A former Los Angeles County Sheriff’s deputy has been sentenced to more than five years in prison for using his badge to help a man extort rivals and engineer the false arrest of a business enemy.
Michael David Coberg, 44, received a 63-month sentence and was ordered to pay $127,000 in restitution after pleading guilty to conspiracy to commit extortion and conspiracy against rights, according to a Monday statement of the Department of Justice.
Prosecutors said Coberg abused his position as a deputy and helicopter pilot to assist Adam Iza, a cryptocurrency entrepreneur who referred to himself as “Crypto Godfather,” in targeting business rivals.
Abuse of power
According to the DOJ, the scheme unfolded in 2021 and involved multiple instances of intimidation tied to financial disputes. In one incident, Coberg accompanied armed associates to confront a victim and stood by while Iza used threats of violence to force the individual to transfer $127,000. The victim’s passport was confiscated during the encounter before being released.
Authorities also described a separate plot where Coberg and co-conspirators orchestrated a staged arrest. The group lured a victim from Miami to Los Angeles under pretenses, instructed the individual to obtain narcotics, and then arranged for law enforcement officers to carry out a traffic stop and arrest.
“Coberg swore an oath to uphold the Constitution and laws of the United States,” prosecutors said. “Instead, [he] betrayed that oath and those he swore to protect, abusing the awesome power of his badge. And he did so for an all-too-common reason: greed.”
Coberg’s sentencing is the latest development in a broader case centered on Iza, who has been in custody since September 2024 and has pleaded guilty to multiple charges, including fraud and conspiracy against rights. He is currently awaiting sentencing.
Prosecutors have alleged that Iza led a network of associates — including off-duty law enforcement officers — in a wider operation involving intimidation, fraud, and crypto-related disputes. The group was accused of plotting a scheme that at one point aimed to steal as much as $100 million in crypto assets.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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