Former Sheriff’s Deputy Admits Guilt in Cryptocurrency Extortion Case
A former deputy sheriff from Los Angeles County entered a guilty plea on Monday to two federal offenses linked to his involvement with a cryptocurrency entrepreneur who dubbed himself “the Godfather.” Michael David Coberg, 44, from Eastvale, joins a list of former deputies acknowledging their roles in a vast illegal operation orchestrated by Adam Iza, who also pleaded guilty this year to multiple crimes. Following his plea, Coberg could face a maximum sentence of 30 years in federal prison for conspiracy to commit extortion and conspiracy against rights, as outlined by the U.S. attorney’s office in Los Angeles.
Coberg, previously a deputy and helicopter pilot for the Sheriff’s Department, played a role in Iza’s extortion activities in October 2021. Prosecutors revealed that Coberg carried a firearm and presented himself as an active law enforcement officer while collaborating with Iza. He reportedly “interrogated” a victim, identified in court documents only by the initials “L.A.”
While Coberg kept watch over the victim, Iza pressured him and recorded a video of the victim transferring $127,000 to an account controlled by Iza. Iza then instructed his security personnel to confiscate the victim’s passport. The following day, Coberg brought both Iza and the victim to a shooting range located at Iza’s residence and left them alone. It was then that Iza allegedly held the victim at gunpoint, coercing him to instruct his business partner to send money, which the partner did later that day.
An attorney representing Coberg did not provide a comment when approached on Monday. The Sheriff’s Department stated that Coberg had separated from their ranks on September 4, 2025, and condemned his actions as “reprehensible” and a blatant breach of departmental standards.
In a separate incident in September 2021, Coberg was involved in orchestrating the arrest of an individual on drug charges, according to the U.S. attorney’s office. Prosecutors detailed how Coberg and accomplices had the victim’s ex-girlfriend pose as someone wanting to reconnect. The ex-girlfriend invited her former partner to Los Angeles under the pretense of using drugs together.
Upon the victim’s arrival at Los Angeles International Airport, a “co-conspirator” picked them up in a Tesla to purchase drugs. The driver then took them to Paramount, where Coberg and another former deputy arranged for a traffic stop. A deputy, unaware of the illegal plan, searched the vehicle after receiving a tip and discovered psilocybin mushrooms and cocaine, leading to the victim’s arrest. During this operation, Coberg was seen slowly driving past the scene in a black Cadillac Escalade, with the window down, while Iza observed from the back seat.
Coberg had already attracted attention for his conduct as a deputy prior to these charges. A 2018 investigation by KPCC revealed that he had been involved in four on-duty shootings, all deemed lawful. The report indicated that Coberg claimed he was removed from an elite anti-gang unit and assigned to menial tasks due to those incidents—a claim that the Sheriff’s Department disputed.
Adam Iza, 25, formerly of Beverly Hills and Newport Beach, has been incarcerated since last September and is scheduled for sentencing in December. He pleaded guilty in January to charges including conspiracy against rights, wire fraud, and tax evasion. According to the U.S. attorney’s office, Iza established a fraudulent enterprise based on deceptive marketing and cryptocurrency schemes, managing to amass millions while intimidating and extorting his victims, illegally hacking Facebook accounts, and engaging in various criminal acts. Coberg is set to be sentenced on February 17.
