TLDR
- Michael Coberg, ex-Los Angeles County Sheriff’s deputy, received 63-month prison sentence
- Received monthly payments of $20,000 to serve as security for cryptocurrency platform founder Adam Iza
- Adam Iza, calling himself the “Crypto Godfather,” compelled victim to hand over $127,000 under armed threat
- Coberg participated in orchestrating fraudulent drug arrest targeting victim flown in from Miami
- Adam Iza entered guilty plea and awaits sentencing on multiple federal charges
A former law enforcement officer from Los Angeles County has been imprisoned for leveraging his position to assist a cryptocurrency business owner in extorting competitors and staging a bogus arrest.
On Monday, Michael Coberg, age 44, received a 63-month federal prison sentence. The court additionally mandated he pay $127,000 in victim restitution.
Coberg entered a guilty plea in September to charges of conspiracy to commit extortion and conspiracy against rights.
Federal prosecutors revealed that Coberg collected minimum monthly payments of $20,000 for providing security services to Adam Iza, who founded the cryptocurrency trading platform Zort. Iza branded himself as the “Crypto Godfather.”
Iza has remained in federal detention since September 2024.
The Extortion Scheme
In October 2021, Coberg participated in retrieving an individual — referenced in court documents as “L.A.” — whose business associate was embroiled in a financial conflict with Iza.
Coberg transported this individual to Iza’s residence, where Iza filmed the victim transferring $127,000 into his bank account while Coberg provided armed supervision. The victim’s passport was confiscated prior to release.
On another occasion, Coberg accompanied Iza in taking the victim to a firearms range. Federal prosecutors stated that Iza threatened the man with a weapon and demanded monetary transfers.
In an earlier incident, a different victim designated as “R.C.” had been held at gunpoint by Iza along with two additional deputies and coerced into transferring $25,000.
Coberg and accomplices subsequently arranged for R.C.’s former girlfriend to contact and persuade R.C. to travel from Miami to Los Angeles based on fabricated reasons.
The Staged Arrest
Upon R.C.’s arrival, they were instructed to acquire narcotics. Coberg alerted a fellow deputy, who conducted a traffic stop and executed the arrest.
Federal prosecutors characterized this as a fraudulent drug operation engineered to punish Iza’s business rival.
Christopher Cadman, another former deputy, had previously entered a guilty plea in August for his participation in assisting Iza.
Prosecutors wrote in their sentencing memo that Coberg “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.”
Law enforcement officials indicated that Iza operated a broader criminal network that recruited off-duty police officers.
Prosecutors claimed the organization engaged in schemes that at one stage targeted the theft of cryptocurrency assets valued up to $100 million.
Adam Iza entered guilty pleas in January 2025 to numerous charges including fraud and conspiracy against rights. His sentencing hearing remains pending.
