Former Deputy Admits Guilt in Cryptocurrency-Related Crimes
A former deputy sheriff from Los Angeles County has admitted guilt to two federal charges linked to his involvement with a cryptocurrency entrepreneur who dubbed himself “the Godfather.” Michael David Coberg, 44, from Eastvale, is the most recent of several ex-deputies to acknowledge their role in a vast illegal operation led by Adam Iza, who also pleaded guilty this year to multiple offenses. Coberg could face a maximum of 30 years in federal prison after his guilty plea for conspiracy to commit extortion and conspiracy against rights, as indicated by a statement from the U.S. attorney’s office in Los Angeles. Coberg, who served as both a sheriff’s deputy and a helicopter pilot for the department, assisted Iza in executing extortion activities in October 2021.
Details of the Extortion Scheme
According to prosecutors, Coberg was armed and presented himself as an active law enforcement officer while collaborating with Iza. He reportedly “interrogated” a victim identified in court documents as “L.A.” During this encounter, Coberg kept watch over the victim while Iza demanded and recorded a video of the victim transferring $127,000 to a bank account controlled by Iza. Iza then instructed his security personnel to confiscate the victim’s passport. On the following day, Coberg is said to have taken both Iza and the victim to a shooting range at Iza’s residence, where Iza held the victim at gunpoint to coerce a monetary transfer from the victim’s business partner, which eventually occurred later that same day.
Reactions and Background
A representative for Coberg did not provide immediate comments following the plea. The Sheriff’s Department confirmed that Coberg had separated from the force on September 4, 2025, and stated that his actions were “reprehensible” and a severe breach of departmental standards. Furthermore, in September 2021, Coberg was involved in setting up a drug-related arrest. In this case, it was reported that Coberg and others orchestrated a situation where the victim’s ex-girlfriend feigned a desire to reconnect, inviting him to Los Angeles under the pretense of using drugs together.
Arrest and Previous Investigations
Upon the victim’s arrival at Los Angeles International Airport, a co-conspirator picked him up in a Tesla to buy drugs. Subsequently, they were taken to Paramount, where Coberg and another former deputy arranged for a traffic stop. An uninformed deputy searched the vehicle, leading to the discovery of psilocybin mushrooms and cocaine, resulting in the victim’s arrest. During this incident, Coberg reportedly drove slowly past the arrest scene in a black Cadillac Escalade, with Iza watching from the back seat.
Past Scrutiny of Coberg’s Actions
Even prior to facing these charges, Coberg had been under scrutiny for his conduct as a deputy. A 2018 investigation by KPCC revealed that Coberg had been involved in four on-duty shootings, all of which were deemed lawful. The investigation highlighted Coberg’s claims that he was reassigned from an elite anti-gang unit to perform menial tasks due to these incidents, a claim that the Sheriff’s Department contested. Iza, 25, who previously resided in Beverly Hills and Newport Beach, has been incarcerated since last September and is scheduled for sentencing in December. Earlier this year, Iza pleaded guilty to charges of conspiracy against rights, wire fraud, and tax evasion, having built a fraudulent empire through marketing and cryptocurrency schemes while engaging in various illegal activities. Coberg’s sentencing is set for February 17.
