Former Sheriff’s Deputy Admits Guilt in Crypto-Related Crimes
A former deputy sheriff from Los Angeles County entered a guilty plea on Monday to two federal charges linked to his involvement with a cryptocurrency entrepreneur who referred to himself as “the Godfather.” Michael David Coberg, 44, from Eastvale, is among several ex-deputies who have acknowledged their roles in a vast illegal operation led by Adam Iza, who himself pleaded guilty earlier this year to multiple offenses. Following his guilty plea, Coberg could face a maximum sentence of 30 years in federal prison for conspiracy to commit extortion and conspiracy against rights, as indicated in a statement from the U.S. Attorney’s office in Los Angeles. Coberg, who served as both a deputy and a pilot for the Sheriff’s Department, assisted Iza in executing extortion activities in October 2021.
Details of the Extortion Scheme
During his work with Iza, Coberg carried a firearm and presented himself as an active law enforcement officer while he was reportedly involved in the interrogation of a victim identified in court documents as “L.A.” Prosecutors revealed that while Coberg monitored the victim, Iza demanded and recorded a video of the victim transferring $127,000 to a bank account controlled by him. Following this, Iza ordered his security personnel to confiscate the victim’s passport. The next day, Coberg took both Iza and the victim to a shooting range located at Iza’s home, leaving them alone together. It was during this time that Iza allegedly held the victim at gunpoint, coercing the victim’s business partner into transferring additional funds, which occurred later that same day.
Reactions and Background
Coberg’s attorney did not provide immediate comments regarding the case. The Sheriff’s Department stated in an email that Coberg had been separated from the department as of September 4, 2025, and condemned his actions as “reprehensible,” emphasizing that they breached departmental standards. The U.S. Attorney’s office noted that in September 2021, Coberg conspired with Iza to orchestrate the arrest of an individual on drug charges. In this particular instance, Coberg and accomplices manipulated the victim’s ex-girlfriend into inviting him to Los Angeles under the pretense of rekindling their relationship and using drugs together.
Manipulation and Arrest of Victim
Upon the victim’s arrival at Los Angeles International Airport, a co-conspirator picked him up in a Tesla to facilitate a drug purchase. Subsequently, the driver took the victim to Paramount, where Coberg and another former deputy arranged a traffic stop. An uninformed deputy, acting on a tip, searched the vehicle and discovered psilocybin mushrooms and cocaine, resulting in the victim’s arrest. During this incident, Coberg was observed driving past the scene in a black Cadillac Escalade SUV, with Iza seated in the back.
Previous Scrutiny and Ongoing Investigations
Coberg’s conduct as a deputy had already attracted criticism prior to these allegations. In 2018, a KPCC investigation revealed that he had been involved in four on-duty shootings, all of which were deemed lawful. The report noted that Coberg claimed his superiors removed him from a specialized anti-gang unit and assigned him less significant duties, such as cleaning vehicles, a statement contested by the Sheriff’s Department. Meanwhile, Iza, aged 25, previously residing in 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 related to conspiracy against rights, wire fraud, and tax evasion. According to the U.S. attorney’s office, Iza built a fraudulent empire through deceptive marketing and cryptocurrency schemes, amassing millions by intimidating and extorting victims, illegally hacking Facebook accounts, and engaging in various criminal activities.
Future Sentencing for Coberg
Coberg is set to receive his sentencing on February 17.
