TLDR
- Michael Coberg, former LA Sheriff’s deputy, received a 63-month federal prison sentence
- Monthly payments of $20,000 went to Coberg for providing security services to crypto platform founder Adam Iza
- Adam Iza, who adopted the moniker “Crypto Godfather,” used firearms to force a victim into transferring $127,000
- A fraudulent drug arrest targeting another victim from Miami was orchestrated with Coberg’s assistance
- Adam Iza entered a guilty plea and currently awaits his sentencing hearing
A former member of the Los Angeles County Sheriff’s Department received a federal prison sentence for leveraging his law enforcement authority to assist a cryptocurrency business owner in intimidating competitors and orchestrating a fabricated arrest.
Michael Coberg, age 44, received his 63-month federal prison sentence this Monday. The court additionally mandated restitution payment of $127,000.
Coberg entered a guilty plea in September to charges of conspiracy to commit extortion along with conspiracy against rights.
Federal prosecutors revealed that Coberg collected monthly payments exceeding $20,000 for his work as a security contractor for Adam Iza, who founded the cryptocurrency trading platform Zort. Iza adopted the title “Crypto Godfather” for himself.
Federal authorities have held Iza in custody since September 2024.
The Extortion Scheme
During October 2021, Coberg participated in picking up an individual — court documents refer to him as “L.A.” — whose business partner had entered a financial disagreement with Iza.
Coberg transported this individual to Iza’s residence, where Iza filmed the victim completing a $127,000 transfer to his bank account while Coberg maintained watch. The victim’s passport was confiscated prior to his release.
On another occasion, Coberg accompanied Iza in bringing the victim to a firearms range. Federal prosecutors stated that Iza pointed a weapon at the man and issued demands for money transfers.
In a separate incident, an individual identified as “R.C.” had previously faced armed intimidation from Iza along with two additional deputies, resulting in a forced transfer of $25,000.
Coberg worked with associates to arrange for R.C.’s former girlfriend to make contact and persuade R.C. to travel from Miami to Los Angeles based on misleading information.
The Staged Arrest
Following R.C.’s arrival, they received instructions to acquire narcotics. Coberg provided information to another deputy, who conducted a traffic stop and executed the arrest.
Federal prosecutors characterized this operation as a fraudulent drug enforcement action created 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 authorities revealed that Iza operated a broader network comprising off-duty police officers.
Prosecutors claimed the organization engaged in an operation that included plans to misappropriate cryptocurrency assets valued at $100 million.
Adam Iza entered guilty pleas in January 2025 to several charges including fraud and conspiracy against rights. His sentencing date remains pending.
