Former LA Sheriff’s Deputy Sentenced to Over 5 Years for Aiding Crypto ‘Godfather’ in Extortion and False Arrest Schemes
LOS ANGELES — A former Los Angeles County Sheriff’s Department deputy and helicopter pilot has been sentenced to more than five years in federal prison for conspiring with a self-proclaimed cryptocurrency “Godfather” to extort rivals and orchestrate a sham arrest involving illegal drugs.
Michael David Coberg, 44, of Eastvale, California, received 63 months in federal prison on Monday, along with an order to pay $127,000 in restitution. Coberg pleaded guilty in September 2025 to conspiracy to commit extortion and conspiracy against rights, charges that carry maximum penalties of 20 and 10 years, respectively.[1][2][4]
The Crypto Mogul and His Enforcer
At the center of the scheme was Adam Iza, 25, a Beverly Hills and Newport Coast resident who styled himself as the “Godfather” of cryptocurrency. Iza, currently in federal custody since September 2024, engaged in fraudulent marketing and crypto schemes that reportedly generated $16 million. He pleaded guilty to federal extortion charges in January 2025 and awaits sentencing on December 15.[2][4][6]
Coberg, who worked as Iza’s business partner and consultant, earned at least $20,000 per month for his services. Prosecutors described him as Iza’s personal enforcer, leveraging his badge and authority to intimidate victims.[1][3]
Key Incidents in the Conspiracy
The plot unfolded in 2021 amid Iza’s business disputes. In one incident, Coberg participated in luring a victim to Iza’s residence in October 2021. Posing as an active-duty deputy, Coberg interrogated the rival while Iza threatened him with a gun. Iza recorded video of the victim transferring $127,000 from a Bank of America account to one controlled by Iza. Security guards then seized the victim’s passport and drove him back to a hotel.[1][2][3]
Another scheme targeted a victim flown in from Miami. Associates picked him up at Los Angeles International Airport, drove him to purchase drugs, and arranged a traffic stop in Paramount by an LASD deputy. The stop led to a false arrest for possession of cocaine and psilocybin mushrooms, pressuring the victim to pay $25,000 to Iza.[1][4]
Christopher Michael Cadman, 34, of Fullerton, another former LASD deputy, admitted to intimidating the second victim and aiding the false arrest setup. Cadman pleaded guilty in August 2025 and awaits sentencing in January 2026.[1][4]
“Coberg – then employed as an LASD deputy and helicopter pilot – worked on the side with Adam Iza… engaging in fraudulent marketing and cryptocurrency schemes.”
U.S. Attorney’s Office, Central District of California[4]
Abuse of Power and Investigation
Coberg abused his position by using court-authorized search warrants against Iza’s rivals and posing as on-duty law enforcement during extortions. The LASD has cooperated with the federal probe led by the FBI and IRS Criminal Investigation.[1][4]
U.S. District Judge Percy Anderson handed down the sentence, emphasizing the betrayal of public trust. The case highlights growing concerns over law enforcement involvement in cryptocurrency crimes, where officers exploit their authority for financial gain in the volatile crypto industry.[3][5]
Broader Implications for Crypto and Law Enforcement
This scandal underscores risks in the cryptocurrency sector, where fraudulent schemes have proliferated. Iza’s operations involved off-duty deputies as bodyguards and targeted rivals through intimidation. Regulators and agencies are ramping up scrutiny on crypto-related crimes, particularly those involving badge-wielding participants.[3]
The Los Angeles County Sheriff’s Department has faced prior criticism for deputy misconduct, and this case adds to calls for stricter oversight. Coberg’s actions not only netted Iza illicit gains but also eroded faith in those sworn to protect.[1]
Victim Impact and Restitution
Victims endured threats, false imprisonment, and financial loss. The $127,000 restitution directly addresses one extortion payment, but the schemes’ full toll remains unclear. Prosecutors noted Iza’s broader fraud, including multiple extortions.[2][4]
| Name | Role | Status |
|---|---|---|
| Michael David Coberg | Former LASD Deputy | 63 months prison, $127K restitution |
| Adam Iza | Crypto “Godfather” | In custody, awaiting sentencing Dec. 15 |
| Christopher Cadman | Former LASD Deputy | Awaiting sentencing Jan. 2026 |
Legal Proceedings and Future Sentencings
Coberg’s guilty plea came after a detailed federal investigation. Iza’s December hearing and Cadman’s in January will determine further penalties. The U.S. Attorney’s Office for the Central District of California prosecuted, stressing zero tolerance for corrupt officers.[4]
As crypto evolves, cases like this serve as warnings. Law enforcement’s entanglement in such schemes demands vigilance to prevent abuse of power in emerging financial frontiers.