Key Points
- Michael Coberg, ex-LA County Sheriff’s deputy, received a 63-month federal prison sentence
- He accepted monthly payments of $20,000 to serve as security for crypto platform founder Adam Iza
- Adam Iza, self-described “Crypto Godfather,” coerced a victim into transferring $127,000 using armed threats
- Coberg orchestrated a fabricated drug arrest targeting another victim flown in from Miami
- Adam Iza admitted guilt and awaits his sentencing date
A former member of the Los Angeles County Sheriff’s Department has received a federal prison sentence for exploiting his position in law enforcement to assist a cryptocurrency businessman in extorting competitors and orchestrating fraudulent arrests.
On Monday, 44-year-old Michael Coberg received a 63-month sentence in federal prison. The court additionally mandated he pay $127,000 in victim restitution.
Back in September, Coberg entered a guilty plea to charges of conspiracy to commit extortion and conspiracy against rights.
According to federal prosecutors, Coberg received a minimum of $20,000 monthly to operate as a private security contractor for Adam Iza, who founded the cryptocurrency trading platform Zort. Iza dubbed himself the “Crypto Godfather.”
Federal authorities have held Iza in custody since September 2024.
How the Extortion Operation Unfolded
During October 2021, Coberg participated in picking up an individual — referenced in court documents as “L.A.” — whose business associate was engaged in a financial disagreement with Iza.
Coberg transported this individual to Iza’s residence, where Iza filmed the victim completing a $127,000 bank transfer while Coberg provided armed supervision. The victim’s passport was confiscated prior to his release.
On another occasion, Coberg accompanied Iza in taking the victim to a firearms range. According to prosecutors, Iza threatened the man with a firearm and demanded monetary transfers.
In an unrelated incident, another victim designated as “R.C.” had previously been threatened at gunpoint by Iza alongside two additional deputies and compelled to transfer $25,000.
Coberg and his associates subsequently arranged for R.C.’s former romantic partner to contact him and persuade him to travel from Miami to Los Angeles based on fabricated reasons.
The Fabricated Drug Bust
Following R.C.’s arrival, the group directed him to acquire narcotics. Coberg then alerted a fellow deputy, who conducted a traffic stop and executed the arrest.
Federal prosecutors characterized this operation as a fraudulent drug operation engineered to punish Iza’s business competitor.
Christopher Cadman, another former deputy, had previously entered a guilty plea in August for his participation in assisting Iza.
In their sentencing memorandum, prosecutors stated 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 have indicated that Iza operated a more extensive criminal network that recruited off-duty police officers.
Prosecutors claimed the organization engaged in criminal activities that included plans to misappropriate as much as $100 million in cryptocurrency holdings.
In January 2025, Adam Iza entered guilty pleas to several charges including fraud and conspiracy against rights. His sentencing hearing remains scheduled for a future date.
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