Ex-LASD deputy receives prison sentence for involvement in extortion scheme.
A former deputy of the Los Angeles County Sheriff’s Department has been sentenced to five years and three months in federal prison for his involvement in an extortion scheme that leveraged his position to benefit a cryptocurrency trader. Michael Coberg, 44, of Eastvale, was also ordered to pay restitution of 7,000 to the victim of his crimes.
Coberg entered a plea of guilty in September 2025 to charges including conspiracy to commit extortion and conspiracy against rights. At the time of his illegal activities, Coberg not only served as a sheriff’s deputy but also worked as a helicopter pilot. He and several fellow deputies operated side businesses providing private security for Adam Iza, a 25-year-old crypto entrepreneur from Beverly Hills who referred to himself as “the Godfather” of the digital currency world.
Iza, who is currently imprisoned and awaiting sentencing after pleading guilty to multiple charges including conspiracy against rights, wire fraud, and tax evasion, engaged Coberg in a partnership that went beyond traditional security services. Under this arrangement, Coberg reportedly received over ,000 per month from Iza and was involved in plans to start an anabolic steroid business.
The conspiracy came into focus when Coberg and others targeted a victim involved in a financial dispute with Iza. They forcibly detained this individual, referred to in court documents as L.A., and coerced him into transferring 7,000 to Iza’s account. Following this transfer, Coberg continued to interrogate L.A. and later facilitated further intimidation tactics, including taking the victim to a shooting range where Iza held him at gunpoint.
In an additional facet of their criminal activities, Coberg collaborated with Iza to set up a false drug arrest for another rival. They orchestrated a plan to lure this target to Los Angeles under false pretenses, culminating in a traffic stop that resulted in an unjustified arrest for drug possession.
The Los Angeles Sheriff’s Department has since stated that Coberg’s actions are not reflective of their mission or the integrity of its personnel. The department expressed dismay at the former deputy’s conduct, emphasizing that such behavior contradicts the standards they uphold for all officers. This case shines a stark light on exploitation and corruption within law enforcement, highlighting the serious implications of collusion between law enforcement officials and criminal enterprises.
As the investigations continue, the ramifications of these actions may extend beyond individual fates, possibly impacting broader discussions about accountability and oversight within law enforcement agencies in Los Angeles County. Media News Source reports that Coberg was officially separated from the sheriff’s department on September 4, 2025, as the fallout from this significant breach of trust unfolds.
