Ex-L.A. Deputy Sentenced for Crypto Extortion Scheme

Michael David Coberg, a former Los Angeles County deputy, was sentenced to more than five years in federal prison for his role in an extortion scheme involving cryptocurrency businessman Adam Iza. According to multiple reports, Coberg pleaded guilty to one count of conspiracy to commit extortion and one count of conspiracy against rights in September 2025 and was ordered to pay $127,000 in restitution.

Coberg, who was a deputy and helicopter pilot at the time of the crime, worked with Iza to extort rivals and arrange illegal drug possession arrests. Prosecutors reported that Iza paid Coberg at least $20,000 a month for his services. In one instance, Coberg helped lure a victim to Los Angeles under false pretenses and arranged for an LASD deputy to conduct a traffic stop where drugs were planted in the victim's car.

In another incident, Coberg interrogated one of Iza's rivals on behalf of Iza and facilitated the extortion of $127,000. The scheme involved Coberg acting as an investigator while Iza recorded the victim transferring money to his account. Coberg also took Iza and the victim to a shooting range where Iza held the victim at gunpoint and demanded more money.

Coberg is one of several former LASD deputies who pleaded guilty to this scheme, with another deputy, Christopher Michael Cadman, pleading guilty last year. Iza has been in custody since September 2024 and is expected to be sentenced in the coming months. The Justice Department described Iza's operations as a web of intimidation and fraud, highlighting the dangers of law-enforcement officers abusing their power.