Former LASD Deputy Jailed for Colluding with “Crypto Godfather” in Extortion and False Arrest

Los Angeles, CA – A former Los Angeles County Sheriff’s Department (LASD) deputy and helicopter pilot, Michael David Coberg, has been handed a significant 63-month federal prison sentence. The U.S. Department of Justice announced on March 16 that Coberg was found guilty of assisting an already incarcerated cryptocurrency fraudster in elaborate schemes involving extortion and false arrests. In addition to his prison term, he has been ordered to pay $127,000 in restitution.

The Unholy Alliance: Officer and “Crypto Entrepreneur”

Coberg, 44, of Eastvale, admitted in September 2023 to one count of conspiracy to commit extortion and one count of conspiracy against civil rights. Prosecutors revealed that while still an active LASD employee, Coberg secretly operated as a “business partner and consultant” for Adam Iza, a 25-year-old individual who falsely portrayed himself as a legitimate cryptocurrency entrepreneur. In reality, Iza was orchestrating fraudulent marketing and crypto scams, leading to his federal detention since September 2024. Iza has already pleaded guilty to related federal charges and awaits his own sentencing.

The illicit partnership proved lucrative for Coberg, who received at least $20,000 monthly from Iza. This arrangement starkly contrasted with his sworn duty to uphold the U.S. Constitution and laws. As highlighted in the prosecutors’ sentencing memorandum, Coberg flagrantly abused the powerful public authority vested in his badge for personal financial gain, a profound betrayal of public trust.

The Extortion Scheme: A Victim Under Duress

The extent of Coberg’s complicity became chillingly clear in an October 2021 incident. The Department of Justice detailed how Coberg, alongside Iza’s security personnel, abducted a victim targeted due to a financial dispute with Iza’s business partner. The victim was brought to Iza’s residence, where a menacing display awaited them: a handgun prominently placed on a table, an assault rifle nearby.

Coberg, leveraging his identity as an active law enforcement officer, actively monitored and interrogated the terrified victim. Under this intense pressure, Iza forced the victim to transfer $127,000 into an account under his control, meticulously filming the entire coercive act. To further assert dominance, Iza’s security staff seized the victim’s passport before releasing them back to their hotel.

The intimidation didn’t end there. The following day, Coberg continued his interrogation, probing for details about the financial dispute and the whereabouts of the victim’s business partner. He then escorted Iza and the victim to an on-site shooting range, leaving them alone. There, Iza escalated the threats, brandishing a gun and demanding that the business partner transfer funds – a demand that was met later that day. Coberg’s active participation and intimidating presence were crucial in facilitating this brutal act of extortion.

The Deceptive Arrest: Framing a Victim

Another egregious act of corruption unfolded in September 2021. Coberg, Iza, and their co-conspirators devised a sinister plot to lure a different victim from Miami to Los Angeles, intending to frame them for unlawful drug possession. This plot was preceded by an earlier incident a month prior, where Iza, aided by two LASD deputies, had already forced this victim to transfer $25,000 at gunpoint.

The intricate false arrest scheme began with the victim’s ex-girlfriend making a deceptive call, feigning interest in reconciliation and convincing the victim to fly to Los Angeles for a meeting and drug use. Following Coberg’s precise instructions, the co-conspirators purchased the victim’s plane ticket, arranged for his pickup at LAX, facilitated his acquisition of drugs, and then directed him to a specific location in Paramount. There, another unsuspecting LASD deputy was waiting to perform a staged traffic stop and arrest.

Coberg further manipulated the system by falsely informing a colleague that an informant had reported a white Tesla carrying a wanted person and drugs. This fabricated tip led the unwitting deputy to stop the vehicle, where cocaine was found inside the car and drugs in the victim’s backpack, culminating in the victim’s arrest.

During the arrest, Coberg himself was present, slowly driving his vehicle past the scene while Iza, seated in the back, chillingly observed and filmed the event. Afterwards, Coberg messaged the involved deputy, expressing gratitude for the “successful” stop and remarking, “that kid enjoyed it” – a clear reference to Iza. Iza later sent photos of the arrest to the victim, a final act of psychological torment.

Justice Served and Ongoing Investigations

U.S. District Judge Percy Anderson delivered Coberg’s 63-month sentence, marking a significant step in addressing this egregious case of law enforcement corruption. Beyond Coberg, another former LASD Deputy implicated in the schemes, Christopher Michael Cadman, pleaded guilty to federal criminal charges in August 2023, with his sentencing anticipated in the coming months. The extensive investigation was a collaborative effort by the FBI and IRS Criminal Investigation, with valuable assistance from the LASD itself.