Former L.A. County Deputy Admits Involvement in Crypto Mogul’s Criminal Operations

TLDR

• Michael Coberg, a former L.A. deputy, pleaded guilty to federal extortion charges.
• Coberg worked with crypto mogul Adam Iza, extorting victims and arranging false arrests.
• Coberg faces up to 30 years in prison for conspiracy charges linked to Iza’s schemes.
• Iza and Coberg manipulated victims using threats, financial demands, and false arrests.

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A former Los Angeles County sheriff’s deputy, Michael David Coberg, pleaded guilty to his role in a series of criminal schemes led by cryptocurrency mogul Adam Iza. Coberg admitted to participating in extortion and orchestrating false arrests as part of Iza’s illegal operations. This marks another chapter in the ongoing investigations into corrupt practices involving law enforcement officers working with criminal figures.

Involvement with Cryptocurrency Mogul Adam Iza

Michael David Coberg, 44, pleaded guilty to two federal charges, including conspiracy to commit extortion and conspiracy against rights. His criminal activities were connected to Adam Iza, a former cryptocurrency magnate who previously referred to himself as the “Godfather.” According to the U.S. Attorney’s Office, Coberg worked as an active-duty sheriff’s deputy and helicopter pilot while secretly aiding Iza in his illicit business dealings.

Coberg’s role in Iza’s scheme began in 2021. As a trusted associate, Coberg was paid at least $20,000 per month to assist with extortion and other criminal activities. He used his position as a law enforcement officer to intimidate victims, making his involvement in Iza’s operations particularly dangerous. Coberg’s actions included threatening individuals with firearms and coercing them into making large financial transfers.

Extortion and False Arrests

One of the most notable incidents occurred in October 2021, when Coberg helped Iza extort $127,000 from a victim. According to court documents, Coberg stood guard while Iza forced the victim to transfer money to a bank account controlled by Iza.

The victim was also stripped of their passport and held at gunpoint in a tense exchange. The following day, Coberg continued to assist Iza by taking the victim to a shooting range, where Iza further intimidated the individual.

Coberg’s involvement wasn’t limited to extortion. In another incident, he helped orchestrate a false arrest in Paramount in September 2021. The arrest was part of a larger plan to set up a victim for a drug-related charge.

Coberg, along with other co-conspirators, staged a scenario in which the victim was lured to Los Angeles under the guise of a drug deal. A traffic stop was arranged, resulting in the victim’s arrest for possessing illegal drugs, including psilocybin mushrooms and cocaine.

Legal Consequences and Sentencing

Coberg’s plea agreement includes a statutory maximum sentence of 30 years in federal prison. He faces 20 years for the extortion charge and up to 10 years for the conspiracy against rights charge.

His sentencing is scheduled for February 2026. Coberg’s case is part of a broader investigation into corruption within the Los Angeles County Sheriff’s Department, involving multiple deputies who allegedly engaged in criminal activities alongside Iza.

Iza, who has been in custody since 2024, pleaded guilty to several federal charges, including wire fraud and tax evasion. He is set to be sentenced in December 2025. The investigation also resulted in charges against other law enforcement officers, further underscoring the extent of corruption within the sheriff’s department.

Ongoing Investigations and Law Enforcement Response

The FBI and the IRS Criminal Investigation division are continuing their investigation into Coberg’s actions and the broader network of corruption. The Los Angeles County Sheriff’s Department has expressed regret over Coberg’s criminal conduct, emphasizing that his actions were a clear violation of department standards. The department also confirmed that Coberg was separated from his position in September 2025 following the criminal charges.

As law enforcement works to dismantle these illegal operations, the case highlights the growing concerns about corruption within agencies meant to uphold the law. Coberg’s guilty plea is just one piece of a larger puzzle involving criminal activity by former deputies, which continues to raise questions about accountability within the sheriff’s department.

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