US court jails sheriff’s ex-deputy for aiding crypto fraudster in extortion plot

A federal judge sentenced former Los Angeles County Sheriff’s deputy Michael David Coberg to 63 months in prison for helping crypto entrepreneur Adam “Godfather” Iza extort rivals and arrange a staged arrest tied to financial disputes, federal prosecutors announced on March 16.

Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. Court filings describe how he used law enforcement authority to pressure people during Iza’s business conflicts in Los Angeles. Meanwhile, physical crypto robberies hit new highs, reaching roughly 70 physical assaults on crypto holders in 2025.

While still serving as a deputy, Coberg worked as a paid security guard, adviser, and enforcer for Iza, receiving at least $20,000 per month, according to filings in the Central District of California. The schemes relied on intimidation and the appearance of official police action.

One incident in October 2021 occurred at Iza’s Bel Air residence. A person identified as “Victim L.A.” was brought to discuss a money dispute. During the meeting, Iza displayed firearms, including an assault rifle, while Coberg questioned the person and identified himself as an active-duty officer. The victim then transferred about $127,000 from a Bank of America account to an account controlled by Iza while Coberg was present, according to the filing.

In a separate plan, Coberg and Iza retaliated against another rival by arranging a false arrest. Working with a woman who lured the target from Florida to Los Angeles, they coordinated a preplanned traffic stop where another sheriff’s deputy arrested the victim after drugs were found in the vehicle. Coberg and Iza drove to the scene and recorded video from their car, and later messages referenced and mocked the arrest.

“Coberg swore an oath to uphold the Constitution and laws of the U.S.,” a sentencing memorandum stated. “Instead, [he] 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.”

Iza, who called himself “The Godfather,” built a network of off-duty deputies who acted as bodyguards and advisers during disputes with business rivals, according to investigators. Prosecutors have charged him with conspiracy, wire fraud, and tax evasion; he was arrested in September 2024. Filings attribute tens of millions of dollars to his operation, including roughly $16 million in cryptocurrency, and link it to other criminal activity, including a failed home invasion in 2022. Iza has pleaded guilty and remains in federal custody awaiting sentencing in Los Angeles, and he faces separate kidnapping charges filed in Connecticut last year.

Others tied to Iza’s network have been charged. Iris Ramaya Au, Iza’s former girlfriend, agreed to plead guilty to federal tax charges for failing to report more than $2.6 million in income related to his activities. She faces up to three years in federal prison.

The case was brought by the U.S. Attorney’s Office for the Central District of California and investigated by federal and local authorities. Coberg is expected to serve his term in federal custody, followed by supervised release, under the court’s order.