L.A. County sheriff’s deputy made $20,000 a month on crypto mogul’s payroll. Now he’ll do 5 years in prison

A former Los Angeles County sheriff’s deputy who conspired with a cryptocurrency magnate to extort and falsely arrest rivals was sentenced Monday to more than five years in prison.

Michael David Coberg, who was a deputy and Sheriff’s Department helicopter pilot at the time of the crime, pleaded guilty last year to conspiracy to commit extortion and conspiracy against rights.

“These actions represent a profound abuse of governmental power,” U.S. District Judge Percy Anderson said during Coberg’s sentencing hearing Monday afternoon. “There are serious consequences when you choose to ignore the law you swore to uphold.”

Anderson sentenced Coberg to 63 months in prison and three years of supervised release. Coberg’s attorney had requested a two-year prison term.

“But for this crime, he’s led an exemplary life,” Edward M. Robinson told the judge about his client.

Coberg is one of several former deputies who admitted participation in a sprawling illegal enterprise run by Adam Iza, a Southern California crypto mogul who referred to himself as “the Godfather.” Coberg worked as a private security guard and business partner for Iza and received at least $20,000 per month for his services, according to his plea agreement.

“I do take full responsibility,” Coberg said during the hearing. “It was out of greed.”

In September 2021, Coberg conspired with Iza and another co-conspirator to lure a victim — identified only by the initials R.C. — from Miami to L.A. and cause him to be arrested with drugs, according to the plea agreement.

A deputy — who prosecutors said was not privy to the illicit scheme — searched R.C.’s car after being tipped off by Coberg and found psilocybin mushrooms and cocaine and arrested the victim. Coberg admitted that during the arrest he slowly drove past the scene with the window rolled down so Iza could watch.

Afterward, Coberg texted another deputy thanking him for facilitating the traffic stop and stating that “the kid enjoyed it.”

The following month, Coberg conspired with Iza to extort at least $127,000 from a victim — identified only by the initials L.A. — with whom Iza had a financial dispute. Coberg acted as an investigator and told the victim he was an active-duty law enforcement officer.

As Coberg stood watch, Iza recorded a video of the victim transferring his entire bank balance to an account that Iza controlled, according to the plea agreement. Coberg admitted to escorting Iza and the victim the next day to a shooting range in the basement of Iza’s mansion and leaving the two alone.

According to the plea agreement, Iza then held the victim at gunpoint and demanded the victim’s business partner transfer money to him, which the victim’s business partner did.

Coberg separated from the sheriff’s department in September 2025.

“The actions this individual engaged in are reprehensible and are a clear violation of our Department standards,” the department said in an emailed statement.

Iza, previously of Beverly Hills and Newport Beach, has been in federal custody since September 2024. He pleaded guilty last year to charges of conspiracy against rights, wire fraud and tax evasion. He was separately charged in Connecticut last year with conspiracy to commit kidnapping and conspiracy to interfere with commerce by robbery.

Iza built a mini-empire off “fraudulent marketing and cryptocurrency schemes,” according to the U.S. attorney’s office in L.A. Iza made millions online while intimidating and extorting people, illegally hacking Facebook accounts and engaging in other criminal activity.