Deputy Extorted, Falsely Arrested Rivals Of LA County Crypto 'Godfather': DOJ

Deputy Extorted, Falsely Arrested Rivals Of LA County Crypto 'Godfather': DOJ

Michael Coberg, 44, of Eastvale, pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. He was sentenced on Monday to five years and three months in federal prison and ordered to pay $127,000 in restitution. Coberg was employed by the LASD at the time of his crimes, which date back to 2021. The now-former deputy and helicopter pilot was among four sheriff's officials hired to act as the crypto trader's personal enforcers against those he perceived as enemies.

The man, Adam Iza, 25, of Beverly Hills and Newport Beach, pleaded guilty last year to charges of conspiracy against rights, wire fraud and tax evasion. He remains in federal custody as he awaits sentencing. Iza hired Coberg to work as his business partner and advisor, in addition to proving security. At one point the pair planned to start a business selling anabolic steroids. Iza paid Coberg at least $20,000 a month for his services, according to prosecutors.

The extortion scheme developed when Coberg and others picked up a victim whose business partner was having a financial dispute with Iza, according to prosecutors. Coberg told the victim that he was an active-duty deputy and interrogated the rival about the dispute. While Coberg stood by, Iza demanded — and recorded video of — the victim transferring $127,000 to a bank account Iza controlled. Iza then directed his security guards to seize the victim's passport and told them to drive the person back to a hotel, prosecutors said.

The next day, Coberg continued to interrogate the victim about the dispute and location of the business partner. Coberg then took Iza and the victim to a shooting range at Iza's home and left the two alone. Iza held the victim at gunpoint and demanded the business partner transfer money to him — which the business partner did later that day, according to prosecutors. In another instance, Coberg conspired with Iza to lure another rival to Los Angeles from Miami and set him up for a false drug arrest, according to prosecutors.

Coberg and his associates persuaded the opponent's ex-girlfriend to call the victim and pretend to be interested in reconnecting and doing drugs together, according to prosecutors. Someone picked the victim up at Los Angeles International Airport, drove him to buy drugs and later took him to Paramount, where an LASD deputy made a traffic stop and arrested him. Ex-LASD Deputy Christopher Cadman, 34, of Fullerton, admitted intimidating the victim, resulting in a $25,000 payment to Iza, and acknowledged helping to set up the false arrest in which cocaine and psilocybin mushrooms were found. Cadman pleaded guilty in August 2025 to federal charges and awaits sentencing. During the arrest, Coberg slowly drove past the scene in a black Cadillac Escalade SUV — with the window rolled down — as Iza watched from the back seat. Iza took videos and photographs of his business rival's arrest, authorities said. After the arrest, Coberg texted Cadman to thank him for facilitating the traffic stop and stated, "the kid enjoyed it," referencing Iza. Iza later taunted the victim by sending him a photograph of the arrest and booking photo.

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