US Department of Justice announces on March 16 that former Los Angeles County Sheriff’s Department (LASD) deputy sheriff and helicopter pilot Michael David Coberg has been sentenced to 63 months in federal prison and ordered to pay $127,000 in restitution for assisting a jailed cryptocurrency scammer in extortion and false arrest operations.
Former officer colludes with “crypto godfather,” earning at least $20,000 monthly
According to a press release from the U.S. Central District Federal Prosecutor’s Office, 44-year-old Coberg, residing in Eastvale, admitted in September 2025 to conspiracy to extort and conspiracy to violate civil rights. Prosecutors state that at the time, Coberg was still employed by LASD but secretly worked for 25-year-old Adam Iza, who is now in federal custody. Iza claims to be a cryptocurrency entrepreneur but is involved in fraudulent marketing and crypto scams. Since September 2024, Iza has been detained by federal authorities, pleaded guilty to related federal charges, and is awaiting sentencing in the coming months. Coberg’s cooperation with Iza was not just security work but involved participation as a “business partner and advisor,” with Iza paying Coberg at least $20,000 per month.
In sentencing memos, prosecutors noted that Coberg, who had sworn to uphold the U.S. Constitution and laws, abused the authority symbolized by his badge for personal gain.
Extortion case: Victim taken to residence and forced to transfer $127,000
The Department of Justice states that in October 2021, Coberg accompanied other security personnel to escort a victim, who was targeted due to financial disputes involving their business partner and Iza. After being taken to Iza’s residence, Iza placed a handgun on the table and also had an assault rifle nearby.
Coberg claimed to be an active law enforcement officer and monitored and questioned the victim. During this time, Iza forced the victim to transfer $127,000 into an account under his control and recorded the process. Subsequently, Iza’s security personnel took the victim’s passport and returned him to a hotel.
Further disclosures reveal that the next day, Coberg continued questioning the victim about the financial dispute and the whereabouts of the business partner. Later, Coberg took Iza and the victim to a shooting range inside the residence, where they were left alone. Iza then threatened the victim with a gun, demanding his business partner transfer funds, which the latter did later that day. Coberg was involved not only in the extortion process but also played roles in assisting and intimidating at multiple critical points.
Fake arrest scheme: setting up to lure victim to Los Angeles and arresting on drug charges
Another criminal act occurred in September 2021. The Department of Justice states that Coberg, Iza, and others conspired to lure another victim from Miami to Los Angeles and then arranged for his arrest on drug possession charges. A month earlier, Iza and two LASD deputy sheriffs working for him had used guns to force the victim to transfer $25,000 into an account controlled by Iza.
According to prosecutors, accomplices first used the victim’s ex-girlfriend to call, feigning reconciliation, successfully convincing her to fly to Los Angeles to meet and use drugs together. Following Coberg’s advice, accomplices purchased a plane ticket for the victim, picked him up at Los Angeles International Airport, took him to obtain drugs, and then headed to a location in Paramount to wait for another LASD deputy sheriff to conduct a stop and arrest. Coberg also lied to a colleague, claiming an informant indicated a white Tesla was carrying a wanted person and drugs. The colleague eventually stopped the vehicle, found cocaine and drugs in the victim’s backpack, and arrested him.
The Department of Justice states that during the arrest, Coberg drove slowly past the scene, while Iza sat in the back seat observing and filming the arrest. Afterwards, Coberg messaged another involved deputy sheriff to thank him for assisting with the stop, saying “that kid really enjoyed it,” referring to Iza. Iza later sent photos of the arrest to the others, further provoking them.