- A former Los Angeles County sheriff’s deputy was sentenced to over five years in prison for conspiring with a crypto entrepreneur.
- The deputy, Michael David Coberg, abused his law enforcement authority to extort rivals and facilitate a false arrest.
- The entrepreneur, Adam Iza (“Godfather”), allegedly ran fraudulent schemes and paid deputies to act as his enforcers.
- Coberg was paid at least $20,000 per month while still serving as a deputy to intimidate and pressure Iza’s business rivals.
A former Los Angeles County sheriff’s deputy was sentenced to 63 months in federal prison Monday for helping a crypto entrepreneur extort rivals, federal prosecutors announced. Michael David Coberg admitted last year he conspired with LA-based entrepreneur Adam Iza to pressure people involved in business conflicts. Prosecutors said Coberg “abused the awesome power of his badge” for greed.
Iza, who used the moniker “Godfather,” is accused of running fraudulent marketing and crypto schemes. He allegedly surrounded himself with off-duty deputies who acted as bodyguards and advisers. At one point, Iza was accused of posing as an FBI officer to extort crypto at gunpoint. Consequently, he was arrested in September 2024 on charges of conspiracy, wire fraud, and tax evasion.
According to a charging document, Coberg was paid at least $20,000 per month to act as a security guard and enforcer. In one incident, a victim was forced to transfer approximately $127,000 to an account controlled by Iza. During a meeting, Iza displayed firearms while Coberg identified himself as an active-duty officer.
The duo also orchestrated a false arrest of another rival. They watched and recorded a traffic stop where a sheriff’s deputy arrested the victim after finding drugs. Messages sent afterward mocked the victim and referenced the arrest. Meanwhile, Iza has pleaded guilty and remains in federal custody awaiting sentencing.
Prosecutors are processing additional kidnapping charges filed in Connecticut last year. The case details how law enforcement authority was used to pressure rivals in financial disputes. This marks the latest development in the federal prosecution tied to Iza and his associates.
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