Setting Traps and Extortion, Fake Arrests! Former Los Angeles County Sheriff's Deputy Assists Crypto Scammers, Sentenced to 5 Years in Prison

Former LASD Deputy Chief Coberg Colluded with Crypto Scammers for Extortion and Entrapment, Sentenced to 63 Months in Prison and Ordered to Pay $127,000.

The U.S. Department of Justice announced on March 16 that Michael David Coberg, a former Los Angeles County Sheriff’s Department (LASD) deputy chief and helicopter pilot, was sentenced to 63 months in federal prison and ordered to pay $127,000 in restitution for assisting a jailed cryptocurrency scammer in extortion and fake arrest operations.

Former Officer Collaborated 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 commit extortion and conspiracy to violate citizens’ rights. Prosecutors stated 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. He has been federally detained since September 2024, 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 acting as a “business partner and advisor,” with Iza paying Coberg at least $20,000 per month.

Prosecutors noted in the sentencing memo that Coberg, who had sworn to uphold the U.S. Constitution and laws, abused the powerful authority represented by his badge for personal gain.

Extortion Case: Victim Forced to Transfer $127,000 from Residence

The Department of Justice stated that in October 2021, Coberg accompanied other security personnel to escort a victim, who was targeted due to financial disputes with Iza’s business partner. After bringing the victim to Iza’s residence, Iza placed a handgun on the table and also had an assault rifle nearby.

Coberg identified himself as 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 on video. Afterwards, Iza’s security personnel took the victim’s passport and returned him to the hotel.

The Department further disclosed that the next day, Coberg continued questioning the victim, inquiring 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 victim did later that day. Coberg not only participated in the extortion but also played roles in assisting and intimidating at multiple critical points.

Fake Arrest Operation: Entrapment to Lure Victim to Los Angeles and Arrest on Drug Charges

Another criminal act occurred in September 2021. The Department of Justice stated that Coberg, Iza, and others conspired to lure another victim from Miami to Los Angeles, then arranged for the victim to be arrested on drug possession charges. A month earlier, Iza and two LASD deputy chiefs 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, pretending to reconcile, successfully convincing her to fly to Los Angeles to meet and use drugs together. Following Coberg’s advice, the accomplices purchased a plane ticket for the victim, picked him up at Los Angeles International Airport, took him to obtain drugs, and then went to a location in Paramount to wait for another LASD deputy chief 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 stated 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 chief 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 colleague, further provoking.

Coberg was ultimately sentenced by federal judge Percy Anderson to 63 months in prison. Besides Coberg, another former LASD deputy chief involved, Christopher Michael Cadman, pleaded guilty to federal criminal charges in August 2025 and is awaiting sentencing in the coming months. The case was investigated by the FBI and IRS Criminal Investigation, with assistance from LASD.

• This article is reprinted with permission from: 《Block Talk》
• Original title: 《Former Los Angeles County Deputy Chief Involved in Crypto Scamster’s Hitman, Sentenced to Over 5 Years in Prison》
• Original author: Xun