A former Los Angeles County Sheriff’s deputy was sentenced to 63 months in federal prison after admitting he helped a jailed crypto executive known as “The Godfather” extort victims. The California federal court also ordered Michael Coberg to pay $127,000 in restitution, the U.S. Attorney’s Office in Los Angeles said.
Coberg pleaded guilty in September to conspiracy to commit extortion and to a conspiracy against rights. Prosecutors say he received at least $20,000 per month from Adam Iza, founder of the cryptocurrency trading platform Zort. Iza pleaded guilty in January 2025 to extorting multiple people and is awaiting his own sentencing.
Court records detail several schemes in which Coberg assisted Iza. In October 2021, Coberg took part in picking up a man identified in filings as “L.A.” who was involved in a financial dispute with Iza. Coberg brought L.A. to Iza’s home while Iza recorded a video showing L.A. transferring $127,000 into Iza’s bank account, with Coberg keeping watch. Prosecutors say the same group later drove to a shooting range, where Iza held L.A. at gunpoint and demanded payment.
Coberg is also accused of conspiring with Iza and others to engineer a drug-possession arrest of another victim, identified as “R.C.” According to filings, R.C. had previously been forced at gunpoint by Iza, former deputy Christopher Cadman — who pleaded guilty in August to assisting Iza — and another deputy, and had been coerced into transferring $25,000 to Iza.
Prosecutors say Coberg helped stage a fake drug sting: R.C.’s ex-girlfriend allegedly lured him to Los Angeles under the pretense of using drugs, he was picked up at the airport and driven to obtain narcotics, and then a Sheriff’s Department deputy whom Coberg had tipped off stopped and arrested him.
In their sentencing memorandum, prosecutors said Coberg abused the authority of his badge and acted out of greed. The case highlights allegations that law enforcement powers were weaponized to intimidate and extort victims on behalf of a jailed crypto entrepreneur.
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