A former deputy of the Los Angeles County Sheriff’s Department has been sentenced to more than five years in federal prison for his role in a crypto-linked extortion scheme involving a self-proclaimed cryptocurrency businessman.
According to a March 16 press release from the United States Attorney’s Office for the Central District of California, Michael David Coberg, 44, was sentenced to 63 months in prison by Percy Anderson. The court also ordered Coberg to pay $127,000 in restitution.
Coberg had pleaded guilty in September 2025 to one count of conspiracy to commit extortion and one count of conspiracy against rights
Prosecutors said he abused his position as a law enforcement officer while working alongside Adam Iza, a 25-year-old who described himself as a “Godfather” and is currently in federal custody awaiting sentencing on related charges.
The case centers around a series of incidents in 2021 in which Coberg helped Iza intimidate and extort victims during financial disputes tied to crypto-related dealings
In one instance, Coberg accompanied armed associates to confront a victim and stood by while the individual was coerced into transferring $127,000 under duress.
It is worth noting that prosecutors described Coberg’s actions as a serious betrayal of public trust, highlighting that he leveraged his authority as an active-duty deputy to intimidate victims and facilitate criminal activity.
Available court documents also detail a separate scheme in which Coberg and his co-conspirators orchestrated a plan to lure another victim to Los Angeles under false pretenses
The victim was later set up to be arrested on fabricated drug possession charges following a coordinated traffic stop.
Authorities said the scheme involved manipulation, coercion, and coordination with other individuals, including misuse of law enforcement processes to target personal adversaries.
The investigation was led by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Los Angeles County Sheriff’s Department.
The case highlights growing concerns around the misuse of authority and the intersection of law enforcement misconduct with crypto-related financial crimes, particularly as digital asset disputes increasingly spill into real-world enforcement actions.
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