A former deputy sheriff of the Los Angeles County Sheriff’s Department has been sentenced to over 5 years in prison for abusing his position to assist in extortion and staging false arrests to harm business rivals.
According to a Monday announcement from the U.S. Department of Justice, defendant Michael David Coberg (44 years old) was sentenced to 63 months in prison and ordered to pay $127,000 in restitution after pleading guilty to conspiracy to extort and deprivation of civil rights.
Prosecutors stated that Coberg abused his role as a deputy sheriff and helicopter pilot to assist Adam Iza — a crypto entrepreneur who calls himself the “Crypto Godfather” — in targeting business competitors.
The incident took place in 2021 and involved multiple threats aimed at resolving financial disputes. In one case, Coberg accompanied armed individuals to confront the victim and stood by while Iza threatened violence and coerced the victim into transferring $127,000. The victim’s passport was also confiscated before being released.
Authorities also described another plot in which Coberg and accomplices staged a fake arrest. The group lured the victim from Miami to Los Angeles, demanded the purchase of illegal substances, and then arranged for law enforcement to stop the vehicle and make an arrest.
“Coberg swore to defend the Constitution and laws of the United States, but betrayed that oath out of greed,” the prosecutor emphasized.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Polish Parliament Fails to Override President's Veto on Crypto Law; PM Alleges Russian Interference
Polish lawmakers failed to override President Nawrocki's veto on a cryptocurrency regulation bill aimed at aligning with EU standards. Tensions rise as accusations emerge of Russian influence in a major crypto exchange amid liquidity issues and lack of regulation.
GateNews2h ago
Hong Kong SFC Investment Committee Warns Prediction Market Trading May Constitute Illegal Gambling
The Hong Kong SFC warns that prediction markets are speculative and not investment products, lacking regulatory protection. They involve gambling elements, potentially making them illegal. The committee urges the public to differentiate between investment and gambling.
GateNews11h ago
Elizabeth Warren Accuses SEC Chair Paul Atkins of Misleading Congress Over Enforcement Decline
Senator Elizabeth Warren accused SEC Chair Paul Atkins of misleading Congress about enforcement actions' decline. With only 456 new cases in 2025, concerns arise regarding the SEC's effectiveness and the regulatory landscape for cryptocurrency and market oversight.
GateNews14h ago
Sanctioned Exchange Grinex Hit by $13.7M Hack; Blames Foreign Intelligence Services
Grinex, a sanctioned crypto-ruble exchange, has halted operations due to a cyberattack that stole over $13.74 million in USDT. The attack is believed to involve state-level actors aiming to destabilize Russia's financial system. Grinex is cooperating with law enforcement but has no timeline for resuming services.
Coinpedia15h ago
Democratic Senators Question Lax AML Oversight of Major CEX Over $1.7B Iran-Linked Crypto Flows
Democratic senators are scrutinizing the Trump administration's oversight of a cryptocurrency exchange linked to $1.7 billion in Iranian transactions, questioning its AML controls and a lenient bank settlement on sanctions evasion.
GateNews20h ago
Figure Faces Short Seller Accusations Over Blockchain Integration Claims; FIGR Stock Down 53% From January Peak
Figure Technology Solutions faced allegations from Morpheus Research of overstating its blockchain technology use, resulting in a significant drop in share prices. Figure defended its operations, highlighting its digital asset features and strong performance metrics.
GateNews22h ago
