A former Los Angeles County Sheriff’s Department deputy who helped a now-jailed crypto mogul extort a rival and then set up the false arrest of another of the businessman’s opponents faces sentencing Monday on federal charges.
Michael Coberg, 44, of Eastvale in the Inland Empire, faces up to 30 years in federal prison after pleading guilty to conspiracy to commit extortion and conspiracy against rights, according to the U.S. Attorney’s Office.
Prosecutors said Coberg and three other ex-LASD deputies worked side hustles as private security for a Southern California cryptocurrency trader who proclaimed himself “the Godfather.”
That man, Adam Iza, 25, a Beverly Hills and Newport Beach businessman, pleaded guilty in January 2025 to charges of conspiracy against rights, wire fraud and tax evasion and remains in federal custody awaiting sentencing.
Prosecutors say Coberg’s contract with Iza allowed the then-lawman to work as a business partner and adviser in addition to security. Iza paid Coberg at least $20,000 per month for his services, court papers show.
According to the U.S. Attorney’s Office, the extortion scheme developed when Coberg and others picked up a victim whose business partner was having a financial dispute with Iza.
Coberg told the victim, referred to in court records by the initials L.A., that he was an active-duty law enforcement officer and “interrogated” L.A. about the business dispute. While Coberg stood by, Iza demanded — and recorded video of — the victim transferring $127,000 to a bank account Iza controlled. Iza then directed his security guards to seize L.A.’s passport and told them to drive the person back to a hotel, prosecutors said.
The next day, Coberg continued to interrogate the victim about the dispute and location of the business partner. Coberg then took Iza and L.A. to a shooting range at Iza’s home and left the two alone. Iza held the victim at gunpoint and demanded the business partner transfer money to him — which the business partner did later that day, documents filed in Los Angeles federal court show.
In a false traffic stop and arrest scenario, Coberg conspired with Iza in September 2021 to lure another rival from Miami to Los Angeles to set him up for a false drug arrest, prosecutors say.
Coberg and associates set up a plan in which they persuaded the opponent’s ex-girlfriend to call the victim and pretend to be interested in reconnecting and doing drugs together, according to court papers.
The victim was picked up at Los Angeles International Airport, driven to buy drugs, and later taken to a location in Paramount where an LASD deputy would make the traffic stop and arrest.
Ex-LASD Deputy Christopher Cadman, 33, of Fullerton, admitted intimidating the victim, resulting in a $25,000 payment to Iza, and acknowledged helping to set up the false arrest in which cocaine and psilocybin mushrooms were found. Cadman pleaded guilty in August 2025 to federal charges and awaits sentencing.
During the arrest, Coberg slowly drove past the scene in a black Cadillac Escalade SUV — with the window rolled down — as Iza watched from the back seat. Iza took videos and photographs of his business rival’s arrest, authorities said.
After the arrest, Coberg texted Cadman to thank him for facilitating the traffic stop and stated, “the kid enjoyed it,” referencing Iza. Iza later taunted the victim by sending him a photograph of the arrest and booking photo.