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Ex–L.A. County Deputy Gets 63 Months for Crypto Extortion Conspiracy

Former Los Angeles County Sheriff’s Deputy and helicopter pilot Michael David Coberg, 44, has been sentenced to 63 months in federal prison for his role in a cryptocurrency‑related extortion conspiracy that included staging a sham arrest of a rival, federal prosecutors said Monday. Coberg pleaded guilty in September 2025 to one count of conspiracy to commit extortion and another conspiracy‑related charge in the U.S. District Court for the Central District of California. Judge Percy Anderson also ordered him to pay $127,000 in restitution after finding that Coberg abused his badge and authority while moonlighting as a highly paid security contractor and business adviser to self‑proclaimed crypto “Godfather” Adam Iza, who prosecutors say ran fraudulent marketing and cryptocurrency schemes. Prosecutors detailed how Coberg collected at least $20,000 a month from Iza and even discussed launching an anabolic‑steroid business with him, behavior they said showed he “violated his oath and abused his power for an all‑too‑common reason: greed.” The case underscores both the corruption risk when sworn officers freelance in lightly regulated crypto circles and the Justice Department’s continuing push to treat crypto‑linked extortion and fraud as serious federal crimes, not online hustles.

Police Corruption and Misconduct Cryptocurrency Crime and Enforcement

📌 Key Facts

  • Michael David Coberg, 44, a former Los Angeles County Sheriff’s deputy and helicopter pilot, was sentenced to 63 months in federal prison.
  • Coberg pleaded guilty in September 2025 to conspiracy to commit extortion and an additional conspiracy‑related charge.
  • Judge Percy Anderson also ordered Coberg to pay $127,000 in restitution for his role in a scheme tied to crypto promoter Adam Iza, who paid Coberg at least $20,000 per month while they plotted schemes including a sham arrest of a rival.

📊 Relevant Data

Black and Hispanic adults are more likely to fall victim to fake online investment opportunities, including crypto scams, with 14% of each group reporting giving money to such scams compared to 4% of White adults and 7% overall.

Online Scams and Attacks in America Today — Pew Research Center

In fiscal year 2024, the average sentence for bribery offenses, which include extortion under color of official right, was 20 months, compared to the 63 months received by Coberg in this case.

Quick Facts: Bribery Offenses FY24 — United States Sentencing Commission

In fiscal year 2024, among individuals sentenced for bribery offenses in federal court, 26.9% were Black and 27.8% were Hispanic, compared to their respective shares of the U.S. population of 13% and 19%.

Quick Facts: Bribery Offenses FY24 — United States Sentencing Commission

The racial composition of the Los Angeles County Sheriff's Department in 2021 was approximately 52.5% Hispanic, 34.5% White, 7.5% Black, and 5.5% Asian, compared to the county's 2023 population of 48.7% Hispanic, 25.9% White non-Hispanic, 8.0% Black, and 15.1% Asian.

LASD employees are now Mirroring LA County Demographics — Los Angeles County Sheriff's Department

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