Former Los Angeles County Sheriff's Deputy Convicted of Acting as Enforcer for Crypto Fraudster, Sentenced to Over 5 Years in Prison

The U.S. Department of Justice announced on March 16 that former Los Angeles County Sheriff’s Department (LASD) Deputy Sheriff and helicopter pilot Michael David Coberg was sentenced to 63 months in federal prison and ordered to pay $127,000 in restitution for assisting a jailed cryptocurrency scammer in extortion and false arrest operations.
Former Officer Colludes with “Crypto Godfather,” Earning at Least $20,000 Monthly
According to a press release from the U.S. Central District of California Federal Prosecutor’s Office, 44-year-old Coberg, residing in Eastvale, admitted in September 2025 to conspiracy to commit extortion and conspiracy to violate civil rights. Prosecutors stated that at the time, Coberg was still employed by LASD but secretly worked for 25-year-old Adam Iza, who is now in federal custody. Iza claims to be a cryptocurrency entrepreneur but is involved in fraudulent marketing and crypto scams. He has been detained by federal authorities since September 2024, pleaded guilty to related federal charges, and is awaiting sentencing in the coming months. Coberg’s cooperation with Iza was not just security work but involved acting as a “business partner and advisor,” with Iza paying Coberg at least $20,000 per month.
The prosecution’s sentencing memo noted that Coberg, who had sworn to uphold the U.S. Constitution and laws, abused the authority symbolized by his badge for personal gain.
Extortion Case: Victim Forced to Transfer $127,000
The Department of Justice further disclosed that in October 2021, Coberg accompanied other security personnel to escort a victim who was targeted due to financial disputes involving his business partner and Iza. After bringing the victim to Iza’s residence, Iza placed a handgun on the table and also had an assault rifle nearby.
Coberg identified himself as an active law enforcement officer and monitored and questioned the victim. During this time, Iza forced the victim to transfer $127,000 into an account under his control and recorded the process on video. Afterwards, Iza’s security personnel took the victim’s passport and returned him to a hotel.
The DOJ further revealed that the next day, Coberg continued to interrogate the victim, asking about the financial disputes and the whereabouts of his business partner. Later, Coberg took Iza and the victim to a shooting range inside the residence, where they were left alone. Iza then threatened the victim with a gun, demanding his business partner transfer money, which the l

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

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.

GateNews3h 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.

GateNews6h 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.

Coinpedia7h 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.

GateNews11h 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.

GateNews14h ago

Houston Crypto Fraudster Sentenced to 23 Years for $20M Meta-1 Coin Scam

Robert Dunlap, a Houston entrepreneur, was sentenced to 23 years in prison for a $20 million cryptocurrency fraud involving fake assets and deceptive practices, impacting over 1,000 victims. His case reflects a broader rise in crypto-related cybercrimes.

GateNews19h ago
Comment
0/400
No comments