Former Los Angeles Deputy Receives 63-Month Sentence for Aiding Cryptocurrency 'Godfather' in Extortion Scheme
A federal court sentenced Michael Coberg to 63 months behind bars for his involvement in assisting the notorious crypto 'Godfather' in orchestrating a fraudulent drug arrest and extorting $127,000 from a victim.
An ex-deputy from the Los Angeles County Sheriff's Department received a prison sentence exceeding five years for his role in assisting Adam Iza, an incarcerated cryptocurrency entrepreneur known as "The Godfather," in extorting multiple victims.
Michael Coberg was sentenced by a federal court in California to 63 months of incarceration along with a directive to pay $127,000 in restitution for his participation in helping Iza extort a business rival and orchestrating a fabricated drug possession arrest targeting another individual, according to an announcement made Monday by the US Attorney's office in Los Angeles.
In September, Coberg entered a guilty plea to charges of conspiracy to commit extortion and conspiracy against rights.
According to prosecutors, Iza, who established the cryptocurrency trading platform Zort and went by the moniker "The Godfather," compensated Coberg with a minimum of $20,000 per month for providing security services.
In January 2025, Iza entered a guilty plea to charges of extorting numerous individuals and is currently awaiting his sentencing hearing.
Prosecutors detail Coberg's extortion, drug sting
Prosecutors revealed that in October 2021, Coberg participated as part of a team that retrieved a victim, referred to only as "L.A.," whose business partner was engaged in a financial disagreement with Iza.
L.A. was transported by Coberg to Iza's residence, where Iza captured video footage of L.A. transferring $127,000 into Iza's bank account as Coberg provided security.
Additionally, Coberg transported both Iza and L.A. to a firearms shooting range, where according to prosecutors, Iza threatened L.A. at gunpoint and coerced him into transferring funds.
According to prosecutors, Coberg additionally collaborated with Iza and other accomplices to orchestrate a setup targeting a victim identified only as "R.C.," resulting in their arrest on drug-related charges.
R.C. had previously been involved in a confrontation during which Iza, Christopher Cadman — a former Sheriff's Department deputy who entered a guilty plea in August for assisting Iza — and an additional deputy threatened R.C. at gunpoint to force the transfer of $25,000 to Iza.
Coberg collaborated with others to establish a fraudulent sting operation in which R.C.'s former girlfriend contacted them and persuaded them to travel to LA with the intention of using drugs together.
Upon arrival at the airport, R.C. was collected, transported to obtain drugs, and subsequently intercepted and arrested by a Sheriff's Department deputy who had been alerted by Coberg.
In their sentencing memorandum regarding Coberg, prosecutors stated that he exploited "the awesome power of his badge. And he did so for an all-too-common reason: greed."