A former Los Angeles County Sheriff’s Department deputy and helicopter pilot, Michael David Coberg, was sentenced on Mar. 16 to 63 months in federal prison for his role in an extortion scheme involving a cryptocurrency businessman and the false arrest of rivals.
The case highlights concerns about law enforcement corruption and abuse of power. Prosecutors said Coberg used his position as a law enforcement officer to help Adam Iza, a self-styled cryptocurrency entrepreneur, intimidate and extort business rivals.
Coberg pleaded guilty in September 2025 to conspiracy to commit extortion and conspiracy against rights. Judge Percy Anderson also ordered him to pay $127,000 in restitution. According to court documents, Coberg worked with Iza as a business partner and advisor while still employed by the sheriff’s department. Iza paid Coberg at least $20,000 per month for his services. “Coberg swore an oath to uphold the Constitution and laws of the United States,” prosecutors wrote in their sentencing memorandum. “Instead, [he] betrayed that oath and those he swore to protect, abusing the awesome power of his badge. And he did so for an all-too-common reason: greed.”
In October 2021, Coberg participated in detaining a victim whose business partner had a financial dispute with Iza. The victim was taken to Iza’s residence where firearms were displayed during an interrogation led by Coberg. The victim was forced to transfer $127,000 under threat before being released.
In another incident in September 2021, Coberg conspired with Iza and others to lure another rival from Miami under false pretenses so that he could be arrested on drug charges after drugs were planted in his vehicle during a staged traffic stop by corrupt deputies.
The U.S. Attorney’s Office for the Central District of California supports community outreach through programs focused on victim assistance and public education, according to the official website. The office serves more than 19 million residents across seven counties according to its official website and focuses on prosecuting federal criminal cases as well as handling civil matters for the government according to its official website. E. Martin Estrada has held the position of United States Attorney for this district according to its official website. The office works closely with federal, state, and local law enforcement partners according to its official website.
The FBI and IRS Criminal Investigation led the investigation into this matter with assistance from the Los Angeles County Sheriff’s Department.
