Ex-LASD Deputy Gets 63 Months for Extorting Rivals of Crypto ‘Godfather’

A former Los Angeles County sheriff’s deputy was sentenced Monday to more than five years in federal prison for using his badge to muscle rivals of a self-proclaimed cryptocurrency “Godfather” in a brazen extortion and false-arrest scheme.

Michael David Coberg, 44, of Eastvale, received 63 months behind bars from the U.S. District Judge Percy Anderson, who also ordered him to pay $127,000 in restitution to one victim. 

According to the statement issued by the U.S. Department of Justice (DOJ), Coberg was once an LASD helicopter pilot and he pleaded guilty last September to conspiracy to commit extortion and conspiracy against rights. 

The case centers on Coberg’s side gig with Adam Iza, a 25-year-old operator who branded himself the “Godfather” while running fraudulent cryptocurrency and marketing scams. Currently, he is in federal custody since September 2024 after pleading guilty to wire fraud, tax evasion, and related charges. 

As per the statement, Iza paid Coberg at least $20,000 a month to act as a business partner and advisor—far beyond routine security work. The pair even discussed launching a venture selling anabolic steroids. 

The pair’s coordinated extortions

Prosecutors described how Coberg betrayed his oath for cash. In one 2021 incident, he helped extort $127,000 from a victim identified as “L.A.” amid a financial dispute tied to Iza’s operations. 

Coberg identified himself as an active-duty officer, interrogated the man at Iza’s home while firearms, including an assault rifle, were displayed, and stood guard as Iza recorded a coerced bank transfer. 

The pressure escalated the next day at a shooting range, where Iza held the victim at gunpoint to force additional payments from the victim’s business partner.In another episode, Coberg conspired with Iza and corrupt deputies—including Christopher Michael Cadman, who has also pleaded guilty—to lure a second victim, “R.C.,” from Miami to Los Angeles. 

They staged a romantic pretext, planted cocaine and psilocybin mushrooms during a sham traffic stop in Paramount, and arrested him on bogus drug charges. 

“Federal investigators from the FBI and IRS, with LASD assistance, unraveled the plot. Prosecutors stressed in court filings that Coberg abused “the awesome power of his badge” out of greed, undermining public trust in law enforcement. 

As of now, Iza awaits sentencing after admitting to broader frauds, including hacking Meta accounts to siphon millions in ad credits, while Cadman faces his own sentencing soon. 

The convictions highlight how cryptocurrency schemes can bleed into street-level corruption when flashy operators cross paths with rogue officers willing to trade integrity for monthly payouts. 

Also read: India’s ₹32 Cr Bitcoin Extortion Case: Gujarat HC Grants Bail to Ex-SP