Former Los Angeles Deputy Sheriff Sentenced to Over 5 Years in Prison for Assisting Cryptocurrency Fraud Extortion Scheme

According to Mars Finance, the U.S. Central District of California Federal Prosecutor’s Office announced that former Los Angeles County Sheriff’s Deputy Michael David Coberg was sentenced to 63 months in federal prison and ordered to pay $127,000 in restitution for assisting cryptocurrency scammer Adam Iza in extortion and false arrest. Coberg, who was Iza’s business partner and advisor, earned at least $20,000 per month. In October 2021, Coberg participated in bringing a victim to Iza’s residence; Iza threatened him with a gun, and Coberg, posing as an active law enforcement officer, interrogated the victim, forcing him to transfer $127,000 to Iza’s account. In September 2021, Coberg conspired with Iza and others to set up a scheme, luring another victim from Miami to Los Angeles and arresting him on fake traffic interception and illegal drug possession charges. In September 2025, Coberg pleaded guilty to conspiracy to commit extortion and conspiracy to violate citizens’ rights. Iza has been in federal custody since September 2024, pleaded guilty to federal charges, and is awaiting sentencing.