Sheriff’s Deputy Sentenced for Extorting Rivals of Self-Styled Crypto ‘Godfather’

A former Los Angeles County sheriff’s deputy was sentenced to 63 months in federal prison for helping a crypto entrepreneur who called himself “Godfather” extort rivals and stage a false arrest tied to financial disputes, federal prosecutors announced Monday.

The deputy, Michael David Coberg, admitted in September last year that he conspired with LA-based entrepreneur Adam Iza to pressure people involved in business conflicts with him.

“Coberg swore an oath to uphold the Constitution and laws of the U.S.,” prosecutors wrote in a 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.”

Coberg’s sentencing marks the latest development in the federal prosecution tied to Iza and associates accused of using intimidation and police authority to pressure rivals in financial disputes.

Crypto Godfather

Iza, who went by his moniker “Godfather,” gained notoriety after federal prosecutors accused him of running fraudulent marketing and crypto schemes while surrounding himself with off-duty deputies who acted as bodyguards and advisers during disputes witLos Angelsh business rivals.

Investigators say he paid law enforcement officers large sums to accompany him, gather information on opponents, and pressure people involved in financial conflicts.

At one point, Iza had been accused of posing as an FBI officer to extort crypto at gunpoint.

Iza was arrested in September 2024 on charges of conspiracy, wire fraud, and tax evasion tied to several alleged fraud schemes, including a $37 million advertising fraud involving Facebook maker Meta.

Prosecutors say the operation generated tens of millions of dollars, including roughly $16 million in crypto, and was linked to other criminal activity, including a failed home invasion in 2022.

Coberg, meanwhile, was paid at least $20,000 per month to act as a security guard, adviser, and enforcer while still serving in law enforcement, according to a charging document filed in U.S. District Court in Los Angeles.

In one incident described in the filing, a victim identified as “Victim L.A.” was brought to Iza’s Bel Air residence in October 2021 to discuss a financial dispute. During the meeting, Iza displayed firearms, including an assault rifle, while Coberg questioned the victim and identified himself as an active-duty officer, prosecutors said.

The victim ultimately transferred the entire balance of a Bank of America account, about $127,000, to a bank account controlled by Iza while Coberg remained present during the confrontation, according to the filing.

Prosecutors also described a separate plan to retaliate against another rival by orchestrating a false arrest.

Iza and Coberg worked with a woman who encouraged the victim to travel from Florida to Los Angeles and later arranged a traffic stop at a preplanned location where another sheriff’s deputy arrested the victim after drugs were found in the vehicle.

The duo drove to the scene to watch the arrest and recorded video of it from their car. Messages sent afterward mocked the victim and referenced the arrest, according to prosecutors.

Iza has pleaded guilty and remains in federal custody while awaiting sentencing in federal court in Los Angeles as prosecutors process additional kidnapping charges filed in Connecticut last year.