A former deputy with the Los Angeles County Sheriff’s Department has been sentenced to more than five years in prison for assisting Adam Iza in carrying out an extortion scheme.
A federal court in California handed Michael Coberg a 63-month prison sentence, along with an order to pay $127,000 in restitution, according to the Los Angeles U.S. Attorney’s Office on Monday. Prosecutors said Coberg helped Iza extort one victim and orchestrate a drug-related arrest targeting another individual.
Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. Authorities said he received at least $20,000 per month for providing security services to Iza, the founder of crypto trading platform Zort, who was widely known as “The Godfather.”
Iza pleaded guilty in January 2025 to multiple extortion charges and is currently awaiting sentencing.
Prosecutors outline extortion scheme
According to prosecutors, in October 2021, Coberg was part of a group that detained a victim identified only as “L.A.,” who was involved in a financial dispute with Iza.
Coberg transported the victim to Iza’s residence, where Iza filmed him transferring $127,000 to his bank account while Coberg stood guard.
Prosecutors also said Coberg accompanied Iza and the victim to a shooting range, where Iza allegedly held the victim at gunpoint and demanded additional payments.
Prosecutors said Michael Coberg also conspired with Adam Iza and others to orchestrate the arrest of another victim, identified as “R.C.,” on drug-related charges.
R.C. had previously been involved in a dispute with Iza, during which Iza, Christopher Cadman — who pleaded guilty in August — and another deputy allegedly held the victim at gunpoint and forced a $25,000 transfer.
Authorities said Coberg and his co-conspirators later arranged a staged sting operation. R.C.’s ex-girlfriend allegedly lured him to Los Angeles under the pretense of using drugs together. Upon arrival, R.C. was picked up at the airport, taken to purchase drugs, and then stopped and arrested by a Sheriff’s Department deputy who had been tipped off by Coberg.
In a sentencing memorandum, prosecutors argued that Coberg had abused “the awesome power of his badge,” adding that his actions were driven by “an all-too-common reason: greed.”
