Former LA Deputy Pleads Guilty in Crypto Extortion Plot

• Coberg admitted to helping in extorting victims under the disguise of active police duty.
• Prosecutors detailed staged arrests and forced bank transfers totaling $127,000.
• Multiple former deputies face sentencing over roles in Iza’s crypto criminal network.

A former Los Angeles County Sheriff’s deputy admitted to helping stage false arrests and armed arrests while working for a self-proclaimed “crypto godfather” in 2021. Federal prosecutors said 44-year-old Michael David Coberg entered a guilty plea in Los Angeles on conspiracy charges linked to extortion and violations of civil rights. His sentencing is set for February 17, 2026, as he faces up to 30 years in prison.

Armed Interrogations Under Police Authority

According to court records, Coberg worked alongside 25-year-old crypto promoter Adam Iza, who paid him at least $20,000 per month. Prosecutors said the two had a business contract identifying Coberg as an advisor rather than security. 

However, Coberg allegedly used his badge to pressure victims, introducing himself as active law enforcement while interrogating them. In October 2021, Coberg reportedly helped Iza detain a man identified as “L.A.” at Iza’s residence during a financial dispute. 

The deputy stood guard while Iza placed firearms within view and filmed the victim transferring $127,000 to an account Iza controlled. The next day, Coberg continued questioning the man about the location of his business partner, according to court filings. 

He later drove both men to a shooting range on Iza’s property before leaving them alone, during which Iza allegedly forced more funds from a relative. This incident formed only part of the broader scheme. Investigators said Coberg and Iza planned additional revenue streams, including a failed attempt to launch an anabolic steroid business.

Planned False Drug Arrest

Federal agents detailed another plot from September 2021, in which Coberg and Iza allegedly targeted a second victim identified as “R.C.”. Prosecutors said they recruited the victim’s former girlfriend to lure him from Miami to Los Angeles under false pretenses. 

At Coberg’s instruction, a co-conspirator purchased the travel ticket and collected the man from Los Angeles International Airport in a white Tesla. Prosecutors said the driver took the victim to buy narcotics before heading toward Paramount, where a staged traffic stop had been arranged. 

Another former deputy, Christopher Michael Cadman, helped coordinate the arrest and had previously participated in an August 2021 extortion involving the same victim. Cadman has also pleaded guilty and awaits sentencing in January 2026.

According to the U.S. Attorney’s Office, Coberg falsely informed an uninvolved deputy that a confidential informant with drugs and an active warrant would be driving the Tesla. The unsuspecting deputy conducted the stop, recovered cocaine and psilocybin mushrooms, and arrested the victim. 

Related: Australia Limits Crypto ATM Cash to Protect Users From Scams

Multi-Agency Investigation

The FBI and IRS Criminal Investigation jointly handled the case, with assistance from the Los Angeles County Sheriff’s Department. Prosecutors confirmed that Iza has been in federal custody since September 2024 and awaits his own sentencing in December 2025. He has pleaded guilty to conspiracy against rights, wire fraud, and tax evasion.

Other former deputies also admitted involvement, including David Anthony Rodriguez and Eric Chase Saavedra, both tied to earlier intimidation tactics and alleged payouts. Saavedra pleaded guilty in February and is still awaiting sentencing.

The Sheriff’s Department stated that Coberg separated from the agency on September 4, 2025, calling his actions a violation of department standards. Officials emphasized that the false arrest relied on deception rather than participation from uninvolved deputies.

Meanwhile, Coberg’s guilty plea placed law enforcement misconduct at the center of a financially driven extortion network led by Iza. Federal documents showed how official authority was used to extract payments and manufacture criminal charges. With multiple former deputies awaiting sentencing, the case now shifts to determining the length of Coberg’s punishment.