Sheriff's Deputy Sentenced for Extorting Rivals of Self-Styled Crypto 'Godfather' – Decrypt

A former Los Angeles County sheriff’s deputy was sentenced to 63 months in federal jail for serving to a crypto entrepreneur who referred to as himself “Godfather” extort rivals and stage a false arrest tied to monetary disputes, federal prosecutors introduced Monday.

The deputy, Michael David Coberg, admitted in September final 12 months that he conspired with LA-based entrepreneur Adam Iza to strain folks concerned in enterprise conflicts with him.

“Coberg swore an oath to uphold the Structure and legal guidelines of the U.S.,” prosecutors wrote in a sentencing memorandum. “As an alternative, [he] betrayed that oath and people he swore to guard, abusing the superior energy of his badge. And he did so for an all-too-common purpose: greed.”

Coberg’s sentencing marks the most recent growth within the federal prosecution tied to Iza and associates accused of utilizing intimidation and police authority to strain rivals in monetary disputes.

Crypto Godfather

Iza, who glided by his moniker “Godfather,” gained notoriety after federal prosecutors accused him of operating fraudulent advertising and marketing and crypto schemes whereas surrounding himself with off-duty deputies who acted as bodyguards and advisers throughout disputes witLos Angelsh enterprise rivals.

Investigators say he paid regulation enforcement officers giant sums to accompany him, collect info on opponents, and strain folks concerned in monetary conflicts.

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

Iza was arrested in September 2024 on fees of conspiracy, wire fraud, and tax evasion tied to a number of alleged fraud schemes, together with a $37 million promoting fraud involving Fb maker Meta.

Prosecutors say the operation generated tens of hundreds of thousands of {dollars}, together with roughly $16 million in crypto, and was linked to different felony exercise, together with a failed house invasion in 2022.

Coberg, in the meantime, was paid no less than $20,000 monthly to behave as a safety guard, adviser, and enforcer whereas nonetheless serving in regulation enforcement, in line with a charging doc filed in U.S. District Court docket in Los Angeles.

In a single incident described within the submitting, a sufferer recognized as “Sufferer L.A.” was delivered to Iza’s Bel Air residence in October 2021 to debate a monetary dispute. In the course of the assembly, Iza displayed firearms, together with an assault rifle, whereas Coberg questioned the sufferer and recognized himself as an active-duty officer, prosecutors mentioned.

The sufferer in the end transferred your complete stability of a Financial institution of America account, about $127,000, to a checking account managed by Iza whereas Coberg remained current through the confrontation, in line with the submitting.

Prosecutors additionally described a separate plan to retaliate in opposition to one other rival by orchestrating a false arrest.

Iza and Coberg labored with a lady who inspired the sufferer to journey from Florida to Los Angeles and later organized a visitors cease at a preplanned location the place one other sheriff’s deputy arrested the sufferer after medicine had been discovered within the automobile.

The duo drove to the scene to look at the arrest and recorded video of it from their automotive. Messages despatched afterward mocked the sufferer and referenced the arrest, in line with prosecutors.

Iza has pleaded responsible and stays in federal custody whereas awaiting sentencing in federal courtroom in Los Angeles as prosecutors course of further kidnapping fees filed in Connecticut final 12 months.