A former Los Angeles County Sheriff’s deputy has been sentenced to over five years in federal prison for aiding a jailed crypto founder. Michael Coberg was convicted of conspiracy for helping Adam Iza, founder of the crypto trading platform Zort, extort a business rival and arrange a drug possession arrest. He was ordered to pay $127,000 in restitution.
A California federal court sentenced former deputy Michael Coberg to 63 months in prison. The court also ordered him to pay $127,000 in restitution for his role in extortion conspiracies, as stated by the U.S. Attorney’s office.
Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. Prosecutors said he was paid at least $20,000 monthly for security by Adam Iza, known as “The Godfather.”
In October 2021, Coberg helped bring a man, identified as “L.A.,” to Iza’s house. Iza then recorded a video of L.A. transferring $127,000 to his bank account while Coberg stood watch.
The pair later went to a shooting range where Iza held L.A. at gunpoint. Iza demanded the victim transfer more money during this incident.
Coberg also conspired to have a second victim, “R.C.,” arrested on drug charges. This followed a prior dispute where R.C. was held at gunpoint to transfer $25,000 to Iza.
Coberg helped set up a sham sting where R.C. was lured to Los Angeles. R.C. was then arrested by a deputy that Coberg had tipped off.
Prosecutors said in their sentencing memorandum that Coberg abused “the awesome power of his badge.” They noted he acted for an “all-too-common reason: greed.”
Adam Iza pleaded guilty in January 2025 to extorting multiple people. The founder of Zort is currently awaiting his sentencing.
