In a shocking turn of events, a former Los Angeles County Sheriff’s Department deputy has been sentenced to 63 months in prison and ordered to pay $127,000 in restitution for his role in a series of extortion schemes orchestrated by Adam Iza, the founder of the crypto trading platform Zort, known as ‘The Godfather.’
Michael Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights, admitting to using his position of power to facilitate Iza’s illegal activities. Coberg’s involvement included assisting in the extortion of a rival and arranging a drug possession arrest of another individual, according to the Los Angeles U.S. Attorney’s office.
Abuse of Power for Personal Gain
Prosecutors detailed Coberg’s extensive involvement in Iza’s criminal activities, highlighting the former deputy’s willingness to abuse his badge for personal profit. Coberg was reportedly paid at least $20,000 a month by Iza for his security services, a sum that he used to finance his own lifestyle while aiding in the coercion and intimidation of Iza’s targets.
The Extortion of L.A.
In October 2021, Coberg played a pivotal role in the extortion of a victim identified only as “L.A.”, who was involved in a financial dispute with Iza. Coberg and a team of accomplices picked up L.A. and brought him to Iza’s house, where Iza recorded a video of L.A. transferring $127,000 to Iza’s bank account while Coberg stood watch. The situation escalated when Coberg and Iza took L.A. to a shooting range, where Iza held L.A. at gunpoint and demanded additional money.
The Drug Sting on R.C.
Coberg’s criminal activities extended beyond financial extortion. He also conspired with Iza and others to set up a victim, identified as “R.C.,” for a drug possession arrest. R.C. had been involved in a dispute where Iza, along with Christopher Cadman—another former Sheriff’s Department deputy who pleaded guilty in August—and another deputy, held R.C. at gunpoint to force him to transfer $25,000 to Iza.
To further intimidate R.C., Coberg and his co-conspirators orchestrated a sham sting operation. They convinced R.C.’s ex-girlfriend to call him and arrange a meeting in Los Angeles under the pretense of using drugs together. When R.C. arrived at the airport, he was picked up, driven to get drugs, and then arrested by a Sheriff’s Department deputy whom Coberg had tipped off.
Legal Repercussions and Broader Implications
In their sentencing memorandum, prosecutors emphasized that Coberg had abused “the awesome power of his badge” for greed, a stark reminder of the potential for corruption within law enforcement. The case highlights the dangerous intersection of crypto crime and public officials, raising serious concerns about the integrity of law enforcement and the need for stricter oversight.
Adam Iza, the mastermind behind these schemes, pleaded guilty in January 2025 to multiple counts of extortion and is currently awaiting sentencing. The case against Iza and his accomplices serves as a cautionary tale about the dark side of the crypto world and the lengths some individuals will go to for personal gain.
Looking Forward
As the crypto industry continues to evolve, the need for robust legal and regulatory frameworks becomes increasingly evident. The Coberg and Iza cases underscore the importance of vigilant oversight and the prosecution of those who exploit their positions for criminal purposes. Moving forward, it is crucial for both the crypto community and law enforcement to work together to prevent such abuses of power and ensure a safer, more transparent digital financial landscape.
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