A former deputy of the Los Angeles County Sheriff’s Department has pleaded guilty to multiple federal conspiracy charges, revealing a shocking collaboration with a cryptocurrency businessman accused of extortion and false arrests.
Michael David Coberg, 44, entered his plea on federal conspiracy charges, including conspiracy to commit extortion and conspiracy against rights, as reported by the U.S. Attorney’s Office for the Central District of California. Coberg had recently separated from the Sheriff’s Department.
This case involves Adam Iza, a self-proclaimed “crypto godfather” who allegedly used law enforcement personnel as enforcers in his fraudulent schemes. Iza has been in federal custody since September 2024, after pleading guilty to related charges, with his sentencing scheduled for December 15. Coberg reportedly earned at least an additional $20,000 per month while acting as Iza’s business partner and advisor during his tenure with the Sheriff’s Department.
Court documents outline two significant incidents involving Coberg’s conspiracy with Iza. In October 2021, Coberg allegedly accompanied security personnel to retrieve an individual identified only as “L.A.” in court filings, who was embroiled in a financial conflict with Iza. Coberg, presenting himself as a law enforcement official, interrogated L.A. about the matter while Iza brandished firearms, compelling L.A. to transfer $127,000 to one of Iza’s accounts. Following this coercive encounter, L.A.’s passport was confiscated, and he was returned to his hotel under duress.
Earlier, in September 2021, Coberg also conspired to lure Miami resident Ryan Chapell to Los Angeles, setting him up for a false arrest involving illegal narcotics. Chapell is currently pursuing legal action against Los Angeles County and Iza, seeking damages exceeding $50 million. The lawsuit describes a situation where Chapell, who was hired to organize Iza’s birthday party, found himself threatened at gunpoint over a financial disagreement shortly after the event. Allegations suggest that multiple armed deputies were present during this ordeal.
After the financial dispute escalated, Coberg and other co-conspirators purportedly tricked Chapell’s ex-girlfriend into reaching out again, prompting Chapell’s flight to Los Angeles. This plan included buying him a plane ticket and setting up a sequence that would lead to his arrest on drug-related charges. Law enforcement, allegedly misled by Coberg and another deputy, conducted a traffic stop and arrested Chapell, during which Coberg was seen photographing the incident from a nearby vehicle.
Coberg’s involvement in these criminal activities did not go unnoticed, with a fellow deputy unwittingly taking part in the arbitrary arrest under false pretenses. Coberg has been accused of conveying misleading information to this deputy, resulting in the discovery of drugs in the vehicle linked to Chapell.
Coberg’s case represents a broader scandal, with former sheriff’s deputy Christopher Michael Cadman also implicated. Cadman has already pleaded guilty and awaits sentencing in January 2026.
Coberg is scheduled to be sentenced on February 17, facing a potential maximum of 30 years in federal prison if convicted on all counts. The ongoing investigation underscores the extensive ramifications of corruption within law enforcement and the lengths to which individuals will go for personal gain within the burgeoning cryptocurrency sector.
