A former deputy sheriff of the Los Angeles County Sheriff’s Department has been sentenced to over 5 years in prison for abusing his position to assist in extortion and staging false arrests to harm business rivals.
According to a Monday announcement from the U.S. Department of Justice, defendant Michael David Coberg (44 years old) was sentenced to 63 months in prison and ordered to pay $127,000 in restitution after pleading guilty to conspiracy to extort and deprivation of civil rights.
Prosecutors stated that Coberg abused his role as a deputy sheriff and helicopter pilot to assist Adam Iza — a crypto entrepreneur who calls himself the “Crypto Godfather” — in targeting business competitors.
The incident took place in 2021 and involved multiple threats aimed at resolving financial disputes. In one case, Coberg accompanied armed individuals to confront the victim and stood by while Iza threatened violence and coerced the victim into transferring $127,000. The victim’s passport was also confiscated before being released.
Authorities also described another plot in which Coberg and accomplices staged a fake arrest. The group lured the victim from Miami to Los Angeles, demanded the purchase of illegal substances, and then arranged for law enforcement to stop the vehicle and make an arrest.
“Coberg swore to defend the Constitution and laws of the United States, but betrayed that oath out of greed,” the prosecutor emphasized.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Believe Founder Faces Rug Pull Charges as DOJ Opens $40M OneCoin Victim Compensation
Ben Pasternak, founder of the Solana platform Believe, faces indictment for an alleged rug pull scheme involving billions in trades and millions in fees. Meanwhile, the DOJ offers compensation to OneCoin victims, with a filing deadline of June 30, 2026.
GateNews4m ago
Encouraging innovation! A U.S. judge bans Arizona’s regulators from prediction markets and suspends the prosecution of Kalshi
A U.S. federal district court has ruled that Arizona is barred from using its gambling law to sue the prediction market platform Kalshi, finding that the Federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, and Kalshi maintains that its business falls under financial products rather than traditional gambling. Courts in different states have issued differing rulings on prediction markets, and the Trump family has also expressed support for prediction markets.
CryptoCity1h ago
Can bypass Financial Supervisory Commission (FSC) rules to buy crypto by card? Odin Travel launches a U.S. card-based crypto purchase service, Wallet Pro.
OwlPay and Wallet Pro services launched by Odin Tithing use stablecoin technology to enable B2B cross-border payments, and partner with international payment giants to demonstrate its expansion ambitions in the fintech space. Through offshoring operations, Odin Tithing bypasses Taiwan’s regulatory restrictions, offering fast virtual-asset trading; meanwhile, faced with the newly promulgated Virtual Asset Services Act, it is expected to become a reference template for other foreign-funded companies entering the Taiwan market.
CryptoCity2h ago
Polymarket reviews and weeds out early-stage projects in its ecosystem, targeting insider trading and market manipulation behaviors
Polymarket announced an audit of some of the onboarded startup projects that have been accused of using allegedly insider trading account information to steer users into making trades. The move is intended to strengthen compliance management and address external concerns about the risks of insider trading.
GateNews2h ago
Encourage innovation! A U.S. judge bans Arizona-regulated prediction markets and suspends prosecution against Kalshi.
A U.S. federal district court has ruled that Arizona is barred from using the gambling law to prosecute the prediction market platform Kalshi, finding that the federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the line between state and federal authority over financial market regulation, while Kalshi maintains that its business is a financial product rather than traditional gambling. Decisions on prediction markets vary from state to state, and the Trump family has also expressed support for prediction markets.
CryptoCity4h ago
Is it possible to bypass the Financial Supervisory Commission’s rules on using credit cards to buy crypto? Odingding promotes the Wallet Pro crypto purchase service with a U.S. debit card
OwlPay and Wallet Pro services launched by Oding Ding use stablecoin technology to enable B2B cross-border payments, and they have partnered with international payment giants to showcase their expansion ambitions in the fintech space. By operating from abroad, Oding Ding bypasses Taiwan’s regulatory restrictions, offering fast virtual-asset trading; at the same time, faced with the newly enacted Virtual Asset Services Act, it may in the future become a reference template for other foreign-funded companies entering the Taiwan market.
CryptoCity5h ago