Michaela
Ex-deputy Michael Coberg, a former Los Angeles County Sheriff’s deputy and helicopter pilot, has pleaded guilty to federal conspiracy charges for helping Adam Iza, a self-proclaimed crypto entrepreneur, orchestrate extortion schemes and a staged drug arrest targeting a business rival.
Key points:
- Former LASD deputy Michael Coberg pled guilty to federal conspiracy charges for aiding Adam Iza in extortion schemes and a staged drug arrest.
- Coberg acted as both a business partner and advisor to Iza, receiving $20,000 monthly and participating in schemes beyond security, including planning a steroid business.
- The case emphsaizes broader concerns about law enforcement misuse of power in cryptocurrency-related operations, highlighting the need for stronger oversight and transparency.
The Department of Justice (DOJ) confirmed in a press release that Coberg pled guilty to a two-count federal information charge charging him with conspiracy to commit extortion and conspiracy against rights. While serving as a deputy with the Los Angeles County Sheriff’s Department (LASPD), Coberg allegedly collaborated with Iza, a self-styled “Godfather” who was involved in cryptocurrency schemes and fraudulent marketing.
Additionally, Coberg’s arrangement with Iza went beyond providing security, positioning him as a business partner and advisor. At one stage, the two even discussed launching a business selling anabolic steroids. Coberg reportedly received a monthly payment of at least $20,000 from Iza for his involvement.
In October 2021, the ex-deputy allegedly joined other security personnel to detain a victim involved in a financial dispute with Iza. The victim was reportedly transported to Iza’s residence, where they were threatened with an assault rifle.
During the incident, Coberg identified himself as an active-duty law enforcement officer and questioned the victim regarding the financial dispute between Iza and the victim’s business partner.
In September 2021, Coberg conspired with Iza and others to lure a victim from Miami to Los Angeles under the pretense of a romantic meeting. The ex-deputy helped arrange the trip, including transport and drug purchases, as part of a scheme to have the victim arrested and further Iza’s financial dispute.
This case follows a pattern of law enforcement abuse of power. Paul Chowles, a former UK National Crime Agency (NCA) officer, was previously sentenced for stealing and hiding 50 Bitcoin seized during an investigation into Silk Road 2.0, the infamous dark web marketplace.
Chowles played a key role in the NCA’s investigation of the original Silk Road marketplace, a joint operation with the U.S. FBI that led to multiple UK drug convictions. In May 2017, 50 of the 97 Bitcoins seized from a wallet linked to Ross White were transferred in two transactions to a public address.
To conceal the source, the funds were split into smaller amounts and routed through Bitcoin Fog, a mixer known for laundering illicit cryptocurrency. Chowles then converted the Bitcoins into pounds, withdrawing cash directly or via debit cards linked to Cryptopay and Wirex accounts he had set up.
The case spotlights ongoing challenges for law enforcement agencies managing digital assets, emphasizing the need for stronger oversight and transparency in handling cryptocurrency seized during criminal investigations. It also serves as a cautionary tale about the risks posed when individuals exploit positions of trust in emerging financial technologies.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
