Simply put
- Michael David Coberg entered a guilty plea related to a conspiracy involving Adam Isa, referred to as a “crypto godfather.”
- The case encompassed armed intimidation, fabricated drug arrests, and misuse of police authority.
- Coberg leveraged his position to harass victims, instigate false arrests, and threaten competitors, according to the U.S. Attorney’s Office for the Central District of California.
The ex-Los Angeles County Sheriff’s aide confessed in federal court to his role in what has been called a sophisticated encryption fraud scheme.
Coberg, from Eastvale, pleaded guilty on Monday to conspiracy charges. According to a statement from the U.S. Attorney’s Office, he worked closely with Adam Isa, who has been implicated in fraudulent crypto ventures, including a now-defunct platform called Zort. Coberg has been in federal custody since September 2024.
The plea agreement revealed that during his time as a sheriff’s officer, Coberg wrongfully detained victims, orchestrated false arrests, and siphoned off significant funds from various sources.
Coberg and Isa had even planned to launch a business related to anabolic steroids.
“It’s unacceptable for law enforcement to use their authority to open doors to corruption and threats,” commented Kadan Stadelmann, CTO at Komodo Platform.
His sentencing is set for February 17, 2026, where Coberg faces a possible 20 years in prison on extortion charges and up to a decade for conspiracy against rights.
Prosecutors allege that, in 2021, Coberg and Isa worked together to extort money from victims and staged a false drug arrest in Paramount, targeting one businessman for $127,000.
“Coberg abused his power to promote a fraudulent scheme, which raises serious concerns,” Stadelmann noted. “He seemed to believe that his authority as a sheriff allowed him to go beyond acceptable limits.”
Stadelmann emphasized how blurred lines between public and private sectors highlight the lack of oversight in corruption cases.
He further remarked that this fraud exceeds typical crypto scams, involving law enforcement in coercive tactics.
Alongside Coberg, Christopher Michael Cudman and David Anthony Rodriguez have also pleaded guilty for their roles with Isa. Cudman is slated for sentencing in January 2026, while Rodriguez’s is set for November 10.
Another former deputy, Eric Chase Savedra, has admitted guilt related to Isa’s operations and is waiting for sentencing.
During the Iza operation, it is reported that Isa illegitimately acquired $16 million, spending about $10 million on luxury items with ex-girlfriend Iris Ramaya Au. Both pleaded guilty in March for failing to report $2.6 million in illegal earnings.
