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Corrupt LA Deputy Weaponized Badge for ‘Crypto Godfather’ in Terrifying Extortion Racket

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A former Los Angeles County Sheriff’s Department deputy has admitted to abusing his badge and authority to assist a cryptocurrency promoter in extortion and fraud schemes.

Michael David Coberg, 44, of Eastvale, pleaded responsible on Tuesday to federal conspiracy expenses after prosecutors detailed how he conspired with 25-year-old Adam Iza, a self-styled Beverly Hills “Godfather” recognized for working crypto scams.

According to court docket filings, Coberg was paid not less than $20,000 per 30 days by Iza to behave as extra than simply safety. The two mentioned launching a steroid enterprise collectively and labored hand in hand to intimidate rivals.

Their ways allegedly included threats, extortion, and even a staged drug arrest meant to border one in all Iza’s opponents.

The case exhibits how criminals in the crypto house have typically sought legitimacy or muscle by ties with legislation enforcement. For Coberg, it meant leveraging his standing as each a sheriff’s deputy and a helicopter pilot to bolster Iza’s schemes.

Authorities say Coberg’s responsible plea brings him nearer to sentencing, although particulars of potential jail time haven’t but been finalized. Iza, in the meantime, continues to face a number of fraud and extortion expenses related to his cryptocurrency operations.

Ex-LA Deputy and Crypto Promoter Face Prison in Violent Extortion and Kidnapping Conspiracy

The extent of the conspiracy between former Los Angeles County deputy Michael David Coberg and cryptocurrency promoter Adam Iza grew to become clearer this week as prosecutors revealed disturbing particulars of the schemes that left victims financially ruined and bodily intimidated.

In October 2021, Coberg personally assisted Iza in coercing a sufferer, recognized in filings solely as “L.A.,” throughout a gathering at Iza’s residence.

Prosecutors say Iza staged the encounter by inserting firearms on show, whereas Coberg bolstered the intimidation by figuring out himself as an active-duty sheriff’s deputy and questioning the sufferer. The strain labored—L.A. transferred $127,000 on to Iza’s account that day.

The subsequent morning, the ordeal escalated. At a personal capturing vary, Iza reportedly held the sufferer at gunpoint whereas making additional monetary calls for. L.A.’s enterprise associate in the end despatched extra money to safe his launch, in line with investigators.

Just weeks earlier, Coberg additionally participated in one other elaborate plot focusing on a second sufferer, “R.C.” Court data present the conspirators tricked R.C. into touring from Miami to Los Angeles utilizing guarantees of a romantic reunion along with his ex-girlfriend.

Once in California, Coberg coordinated with one other deputy, Christopher Michael Cadman, to orchestrate a fabricated visitors cease in Paramount.

Deputies allegedly planted narcotics in R.C.’s belongings, ensuing in his arrest. Coberg, prosecutors mentioned, drove by the scene as Iza recorded video and images of the staged arrest for leverage.

Cadman has already pleaded responsible to associated federal expenses and is scheduled for sentencing in January 2026. Coberg, who entered responsible pleas to conspiracy to commit extortion and conspiracy in opposition to rights, now faces a possible 30-year federal jail sentence when he returns to court docket on February 17, 2026.

Iza, the so-called “Godfather” behind the schemes, stays in federal custody and is awaiting sentencing on December 15. The FBI and IRS Criminal Investigation are main the case with help from the Los Angeles County Sheriff’s Department.

The case has drawn sharp consideration to how deeply organized fraud networks can penetrate legislation enforcement ranks. Federal prosecutors mentioned Coberg’s actions not solely betrayed his oath as a deputy but in addition weaponized the authority of his badge in opposition to non-public residents in the service of a crypto-fueled felony enterprise.

Growing Numbers of Fraudulent Crypto Schemes

In August 2024, the SEC charged brothers Jonathan and Tanner Adam with a $60 million Ponzi scheme, accusing them of luring greater than 80 traders with a faux crypto buying and selling bot. The bot promised 13.5% month-to-month returns between January 2023 and June 2024.

Every week earlier, Montenegrin police arrested Roman Ziemian, co-founder of the alleged $21 million crypto fraud scheme FutureNet, in Podgorica, the place he was dwelling beneath a false identification. Ziemian was wished in South Korea and Poland on fraud, cash laundering, and theft expenses.

A month later, a U.S. federal court docket ordered New York resident William Koo Ichioka to pay more than $36 million in restitution and penalties for working a fraudulent cryptocurrency and foreign exchange funding scheme. His scheme promised unrealistic returns, after a case introduced by the Commodity Futures Trading Commission (CFTC).

Institutions and governments, nevertheless, have been deploying measures to curb fraudulent schemes. Circle, issuer of the $74 billion USDC stablecoin, is exploring refund options for disputed or fraudulent payments to align blockchain with conventional finance.

Meanwhile, the Reserve Bank of India has mandated dynamic authentication for all domestic digital payments by April 1, 2026. Authority requires not less than one distinctive issue, resembling an OTP or biometric, per transaction to curb fraud and lengthen protections to cross-border card use.

The publish Corrupt LA Deputy Weaponized Badge for ‘Crypto Godfather’ in Terrifying Extortion Racket appeared first on Cryptonews.

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