Mykalai Kontilai, 55, a Nevada man formerly known as Michael Contile, has pleaded guilty to one count of wire fraud for orchestrating a fraudulent scheme that defrauded investors of more than $6.1 million, the Department of Justice (DOJ) announced today.
Kontilai, who ran a company called Collector’s Coffee Inc., also known as Collector’s Café, lured investors into his business by promising an online auction platform for collectibles, such as Hollywood and sports memorabilia. The company was incorporated in California and headquartered in Las Vegas.
From 2012 to 2018, Kontilai made numerous false and misleading statements to potential investors. He claimed that the funds raised would solely be used for legitimate business purposes and that he had personally invested millions of dollars in the company. Additionally, Kontilai misled investors by stating that he did not take a salary.
As a result of these misrepresentations, Kontilai successfully raised around $23 million in investments. However, rather than using the money as promised, he misappropriated approximately $6.1 million for personal expenses, including luxury goods, vehicles, and apartments.
The United States Securities and Exchange Commission (SEC) began investigating Kontilai in 2017 for the misuse of investor funds. During the investigation, Kontilai obstructed the probe by forging documents and lying under oath, the DOJ revealed.
Kontilai was charged in June 2020 for his role in the fraudulent scheme. He had fled to Russia before charges were filed but was arrested in Germany in 2023 after being located through an Interpol Red Notice.
