Mykalai Kontilai, the former president and CEO of a Las Vegas-based company, Collector’s Coffee Inc., has pleaded guilty to one charge of wire fraud. He is accused of stealing millions of dollars from investors who believed they were helping launch an online auction for collectible items like sports and Hollywood memorabilia. Instead, Kontilai took the money for himself, buying luxury items like expensive cars, apartments, and other personal goods.
This investment fraud case is a serious one, where Kontilai raised around $23 million from investors. He told them the money would be used to grow his business, Collector’s Coffee, but instead, he used about $6.1 million for his personal expenses. He also lied about his involvement in the company, claiming that he had invested his own millions and wasn’t taking a salary. None of this was true, and his company never used the funds the way they were meant to be used.
How Mykalai Kontilai’s Scheme Worked
The fraud scheme started in 2012 and lasted until 2018. During this time, Mykalai Kontilai made a series of false statements to convince people to invest in Collector’s Coffee. He promised investors that their money would help launch an online auction house for third-party collectibles. The company’s goal seemed legitimate, but Kontilai was only interested in lining his own pockets.
Many of the investors were likely unaware that they were being deceived. Kontilai told them that he had invested millions of dollars of his own money into the business and that he wasn’t taking any salary, which made the business appear more trustworthy. However, after the investors gave him their money, Kontilai used a large portion of it to fund his lavish lifestyle, including buying luxury items and real estate. Instead of building a successful business, Kontilai took advantage of his investors’ trust for his personal gain.
Physician Lilit Gagikovna Baltaian Pleads Guilty to Major Medicare Fraud Scheme
Investigations and Arrest
In 2017, the U.S. Securities and Exchange Commission (SEC) began investigating Mykalai Kontilai for stealing investor funds. As the investigation progressed, Kontilai tried to cover up his actions. He forged documents and lied under oath to the SEC, attempting to obstruct their efforts. This only made the case more complicated and led to more serious charges against him.
After being charged in 2020, Kontilai fled the United States and escaped to Russia. However, the law was still on his trail. In 2023, he was arrested in Germany after an Interpol Red Notice was issued for his capture. Once he was apprehended, he was sent back to the United States to face the charges against him. Now, after pleading guilty, he will be sentenced in December. He faces up to 20 years in prison for his actions.
The case was investigated by the FBI and the IRS Criminal Investigation Unit. They worked together to uncover the full extent of Kontilai’s fraud. The Justice Department’s Office of International Affairs also played a key role in helping secure his extradition from Germany.
This case highlights the risks of investment fraud, where people are misled by false promises and end up losing their hard-earned money. While Kontilai’s actions were extreme, the case serves as a reminder that scams and fraudulent schemes can happen to anyone, and it’s important to be cautious before investing in unfamiliar businesses.
