A Las Vegas man has been jailed for 51 months and ordered to pay back $6.1 millon in restitution for a long-running fraud involving his company.
Mykalai Kontilai, 55, from Las Vegas, stole money through his company, Collector’s Coffee Inc., also known as Collector’s Café.
The Fraud
Between 2012 and 2018, Kontilai solicited approximately $23 million from investors by promoting his company as an online auction platform for high-value collectibles such as Hollywood and sports memorabilia.
According to court documents, he made several fraudulent claims, including:
- Misrepresentation of Funds: Assuring investors that their money would be used solely for legitimate business purposes.
- False Personal Investments: Stating that he had personally invested millions into the company.
- Claiming No Salary: Misleading investors into believing he did not take compensation.
Instead, Kontilai stole $6.1 million of investor funds for personal luxury expenses, including:
- Purchasing high-end goods.
- Acquiring apartments and vehicles.
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Obstruction and Flight
In 2017, the US Securities and Exchange Commission (SEC) began investigating Kontilai for misusing investor funds. Kontilai obstructed the investigation by:
- Forging documents submitted to the SEC.
- Providing false testimony under oath.
In 2020, Kontilai fled to Russia while under investigation but was later arrested in Germany on an Interpol Red Notice. He was extradited to the United States in May 2023.
Plea Agreement
On Nov. 21, 2024, Kontilai pleaded guilty to one count of wire fraud. As part of his plea agreement, the government dismissed charges from a related case in the District of Colorado.
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Sentencing and Restitution
Kontilai received:
- Prison Sentence: 51 months.
- Restitution Order: $6.1 million to repay victims.
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Investigation and Prosecution
The case involved extensive collaboration among law enforcement agencies:
- Investigating Agencies: FBI Las Vegas Field Office and IRS Criminal Investigation Phoenix Field Office.
- International Cooperation: The Justice Department’s Office of International Affairs played a key role in securing Kontilai’s extradition.
- Prosecution Team: Trial Attorneys Brandon Burkart and Sara Hallmark, along with Assistant U.S. Attorney Jessica Oliva, led the prosecution.
