A Las Vegas man has admitted orchestrating a $6.1 million fraud scheme through his company.
Mykalai Kontilai, 55, owner of Collector’s Coffee Inc, also known as Collector’s Café, pleaded guilty to one count of wire fraud, marking the end of years of investigations and legal proceedings.
The court heard how between 2012 and 2018, Kontilai misled investors by claiming Collector’s Coffee was preparing to launch an online auction platform for collectibles, including Hollywood and sports memorabilia.
His false claims helped him raise approximately $23 million from investors.
However, rather than using the funds for legitimate business purposes, Kontilai siphoned off $6.1 million to finance a lavish lifestyle. His purchases included luxury goods, apartments, and high-end vehicles.
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Misrepresentation and Deception
Court documents revealed Kontilai made several misleading claims to investors, including:
- Stating he had personally invested millions of dollars into Collector’s Coffee.
- Asserting he did not draw a salary from the company.
- Promising funds would solely support business operations.
In reality, these statements were fabricated, and much of the money went directly into his personal accounts.
SEC Investigation and Flight to Russia
The US Securities and Exchange Commission (SEC) began investigating Kontilai in 2017 after uncovering signs of financial misconduct.
As the investigation deepened, Kontilai attempted to obstruct justice by:
- Forging documents and submitting them to the SEC.
- Lying under oath during testimony.
In 2020, Kontilai was charged in two separate cases — one in Nevada and another in Colorado. Before the charges were fully processed, he fled to Russia. He was later arrested in Germany on an Interpol Red Notice and extradited to the United States in May 2023.
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Plea Agreement and Sentencing
As part of his plea deal, prosecutors agreed to dismiss the Colorado charges at sentencing. Kontilai faces up to 20 years in federal prison for the wire fraud charge.
His sentencing is scheduled for Dec. 4. The final decision will be made by a federal district court judge, who will consider sentencing guidelines and other statutory factors.
Collaborative Investigation and Prosecution
The fraud case involved extensive collaboration between multiple agencies:
- FBI Las Vegas Field Office and IRS Criminal Investigation (IRS-CI) led the primary investigation.
- The Justice Department’s Office of International Affairs played a pivotal role in securing Kontilai’s extradition.
- Prosecutors from the Justice Department’s Fraud Section and the U.S. Attorney’s Office for the District of Nevada handled the legal proceedings.
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A Lesson in Accountability
Kontilai’s guilty plea highlights the consequences of financial fraud and international evasion.
As the sentencing date approaches, the case serves as a reminder of the legal system’s commitment to holding fraudsters accountable, regardless of their efforts to escape justice.
