LAS VEGAS In federal court on Thursday, a Nevada man acknowledged planning a multimillion-dollar investment fraud scheme that defrauded victims of over $6.1 million over a six-year period.
Mykalai Kontilai, 55, of Las Vegas, entered a guilty plea to one count of wire fraud for his involvement in the scam, which entailed using false pretenses to seek investments for his business, Collector’s Coffee Inc. According to the prosecution, Kontilai raised almost $23 million from investors between 2012 and 2018 by making false statements and using a sizable amount of the money for personal expenses.
According to court documents, Kontilai assured investors that Collector’s Coffee would start an online marketplace for the sale of collectibles, such as sports and movie memorabilia. He made up claims that he had personally contributed millions of dollars to the business, that he did not receive a salary, and that the money would only be utilized for operations. As an alternative, he embezzled $6.1 million to buy luxury items, cars, and real estate for himself.
In 2017, Kontilai was accused of misusing investor cash, and the U.S. Securities and Exchange Commission started looking into the matter. Kontilai lied to the SEC under oath and falsified papers to thwart the probe. He was charged in two federal cases in 2020, one in Colorado and one in Nevada. Kontilai escaped to Russia prior to his capture, but in 2023 he was detained in Germany on an Interpol Red Notice and extradited to the US.
On December 4, Kontilai will be sentenced. He might spend up to 20 years in federal prison. The FBI, IRS Criminal Investigation, and the Justice Department’s Office of International Affairs were commended by federal officials for their efforts in the case, which included obtaining Kontilai’s extradition.
This plea resolves a case that involved millions of dollars in stolen funds and years of deceit.
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