LAS VEGAS — A Nevada man admitted in federal court Thursday to orchestrating a multimillion-dollar investment fraud scheme, defrauding victims of more than $6.1 million over six years.
Mykalai Kontilai, 55, of Las Vegas, pleaded guilty to one count of wire fraud for his role in the scheme, which involved soliciting investments for his company, Collector’s Coffee Inc., under false pretenses. Prosecutors said Kontilai used fraudulent claims to raise approximately $23 million from investors between 2012 and 2018, while diverting a substantial portion of the funds for personal use.
Court records show Kontilai promised investors that Collector’s Coffee was launching an online auction platform for collectibles, including Hollywood and sports memorabilia. He falsely claimed he had personally invested millions in the company, took no salary, and that funds would be used exclusively for business purposes. Instead, he misappropriated $6.1 million for personal purchases, such as luxury goods, vehicles, and real estate.
The U.S. Securities and Exchange Commission began investigating Kontilai in 2017, accusing him of misusing investor funds. To obstruct the investigation, Kontilai forged documents and lied under oath to the SEC. In 2020, he was charged in two federal cases: one in Nevada and another in Colorado. Before being apprehended, Kontilai fled to Russia but was arrested in Germany in 2023 on an Interpol Red Notice and extradited to the United States.
Kontilai’s sentencing is set for Dec. 4. He faces a maximum penalty of 20 years in federal prison. Federal authorities credited the FBI, IRS Criminal Investigation, and the Justice Department’s Office of International Affairs for their work on the case, including securing Kontilai’s extradition.
This plea brings closure to a case involving years of deception and millions in stolen funds.