A Nevada man pleaded guilty last week to one count of wire fraud stemming from his role in a years-long fraud scheme, during which he stole more than $6.1 million in victim investor funds, officials stated.
Mykalai Kontilai, 55, of Las Vegas, ran a fraud scheme through his company, Collector’s Coffee Inc., also known as Collector’s Café.
From 2012 to 2018, Kontilai lied to investors, claiming the company was launching an online auction platform for collectibles. He falsely promised that funds would be used for business purposes, said he invested millions of his own money, and claimed he took no salary.
He raised $23 million but stole $6.1 million for personal use, including luxury items, apartments, and cars.
The SEC began investigating him in 2017. Kontilai forged documents, lied under oath, and fled to Russia before being arrested in Germany in 2023.
Kontilai was extradited to the U.S., and, as part of a plea deal, the government will dismiss separate charges in Colorado during sentencing.
Kontilai pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Dec. 4 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and IRS-CI are investigating the case.
Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section (FRD) and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case.