LAS VEGAS — Mykalai Kontilai, 55, of Las Vegas, pleaded guilty on Monday to one count of wire fraud in connection with a multi-year investment fraud scheme that defrauded investors of more than $6.1 million. Kontilai, formerly known as Michael Contile, used his company, Collector’s Coffee Inc., to solicit millions of dollars from investors, falsely claiming he was building an online auction platform for collectibles such as Hollywood and sports memorabilia.
From 2012 to 2018, Kontilai raised approximately $23 million for Collector’s Coffee by making numerous false and misleading statements to potential investors. He falsely assured them that their funds would be used for legitimate business purposes, including the development of the e-commerce auction site. He also claimed that he had personally invested millions of dollars into the company and that he was not taking a salary.
However, rather than using the funds as promised, Kontilai diverted roughly $6.1 million for his personal use. According to court documents, he spent the stolen money on luxury goods, high-end vehicles, and real estate, including purchasing luxury apartments and paying for private school tuition.
The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai in 2017, uncovering evidence of fraud and misappropriation of funds. During the investigation, Kontilai obstructed the SEC’s efforts by forging documents and providing false testimony. In 2020, he was charged with multiple offenses, including securities fraud and money laundering, in both Nevada and Colorado.
While under investigation, Kontilai fled the United States and traveled to Russia to avoid prosecution. He was arrested in Germany in 2023 after being placed on Interpol’s most-wanted list, and was subsequently extradited back to the U.S. to face the charges. As part of his plea agreement, the government has agreed to dismiss the charges in Colorado at the time of sentencing.
Kontilai’s fraudulent activities were detailed in two separate grand jury indictments, which accused him of using investor funds for personal gain, including withdrawing large sums of money for himself. On one occasion, he allegedly withdrew $770,000 in cash from a company account, claiming it was for business expenses when it was actually for his personal use. He also used investor money to buy a Cadillac with a custom vanity plate reading “MYKALAI.”
In a separate case, Kontilai was charged with obstruction of justice for tampering with documents and providing false statements to investigators during the SEC’s probe. Among the fabricated documents was a bank statement that he altered to falsely claim he had loaned the company $5 million, attempting to justify his use of investor funds to repay himself.
Kontilai faces a maximum sentence of 20 years in federal prison. A federal district court judge will determine his sentence at a hearing scheduled for December 4, taking into account the U.S. Sentencing Guidelines and other relevant factors.
The case highlights the risks of fraudulent investment schemes and the ongoing efforts by federal authorities to hold perpetrators accountable. Investors who were defrauded by Kontilai are expected to be among those impacted by the investigation and the criminal proceedings that followed.
