A Nevada man, Mykalai Kontilai, pleaded guilty to one count of wire fraud in connection with a fraudulent investment scheme. This scheme led to the theft of over $6.1 million from investors. Kontilai, who previously went by Michael Contile, ran the scheme through his company Collector’s Coffee Inc., also known as Collector’s Café.
Court documents reveal that between 2012 and 2018, Kontilai misled investors into believing their funds would be used for legitimate business purposes. He falsely claimed that he had personally invested millions in the company and did not take a salary. In reality, Kontilai diverted approximately $6.1 million for personal use, including purchasing luxury items and properties.
The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai around 2017 for misappropriating investor funds. During this investigation, Kontilai obstructed justice by forging documents sent to the SEC and lying under oath. He was charged on June 3, 2020, in this case and separately on March 10, 2020, in Colorado.
Before charges were filed but while under investigation, Kontilai fled to Russia. He was arrested on an Interpol Red Notice in Germany in 2023 and extradited back to the United States to face charges in May.
As part of a plea agreement reached with prosecutors, the government will seek dismissal of the Colorado case at sentencing. Kontilai's sentencing is scheduled for December 4th; he faces up to 20 years in prison upon conviction.
The announcement came from Principal Deputy Assistant Attorney General Nicole M. Argentieri; U.S. Attorney Jason M. Frierson for the District of Nevada; FBI Special Agent Spencer L. Evans; and IRS Criminal Investigation Special Agent Carissa Messick.
Both the FBI and IRS-CI are involved in investigating this case while significant assistance came from Justice Department’s Office of International Affairs regarding securing extradition from Germany.
Trial Attorneys Brandon Burkart and Sara Hallmark from Fraud Section along with Assistant U.S Attorney Jessica Oliva prosecuted this case with former Trial Attorney Emily Scruggs providing valuable support during proceedings.
