A Nevada man has been sentenced to 51 months in prison and ordered to pay $6.1 million in restitution for his involvement in a fraudulent investment scheme. Mykalai Kontilai, formerly known as Michael Contile, was the president and CEO of Collector’s Coffee Inc., operating as Collector’s Café, a company based in Las Vegas.
Court documents reveal that from 2012 to 2018, Kontilai engaged in an investment fraud scheme by making false representations to investors about Collector’s Coffee. He claimed the company was poised to launch an online auction platform for collectibles such as Hollywood and sports memorabilia. These misleading statements included assurances that investor funds would be used for legitimate business purposes, that he had invested millions of his own money into the company, and that he did not take a salary. As a result, Kontilai raised approximately $23 million from investors but misappropriated about $6.1 million for personal expenses including luxury goods and properties.
The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai around 2017 after suspicions arose regarding his misuse of investor funds. During the investigation, Kontilai obstructed justice by forging documents sent to the SEC and lying under oath. He faced charges related to this conduct on June 3, 2020, in this case and earlier on March 10, 2020, in a separate case in Colorado.
Kontilai fled to Russia during the investigation but was apprehended on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face charges last May.
On November 21, Kontilai pleaded guilty to one count of wire fraud as part of a plea agreement leading to the dismissal of charges from the Colorado case.
The announcement was made by 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.
The FBI and IRS-CI conducted investigations into this case with significant assistance from the Justice Department’s Office of International Affairs which helped secure Kontilai's extradition from Germany.
Trial Attorneys Brandon Burkart and Sara Hallmark from the Criminal Division’s Fraud Section along with Assistant U.S. Attorney Jessica Oliva prosecuted this case with former Fraud Section Trial Attorney Emily Scruggs providing valuable assistance.
