U.S. Attorney Jason M. Frierson | U.S. Department of Justice
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, also known as Michael Contile, aged 55, orchestrated the fraud through his company Collector’s Coffee Inc., which operated under the name Collector’s Café.
From 2012 to 2018, Kontilai misled investors by making false claims about the company's business prospects. He promised that Collector's Coffee was set to launch an online auction platform for collectibles such as Hollywood and sports memorabilia. Based on these misrepresentations, he raised approximately $23 million from investors. Contrary to his promises that funds would be used for legitimate business purposes and that he had invested millions of his own money without taking a salary, Kontilai diverted around $6.1 million for personal use.
The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai in 2017 for misappropriating investor funds. During this investigation, Kontilai obstructed justice by forging documents sent to the SEC and lying under oath. He faced charges related to this conduct both in Nevada on June 3, 2020, and earlier in Colorado on March 10, 2020.
Before being charged but while still under investigation, Kontilai fled to Russia. He was later arrested on an Interpol Red Notice in Germany in 2023 and extradited back to the United States.
On November 21st, Kontilai pleaded guilty to one count of wire fraud. As part of a plea agreement, charges against him in Colorado were dismissed.
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 case was investigated by the FBI and IRS-CI with assistance from the Justice Department’s Office of International Affairs regarding 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 the case with support from former Fraud Section Trial Attorney Emily Scruggs.
