A former leader of a Las Vegas corporation has acknowledged engaging in a six-year investment fraud scam that embezzled millions of dollars from gullible investors. According to a statement from the United States Attorney’s Office for the District of Nevada, Mykalai Kontilai, the leader of Collector’s Coffee Inc., pled guilty to wire fraud after his wrongdoings were exposed by a thorough federal investigation. Through his Vegas-based business, which purported to be ready to establish an online auction platform, Kontilai, who is now 55, defrauded more than $23 million.
Kontilai admitted to creating several incentives to entice investors to participate in his purportedly successful company in the confession presented in court records. He claimed to have invested millions of his personal fortune in the company and guaranteed that the money would only be used for business purposes. However, this claim was as phony as his promise that he would not receive a salary. By diverting about $6.1 million into his personal indulgences, such as expensive items, homes, and cars, Kontilai betrayed the trust that had been placed in him. When the U.S. Securities and Exchange Commission (SEC) extensively examined his alleged misappropriation of investor funds in 2017, the ploy was exposed.
Kontilai attempted to thwart the SEC’s inquiry in addition to his fraudulent investment scheme. He achieved this by lying under oath and fabricating papers, which resulted in more accusations in the current case, which was started on June 3, 2020, as well as another one in the District of Colorado on March 10, 2020. Kontilai escaped to Russia before these accusations could bring him to justice. When German authorities detained him in 2023 after receiving an Interpol Red Notice, his legal evasion came to an end. This year, he was extradited to the United States to face consequences for his acts.
At sentencing on December 4, the government will drop the Colorado charges as part of his plea agreement. A federal judge will soon decide whether to sentence Kontilai to the maximum penalty of 20 years in prison for the wire fraud count. Principal Deputy Assistant Attorney General Nicole M. Argentieri said that the FBI and IRS-Criminal Investigation worked together to indict him and reach the plea agreement that followed, with a major help from the Justice Department’s Office of International Affairs.
The FBI and IRS-CI are now investigating the situation. Prosecutors include Assistant U.S. Attorney Jessica Oliva for the District of Nevada and Trial Attorneys Sara Hallmark and Brandon Burkart of the Criminal Division’s Fraud Section, with invaluable help from former FRD Trial Attorney Emily Scruggs.
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