Las Vegas Resident Pleads Guilty in $6.1 Million Investment Fraud Case

According to an announcement by the Office of Public Affairs of the U.S. Department of Justice (DOJ), Mykalai Kontilai, formerly known as Michael Contile, has pleaded guilty to one count of wire fraud. Kontilai, 55, from Las Vegas, admitted to his role in a years-long fraudulent scheme in which he stole more than $6.1 million from investors.

Court documents reveal that Kontilai orchestrated an investment fraud scheme through his company, Collector’s Coffee Inc. The company, incorporated in California and headquartered in Las Vegas, was purportedly set to launch an online auction house for third-party-owned collectibles, such as Hollywood and sports memorabilia.

From 2012 to 2018, Kontilai made numerous false and misleading statements to entice victims into investing in Collector’s Coffee. He claimed that investor funds would be used for legitimate business purposes, that he had personally invested millions of his own money in the company, and that he did not take a salary. These misrepresentations helped him raise approximately $23 million from investors. Instead of using the funds as promised, Kontilai stole $6.1 million for personal use, like purchasing luxury goods, apartments, and vehicles.

The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai around 2017 for misappropriating investor funds. Kontilai obstructed the investigation by forging documents and lying under oath to the SEC. He was charged in connection with this conduct on June 3, 2020, in the present case, and separately in the District of Colorado on March 10, 2020. Before charges were filed, Kontilai fled to Russia but was eventually arrested on an Interpol Red Notice in Germany in 2023. He was extradited to the United States to face the charges in May.

Kontilai pleaded guilty to one count of wire fraud and is scheduled for sentencing on December 4. He faces a maximum penalty of 20 years in prison.