A former Las Vegas company executive has admitted to a six-year-long investment fraud scheme that siphoned off millions from unsuspecting investors. Mykalai Kontilai, who was at the helm of Collector’s Coffee Inc., pled guilty to wire fraud after an extensive federal investigation revealed his misdeeds, according to a statement from the United States Attorney’s Office for the District of Nevada. Kontilai, now 55, swindled over $23 million through his Vegas-based company that claimed to be primed to launch an online auction platform.
In the confession laid out in court documents, Kontilai confessed to fabricating multiple incentives for investors to pour money into his supposedly thriving business. He promised that funds would be allocated strictly for business operations, and feigned having injected millions of his personal wealth into the enterprise—a claim that proved to be as hollow as his assurance of not drawing a salary. Subverting the trust placed in him, Kontilai redirected, approximately $6.1 million into his own indulgences—luxury goods, apartments, and vehicles. The ploy was unmasked when the U.S. Securities and Exchange Commission (SEC) peered closely into his alleged misuse of investor funds around 2017.
Adding to his fraudulent investment scheme, Kontilai also tried to obstruct the SEC investigation. He did so forging documents and lying under oath, which led to additional charges in both the present case, initiated on June 3, 2020, and a separate one in the District of Colorado on March 10, 2020. Before these charges could pin him down, Kontilai fled to Russia. His run from the law ended in 2023 when German authorities arrested him based on an Interpol Red Notice. His extradition to the U.S was executed this year to answer for his actions.
As part of his plea deal, the government will dismiss the Colorado charges at sentencing, slated for December 4. Kontilai now faces a maximum sentence of 20 years in prison for the wire fraud count—a fate soon to be decided by a federal judge. His indictment and the subsequent plea deal have been the result of collaborative efforts by the FBI and IRS-Criminal Investigation, with significant assistance from the Justice Department’s Office of International Affairs, Principal Deputy Assistant Attorney General Nicole M. Argentieri, announced.
The case is currently under the investigation of the FBI and IRS-CI. Assisting in the prosecution are Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada, with former FRD Trial Attorney Emily Scruggs providing valuable assistance.
