Yesterday, Mykalai Kontilai, the former head of a Las Vegas-based company, was given a 51-month prison sentence after admitting to charges related to a long-standing investment fraud scheme. As per the U.S. Attorney's Office, Kontilai swindled investors out of millions through false promises associated with his business, Collector's Coffee Inc. He was also ordered to pay $6.1 million in restitution for the funds he diverted for personal luxuries.
The fraudulent activities spanned over six years, deceiving victims into investing in what was supposed to be an online auction platform for collectables. Kontilai, who had changed his name from Michael Contile, enticed investors with claims of significant personal investment and assurances that their funds would be used strictly for business purposes. According to a statement obtained by the U.S. Attorney's Office, he instead used around $6.1 million for his own benefit.
The U.S. Securities and Exchange Commission began sniffing out Kontilai's dealings in 2017, but Kontilai's response was to obstruct justice by forging documents and lying under oath. His run from the law took a dramatic turn when he fled to Russia, but his freedom was short-lived as he was captured in Germany in 2023 based on an Interpol Red Notice. After extradition to the United States earlier this year, Kontilai faced the consequences of his actions, as reported by the U.S. Attorney's Office.
On Nov. 21, Kontilai pleaded guilty to one count of wire fraud, leading to the dismissal of a separate case in Colorado. The announcement was made by Principal Deputy Assistant Attorney General Nicole M. Argentieri, U.S. Attorney Jason M. Frierson for the District of Nevada, and heads of respective FBI and IRS criminal investigation offices. The Justice Department’s Office of International Affairs was credited with playing a key role in securing Kontilai’s return from Germany, as per the U.S. Attorney's Office. The trial attorneys involved in the prosecution of this case were Brandon Burkart, Sara Hallmark, and Jessica Oliva, with former Trial Attorney Emily Scruggs providing assistance.
