Nevada man admits to $6.1 million investor fraud scheme

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LAS VEGAS — A Nevada man admitted in federal court Thursday that he orchestrated a multimillion-dollar investment fraud scheme and defrauded victims of more than $6.1 million over six years.

Mykalai Kontilai, 55, of Las Vegas, whose company is Collector’s Coffee Inc. He pleaded guilty to one count of wire fraud for his role in the scheme that involved soliciting investments under false pretenses for . Prosecutors said Kontilai used false claims to raise nearly $23 million from investors between 2012 and 2018, diverting a significant portion of the funds for personal use.

Court records show Kontilai promised investors that Collector’s Coffee would launch an online auction platform for collectibles, including Hollywood and sports memorabilia. He falsely claimed that he had personally invested millions in the company, that he was not receiving a salary, and that the funds would be used for business purposes only. Instead, he devoted $6.1 million to personal purchases such as luxury goods, vehicles and real estate.

The U.S. Securities and Exchange Commission began investigating Kontilai in 2017, accusing him of misusing investor funds. Kontilai forged documents and lied under oath to the SEC to obstruct the investigation. He was charged in two federal cases in 2020, one in Nevada and the other in Colorado. Kontilai fled to Russia before being captured, but in 2023 he was arrested in Germany under Interpol’s Red Notice and extradited to the United States.

Kontilai’s sentence will be determined on December 4. He faces a maximum sentence of 20 years in federal prison. Federal officials credited the FBI, IRS Criminal Investigation and the Justice Department’s Office of International Affairs for their work on the case, including securing Kontilai’s extradition.

This plea brings closure to a case involving years of deception and millions in stolen funds.