A Las Vegas man pleaded guilty on Thursday to a count of wire fraud, which was part of a bigger fraud scheme where he stole millions.
55-year old Mykalai Kontilai, formerly Michael Contile, allegedly executed a scheme involving his company Collector's Coffee, Inc. that allowed him to steal $6.1 million from his investors.
Kontilai allegedly made numerous "materially false and misleading representations" to get people to invest in his company, which was sold as an online auction house for third-party owned collectibles.
Some of the false statements included that Kontilai had personally invested millions of his own money and that he did not take a salary.
Kontilai raised $23 million dollars from investors; however, he went on to steal around $6.1 million for his own personal use - buying luxury good, apartments and vehicles with the ill-gotten money.
The U.S. Securities and Exchange Commission (SEC) started an investigation into the conduct around 2017, during which Kontilai tried to obstruct by forging documents and lying under oath.
While under investigation but before being charged, Kontilai fled to Russia.
He was arrested in Germany in 2023 and extradited back to the U.S. in May of 2024.
Kontilai's sentencing is scheduled to take place on December 4, and he faces a maximum penalty of 20 years in prison.
