On Dec. 13, 2023, after a seven-day trial, a jury in the United States District Court for the Southern District of New York found Mykalai Kontilai and his company, Collectors Coffee, Inc. (a/k/a Collectors Café) liable for securities fraud.  Each were found liable in connection with their roles in a fraudulent securities offering and Kontilai’s misappropriation of millions of dollars in investor proceeds.

Statement of SEC Division of Enforcement Director Gurbir S. Grewal:

“We are pleased with today’s jury verdict finding Mykali Kontilai and Collectors Coffee liable for securities fraud. Collectors Coffee and Kontilai, its CEO, repeatedly lied to investors to raise money for the company – money which Kontilai routinely stole to fund his lavish lifestyle. Investors should be able to trust those to whom they give their hard-earned money, and not worry that those people will lie, cheat, and steal. From the outset of this case, when the Court entered emergency relief, to today’s jury verdict, the hard work of the SEC team has demonstrated our commitment to protecting investors and holding fraudsters to account.”

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More information:

• The SEC filed its civil complaint on May 14, 2019, and obtained an emergency asset freeze and other emergency relief.
• The SEC filed an amended complaint on November 4, 2019.