Man Sentenced To 51 Months In Prison For Fraud, Ordered To Pay $6.1 Million
According to the U.S. Department of Justice, Kontilai was CEO of Collector’s Coffee and deceived investors from 2012 to 2018 by claiming the company was about to launch an online auction platform for collectibles, including sports and Hollywood memorabilia.
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Kontilai successfully raised approximately $23 million from Collector's Coffee investors and then stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.
The SEC began investigating Kontilai around 2017, during which he obstructed justice by forging documents and lying under oath. Facing charges in Nevada and Colorado, Kontilai fled to Russia. He was later arrested in Germany on an Interpol Red Notice in 2023 and extradited to the United States in May to face the charges.
On Nov. 21, Kontilai pleaded guilty to one count of wire fraud. As part of the plea agreement in the case, the government moved to dismiss the Colorado case.
SEC Charges Kiromic BioPharma, CEO, CFO With Failure To Disclose Material Information
The SEC's order found that two weeks before the public offering, the Food and Drug Administration notified Kiromic BioPharma that it had placed the drug candidates on clinical hold.
Kiromic BioPhamra did not disclose the FDA clinical holds in its SEC filings, investor roadshow calls, or during due diligence calls leading up to the offering, despite the fact that Kiromic disclosed the hypothetical risk of a clinical hold and the potential negative consequences on Kiromic's business.
"These resolutions strike the right balance between holding Kiromic's then-two most senior officers responsible for Kiromic's disclosure failures while also crediting Kiromic for its voluntary self-report, remediation, proactively instituting remedial measures, and providing meaningful cooperation to the staff," said Eric Werner, Director of the SEC's Fort Worth Regional Office.
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