In an amended complaint, filed in Manhattan federal district court, the SEC tacked on charges against the online auction portal Collectors Cafe and its CEO Mykalai Kontilai, who had been accused of making a fraudulent securities offering and misappropriating investors’ money. The SEC alleged that Collectors Cafe conditioned the return of money to investors who signed agreements that they would not report potential misconduct to the commission or other government agencies.
“In one of these instances,” the SEC said in the amended lawsuit, “Collectors Café and Kontilai even went so far as to file a lawsuit claiming that the victims breached the confidentiality provision by communicating with SEC staff about possible securities law violations.”
‘Enforcement 40’ for 2020
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn