Guilty plea in fraud case tied to Robinson contracts
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Dan Hajducky, ESPN Staff Writer
Mykalai Kontilai, the broadcast executive-turned-entrepreneur who bought Jackie Robinson’s first major and minor league professional contracts and then used them to launch a sports memorabilia/auction business, pleaded guilty to wire fraud Thursday in Las Vegas.
He will be sentenced Dec. 4 and faces a maximum penalty of 20 years in prison, according to the Department of Justice.
Kontilai, 55, purchased Robinson’s Montreal Royals contract for the 1946 season and Robinson’s 1947 Brooklyn Dodgers contract for $2 million in 2013, subsequently using their purported value to lure investors into his sports memorabilia/auction business called, at various times, Collector’s Café or Collector’s Coffee (“CCI”).
Kontilai then raised more than $23 million and misappropriated $6.1 million to bankroll his own “lavish lifestyle,” manufactured evidence to mislead federal investigators, and “concealed the proceeds of his scheme” from the IRS.
In mid-2019, Kontilai left the United States amid SEC and DOJ investigations, eventually unsuccessfully claiming asylum in Russia as a whistleblower of American corruption.
In 2020, he was charged in an 18-count indictment in Nevada that included securities fraud, multiple counts of wire fraud, money laundering and failure to file tax returns — and a six-count indictment in Colorado including conspiracy to obstruct proceedings, obstruction of proceedings, tampering with documents and false statements.
In April 2023, Kontilai was arrested in Germany on an Interpol red notice and held at the Stadelheim Prison in Munich for a year. In December, a jury in the Southern District of New York found Kontilai and his company liable for securities fraud in the civil SEC case. In March, the SEC recommended Kontilai and his company pay a combined total of nearly $50 million in penalties.
He was extradited to the United States in May.
Kontilai was facing a maximum sentence of over 300 years combined in Nevada and Colorado, but he and the government entered into an agreement, with him pleading guilty to one count of wire fraud in Nevada and consenting to restitution of $6.1 million.
Kontilai’s SEC case is still unresolved. The court still needs to rule on the SEC’s motion for remedies, which includes requests for disgorgement, civil penalties and injunctive relief. But a recent court date was vacated because “The Holders” — a group of plaintiffs who provided a since defaulted loan with the Robinson contracts as collateral — and the Jackie Robinson Foundation have entered into a settlement in principle.
The potential settlement is contingent on a final written agreement but would potentially see the Jackie Robinson Foundation pay CCI and relinquish their claim to the Montreal Royals contract and receive the 1947 Brooklyn Dodgers contract.
The Holders and CCI would receive the 1945 Montreal Royals contract, with settlement funds paid to The Holders and CCI to “relinquish their interest in the 1947 major league contract.”
The settlement payment — “the 1945 contract will be marketed thereafter” — would be distributed as: 24.2% to the SEC for CCI’s interest in the 1945 minor league contract; 72.5% to The Holders; and 3.3% to Goldin Auctions “in satisfaction of funds expended by Goldin Auctions in the prior effort to sell the contracts.”
The Jackie Robinson Foundation would seek a court order stating ownership of the 1947 contract; The Holders would seek a court order on CCI’s ownership of the 1945 contract “only subject to [The Holders] interest.”
BOSTON — Boston Red Sox first baseman Triston Casas suffered a ruptured tendon in his left knee and is out for the remainder of the season, the team said.
The 25-year-old Casas ruptured his patellar tendon running to first on a slow roller up the line and fell awkwardly in Boston’s victory over the Minnesota Twins on Friday night. After laying on his back in pain — not moving the knee — he was carted off on a stretcher before being taken to a Boston hospital.
The team announced Sunday that he had surgery for a left patellar tendon repair at Massachusetts General Hospital. The surgery was performed by Dr. Eric Berkson.
“I talked to him last night,” chief baseball officer Craig Breslow said in a news conference on Saturday discussing the injury outside Boston’s clubhouse. “We exchanged text messages [Saturday]. We all care deeply about just his overall wellbeing.”
Manager Alex Cora said Casas worked hard during the offseason to play every day after missing a large amount of last year with torn cartilage in his rib cage.
“He did an outstanding job in the offseason to put himself in that situation. It didn’t start the way he wanted it to,” Cora said of Casas’ struggles. “He was going to play and play a lot. Now we’ve got to focus on the rehab after the surgery and hopefully get him back stronger than ever and ready to go next year.”
Casas batted just .182 with three homers and 11 RBIs, but Breslow said his loss will be felt, especially with the team’s lack of depth at the position.
“He certainly struggled through the first month of the season but that didn’t change what we believe his production was capable of being,” Breslow said. “It’s a big loss. In addition to what we think we were going to get on the offensive side, he was kind of like a stabilizing presence on the defensive side of the field — also a big personality and a big part of the clubhouse.”
During spring training, Casas talked about how his focus at the plate this season was being more relaxed.
“You really want it until you don’t,” he said, explaining his thoughts while standing at his locker. “Then you can’t want it that much.”
Now, he’ll have to focus on his recovery plan for next season.
Casas, a left-handed batter, was placed on the 10-day injured list Saturday with infielder/outfielder Abraham Toro selected from Triple-A Worcester.
Cora said Toro — a switch-hitter — will split time at first along with Romy Gonzalez. who bats right-handed.
Breslow said the team might be exploring a long-term replacement.
“This is unfortunately an opportunity to explore what’s available,” he said. “We’ll look both internally and outside as well.”
Cora said there are no plans to move Rafael Devers, who was replaced at third by offseason free-agent acquisition Alex Bregman and moved to DH.
“We asked him to do something in spring training that in the beginning he didn’t agree with it and now he’s very comfortable doing what he’s doing,” Cora said. “Like I told you guys in spring training, he’s my DH.”
TORONTO — Cleveland Guardians star Jose Ramirez was back in the lineup for Sunday’s game against the Toronto Blue Jays, two days after the third baseman left in the third inning because of a mild right ankle sprain.
The six-time All-Star was injured when he stumbled and fell while crossing first base on an infield single. Ramirez went down after being struck in the back by a throw from Blue Jays right-hander Chris Bassitt.
Ramirez was batting third Sunday against right-hander Bowden Francis.
Ramírez sat out Saturday when Cleveland beat Toronto 5-3. He went 2 for 2 before departing Friday, boosting his average to .274. He has five home runs and 15 RBIs in 31 games.
In last Thursday’s 4-3 victory over Minnesota, Ramirez became the first primary third baseman to reach 250 homers and 250 stolen bases.
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