by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Dec 8 – A man who raised $22 million for a collectable auction website he said would include Jackie Robinson's contacts with the Brooklyn Dodgers and Montreal Royals - but which he never opened - is facing a civil trial by the Securities and Exchange Commissioner.
Jury selection and opening arguments were held on December 5 before U.S. District Court for the Southern District of New York Judge Victor Marrero. Inner City Press was there.
Before jury selection, Judge Marrero told defense counsel that evidence would have to proved before Veronica Kontilai, the defendant's spouse, was medically unavailable.
But in opening statements, along with a photo of defendant Mykalai Kontilai with Larry King, the jury was told the Veronica is "only a housewife," and is sick.
The SEC's opening showed the jurors checks made out to cash, and prepared them for lead witness Gail Holt. Ms. Hold got a non prosecution agreement from DOJ, and is set to testify that Mykalai Kontilai told her to take more than $1 million out of the company, then drive around Las Vegas taking it out of banks.
On December 6, before CCI's assistant then chief marketing officer, a victim was on the stand; the corporation's lawyer asked him to read from the Private Placement Memos, and that he had agreed to only rely on them. The SEC objected to this "reliance" argument, and did so in writing in well. The SEC also asked for a curative instruction after the defense told the jury that the never-opened website, if not for the SEC, could have been sold to Carlos Slim.
On December 7 on the stand was Gary Farrell, who said Kontilai put him on the board because he could arrange for a PBS television show, given boards of directors he was on. $500,000 was spent on a pilot. He was shown documents that Gail Holt replaced him and said he thought the documents were false or backdated.
On December 8 on the stand was Kirk Jensen, who invested $500,000. He was taken in by the studios in Los Angeles and making "sizzle reels" about coaching. But the website was delayed, then a dud. In his deposition, he recounts meeting Larry King, and learning that the Jackie Robinson contract were worth maybe $10 million, not $36 million. The trial continues.
The case is SEC v. Collector's Coffee, et al., 19-cv-4355 (Marrero)
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