Securities Claims Over Jackie Robinson Contracts Go Forward

The owner of a collectibles company suffered a setback in his attempt to shake off claims of violating securities law by luring investors with the false claim that the company owned Jackie Robinson contracts worth more than $36 million, while pocketing millions of dollars from investors, after a Southern District of New York magistrate judge recommended that a motion to dismiss be denied.

The representations of Mykalai Kontilai and Collector’s Coffee Inc., doing business as Collectors Cafe, “were false and misleading” because CCI didn’t own a 100% interest in the contracts, and there was “substantial doubt about the $36 million ...