A sports memorabilia firm ran afoul of whistleblower protection rules when it tried to keep unhappy investors from reaching out to law enforcement about the CEO’s use of more than $6 million to gamble and for other personal expenses, the SEC said Nov. 4 in New York federal district court. They also allegedly bragged about suing investors who didn’t keep quiet.
Collector’s Coffee Inc. and founder Mykalai Kontilai allegedly used investor funds for personal expenses and required investors to sign “confidentiality clauses prohibiting the investors from communicating with law enforcement” to get their funds back, the Securities and Exchange Commission ...
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