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Reading: Man used Jackie Robinson contracts to steal tens of millions from buyers. Then he fled to Russia searching for asylum
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Michigan Post > Blog > Sports > Man used Jackie Robinson contracts to steal tens of millions from buyers. Then he fled to Russia searching for asylum
Sports

Man used Jackie Robinson contracts to steal tens of millions from buyers. Then he fled to Russia searching for asylum

By Editorial Board Published December 10, 2024 11 Min Read
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Man used Jackie Robinson contracts to steal tens of millions from buyers. Then he fled to Russia searching for asylum

The primary contract Jackie Robinson signed together with Brooklyn Dodgers president Department Rickey on Oct. 23, 1945, was an settlement to play for the Montreal Royals, the Dodgers’ high farm membership. The deal referred to as for a $3,500 signing bonus and $600 per thirty days for the 1946 season.

Lower than two years later, on April 11, 1947, Robinson signed his first main league contract together with Rickey and Nationwide League president Ford Frick. He can be paid $5,000 for the season.

What occurred subsequent is well-documented and yearly celebrated.

5 days after signing, Robinson made historical past by turning into the primary Black participant to play Main League Baseball, breaking the colour barrier. The Dodgers second baseman was the Rookie of the Yr, and two years later the Nationwide League Most Beneficial Participant. He batted .313 over 11 seasons and was inducted into the Corridor of Fame in 1962, and his No. 42 was retired throughout baseball in 1997.

However what turned of the contracts? Sports activities memorabilia can fetch tens of millions as of late, and consultants say the unique participant’s contracts of 1 Jack Roosevelt Robinson may possess financial worth which may surpass Shohei Ohtani’s 50/50 dwelling run ball, Freddie Freeman’s World Collection Sport 1 walk-off grand slam ball, or any of the high-end stuff worn or swatted by Babe Ruth that’s auctioned for seven figures.

After a long time of uncertainty, Robinson’s contracts from 1945 and 1947 are safely underneath lock and key, held by the U.S. Marshals Service since 2019 as a part of an funding fraud investigation and prosecution.

Mykalai Kontilai, a broadcast government who in 2013 launched a sports activities memorabilia enterprise referred to as Collector’s Espresso by buying and showcasing the 2 Robinson contracts, pleaded responsible final month to at least one rely of mail fraud. He was sentenced Wednesday to 51 months in jail and ordered to pay $6.1 million in restitution to buyers he swindled.

These buyers, referred to as “the Holders” in court docket paperwork, supplied Kontilai with loans, utilizing the Robinson contracts as collateral, and Kontilai raised greater than $23 million earlier than defaulting on the loans.

A replica of Jackie Robinson’s historic contract with the Brooklyn Dodgers in 1947.

(U.S. District Courtroom for the Southern District of New York)

Kontilai, 55, obstructed the investigation by forging paperwork transmitted to the Securities and Change Fee and lied underneath oath to the SEC. Whereas underneath investigation however previous to charging, he fled to Russia and unsuccessfully claimed asylum as a whistleblower of American corruption. He finally was arrested on an Interpol Pink Discover in Germany in 2023. He was extradited again to the U.S. in Could to face the pending costs.

Kontilai was discovered responsible of misappropriating funds — reportedly shopping for a Cadillac, paying for personal college tuition and hire on luxurious properties all through the nation — whereas purposely deceptive investigators and failing to pay taxes on proceeds from the scheme.

“Collectors Coffee and Kontilai, its CEO, repeatedly lied to investors to raise money for the company — money which Kontilai routinely stole to fund his lavish lifestyle,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, stated in an announcement final 12 months. “Investors should be able to trust those to whom they give their hard-earned money, and not worry that those people will lie, cheat, and steal.”

Solely the Robinson contracts stay in limbo, though there quickly could possibly be a decision, with the philanthropic Jackie Robinson Basis and the Holders sharing the spoils.

“I hope they could do that,” stated David Kohler, president of high-end sports activities memorabilia home SCP Auctions in Orange County. “The proceeds would go to pay back people who were scammed. That seems like that’s the right thing to do.”

Kohler provided a ballpark quantity on what the contracts would possibly fetch at public sale. He additionally recognized an social gathering that would afford to make a robust bid.

“I’d say they’d probably go for $5 million and up at auction,” he stated. “They reach beyond the game of baseball. They are important 20th Century American artifacts central to the civil rights movement.

“I sometimes wonder when it comes to historical items, why don’t the teams buy them? They’d be worth more to their team than to collectors.”

Jackie Robinson steals home during a baseball game in New York

Brooklyn Dodgers star Jackie Robinson steals dwelling as Boston Braves’ catcher Invoice Salkeld is thrown off-balance through the fifth inning at Ebbets Area in New York on Aug. 22, 1948.

(Related Press)

Certainly, the Dodgers tried to take possession of the contracts, asserting in a January 2019 letter to Assortment’s Espresso that, “[t]he property is owned by the Dodgers and is not property of [Collector’s Coffee, Inc.].”

Later that 12 months, nonetheless, the Dodgers relinquished their possession declare to the Jackie Robinson Basis.

In keeping with court docket filings, the potential settlement is contingent on a written settlement that will see the Jackie Robinson Basis get the 1947 Brooklyn Dodgers contract and relinquish its declare to the 1945 Montreal Royals contract, which might go to the Holders.

Along with the Holders getting the 1945 contract, in addition they would obtain an undisclosed quantity of the worth of the 1947 contract from the muse. The SEC additionally would obtain a small portion. Kohler stated the Dodgers contract is extra helpful than the Royals contract.

When the distribution is accepted by the court docket, it may conclude a rare journey the contracts took from the desk of Rickey within the Forties to auctions that the Holders hope may generate sufficient cash to cowl their losses ensuing from Kontilai’s fraud.

Lengthy earlier than sports activities memorabilia turned a million-dollar enterprise, Rickey and Dodgers proprietor Walter O’Malley supplied the contracts to the James A. Kelly Institute for Native Historic Research in Brooklyn for an exhibition in 1952. And the contracts remained within the institute’s basement for many years together with almost 4 million different paperwork chronicling Brooklyn’s development.

Jackie Robinson in a Dodgers jersey.

Brooklyn Dodgers infielder Jackie Robinson in 1953.

(Harry Harris / Related Press)

Three years later, Arthur’s spouse and son offered the contracts to Gotta Have It Collectibles for $750,000. Odette Konop signed a letter that warranted title and said, “My Husband possessed these contracts in a safe deposit box at our home for over 45 years. … He has cared for them and protected them over half his life to the time of his passing.”

Gotta Have It solely owned the contracts for a 12 months earlier than promoting them for $2 million in 2013 to Kontilai, who used them as collateral for $6 million in loans to the Holders.

Kontilai used the contracts to spice up his fledgling memorabilia and public sale enterprise, holding occasions at Philadelphia’s Structure Heart and New York’s Occasions Sq. to publicize his acquisitions. He obtained a revered knowledgeable in American historic paperwork, Seth Kaller, to assign a valuation of $36 million to the contracts, then instantly went on a spending spree with the buyers’ cash.

When the SEC started investigating Kontilai in 2017, he allegedly cast paperwork, lied underneath oath and obstructed the investigation. It took three years, however he was charged with an 18-count indictment in Nevada that included securities and wire fraud, cash laundering and failure to file tax returns. He additionally confronted costs in Colorado, however these costs had been dropped when he pleaded responsible to at least one rely of wire fraud.

Becoming a member of the fray for no less than partial possession of the contracts is the general public, nonprofit Jackie Robinson Basis, launched in 1973 by Robinson’s widow, Rachel Robinson, to perpetuate the reminiscence of her husband. The inspiration administers scholarship and management improvement packages for school college students and was central to creating the Jackie Robinson Museum, which opened in 2022 in New York Metropolis and focuses extra on his affect off the sphere than his accomplishments on it.

“Even if you come in with the idea to see the baseball story and learn more about that, you have to walk through that room that talks about his commitment to economic opportunity and civil rights and social justice,” Della Britton, president and chief government of the Jackie Robinson Basis, advised The Occasions in 2022.

In a single room, Robinson’s life duties are displayed in giant capital letters: SOLDIER, CAMPAIGNER, PUBLIC SERVANT, ACTIVIST, FUNDRAISER, ORGANIZER, PROTESTOR, ENTREPRENEUR, CITIZEN and extra.

Additionally within the room are the framed contracts signed by Robinson and Rickey from 1945 and 1947. However they’re solely copies, with the originals nonetheless hidden away, this time underneath the watchful eyes of federal authorities till a court docket approves their new possession and an public sale seemingly determines their financial worth.

TAGGED:AsylumcontractsfledinvestorsJackieManmillionsRobinsonRussiaseekingsteal
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