Key facts
- Brent Kovar was convicted on 15 counts of wire fraud, mail fraud, and money laundering.
- The scheme operated from late 2017 to July 2021, defrauding at least 400 investors of $24 million.
- Kovar falsely claimed his company, Profit Connect, used AI for crypto mining and promised fixed annual returns of 15% to 30% with a money-back guarantee.
- Investor funds were used for operational costs, gifts, personal expenses, and to repay earlier investors.
- Kovar faces a statutory maximum sentence of 280 years in prison.
A federal jury has convicted Las Vegas business owner Brent Kovar on 15 counts, including wire fraud, mail fraud, and money laundering, for orchestrating a cryptocurrency Ponzi scheme that defrauded at least 400 investors out of $24 million. Kovar, who owned Profit Connect from late 2017 to July 2021, falsely claimed the company was profitable, utilized AI for crypto mining, and promised investors annual returns ranging from 15% to 30% with a 100% money-back guarantee.
Prosecutors stated that Profit Connect was not profitable and held no significant crypto reserves. Instead, Kovar allegedly used investor funds to cover operational expenses, purchase gifts for employees, acquire a house for himself, and repay earlier investors, disguising these payments as proceeds from legitimate crypto activities. The SEC had previously shut down the company in 2021, estimating losses at $12 million from 277 investors.
Kovar faces a statutory maximum sentence of 280 years in prison, though a federal judge will determine the final sentence. Sentencing is scheduled for November 30.