Key facts
- Brent Kovar was convicted on 15 counts of wire fraud, mail fraud, and money laundering.
Brent Kovar was convicted on 15 counts including wire fraud, mail fraud, and money laundering for operating a $24 million cryptocurrency Ponzi scheme that defrauded over 400 investors. He faces a potential maximum sentence of 280 years.
The conviction highlights the ongoing risks and prevalence of cryptocurrency fraud, underscoring the need for investor vigilance and robust regulatory oversight in the digital asset space.
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.
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.