Brent Kovar has been convicted for running a cryptocurrency Ponzi scheme that defrauded at least 400 investors of roughly $24 million.
A Las Vegas jury found Kovar guilty of operating the fraudulent crypto investment operation, according to the U.S. Attorney’s Office for the District of Nevada.
After a nine-day trial, Kovar was convicted on 11 wire fraud charges, two mail fraud counts and two money laundering charges. He is scheduled to be sentenced on Nov. 30 and faces a statutory maximum of 280 years in prison.
The case dates back to July 2021, when the U.S. Securities and Exchange Commission charged Kovar and his mother, Joy Kovar, with raising $12 million from at least 277 investors through fraudulent claims.
The pair promoted their company, Profit Connect, as a crypto business that invested in foreign exchange, stocks and other assets while generating its main revenue through blockchain mining, according to the SEC.
They also claimed to operate an AI-equipped supercomputer capable of producing guaranteed annual returns of 20% to 30%, with profits compounded monthly.
Authorities alleged that the promised investment strategy was not genuine. Instead, millions of dollars were reportedly transferred to Joy Kovar’s personal bank account, while some investors were paid using funds from other participants in a pattern resembling a Ponzi scheme.
FBI Las Vegas Special Agent in Charge Christopher S. Delzotto said investors were led to believe they were backing innovative technology, when the business was actually based on misleading claims and deception.
Kovar operated Profit Connect in Las Vegas from late 2017 until July 2021. During that period, he portrayed the company as financially successful, claiming it controlled hundreds of millions of dollars in cryptocurrency reserves and offering investors a 100% money-back guarantee.
Prosecutors also said Kovar misused investor funds for personal and business-related expenses, including buying gifts for employees and purchasing a house for himself.
