Las Vegas Business Owner Faces Up to 280 Years for $24 Million Crypto Ponzi Scheme

A federal jury has convicted Las Vegas business owner Brent Kovar on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering after he defrauded more than 400 investors out of $24 million through a crypto based Ponzi scheme. The verdict came following a nine day trial.

False Claims About AI Crypto Mining

Kovar ran his company, Profit Connect, from late 2017 to July 2021, claiming it used artificial intelligence and supercomputing technology to mine and verify cryptocurrency. He promised investors fixed annual returns between 15% and 30%, along with a full money-back guarantee, while falsely claiming the company held hundreds of millions of dollars in crypto reserves.

Investor Funds Used for Personal Expenses

Prosecutors revealed that Profit Connect had no legitimate profits or crypto holdings and could not fulfill its promised returns. Instead, Kovar used investor funds to cover personal expenses, including purchasing a house, while paying earlier investors with new investor money to maintain the illusion of profitability. He is scheduled to be sentenced on November 30, facing a statutory maximum of 280 years in prison.

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