- Published on
Business owner faces up to 280 years over $24M crypto Ponzi scheme
- Authors
- Name
- DeepHorus
Brent Kovar, the owner of a Las Vegas-based company called Profit Connect, faces a statutory maximum sentence of 280 years in federal prison after being convicted of running a $24 million cryptocurrency Ponzi scheme. A federal jury found him guilty on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering following a nine-day trial. The verdict was announced by the U.S. Justice Department on Monday.
Kovar operated Profit Connect from late 2017 until July 2021. The company claimed to use artificial intelligence software on a supercomputer to mine cryptocurrency and verify other crypto transactions. Prosecutors presented evidence showing this was a false representation designed to lure investors.
He enticed at least 400 investors by falsely promising fixed annual returns of 15% to 30%, along with a 100% money-back guarantee. Kovar also made misleading claims that Profit Connect held hundreds of millions of dollars in cryptocurrency reserves. In reality, the company was not profitable and held no such assets, with no legitimate means to deliver the promised returns.
Instead of generating crypto profits, Kovar used investor funds to cover the company's operating costs. He also purchased a house for himself, bought gifts for employees, and repaid earlier investors. These payouts were deceptively presented as proceeds from successful crypto activities, characteristic of a Ponzi scheme.
The conviction highlights ongoing regulatory crackdowns on fraudulent cryptocurrency investment schemes. Kovar is scheduled to be sentenced on November 30. While the 280-year figure is the combined statutory maximum, the actual sentence will be determined by a federal judge.
This case adds to a series of high-profile crypto fraud prosecutions. It underscores the risks investors face with schemes promising guaranteed high returns. Law enforcement agencies continue to target such operations to protect the public from financial harm.
