Las Vegas Business Owner Convicted of Cryptocurrency Ponzi Scheme

A federal jury in Las Vegas has convicted Brent C. Kovar of multiple charges related to a cryptocurrency Ponzi scheme that defrauded investors of $24 million. Kovar owned Profit Connect, a company that falsely claimed to use artificial intelligence to mine cryptocurrency and verify transactions, promising fixed returns of 15% to 30% annually and backing from hundreds of millions in reserves. In reality, the company was not profitable, had no reserves, and could not fulfill its promises.

Kovar used investor funds for personal expenses, including purchasing gifts, a house, and operating expenses, while falsely claiming that investments were insured by the FDIC. The scheme operated from late 2017 until July 2021, attracting at least 400 investors.

Following a nine-day trial, Kovar was found guilty of 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. He faces a maximum sentence of 280 years in prison, with sentencing scheduled for November 30, 2026. The case was investigated by IRS Criminal Investigation, the FBI, and the FDIC Office of Inspector General, with prosecution handled by the U.S. Attorney's Office.

This case underscores the importance of regulatory oversight and enforcement in the rapidly evolving cryptocurrency space, especially concerning investor protections and fraud prevention.