A Las Vegas Businessman Indicted for $24 Million Cryptocurrency Ponzi Scheme

A Las Vegas businessman, Brent C. Kovar, 58, has been indicted for allegedly orchestrating a $24 million cryptocurrency Ponzi scheme through his company, Profit Connect. Prosecutors claim Kovar falsely promoted Profit Connect as an artificial intelligence-powered cryptocurrency mining firm that guaranteed fixed investment returns of 15%-30% APR and falsely implied FDIC backing. From 2017 to 2021, Kovar allegedly misused investor funds to cover business expenses, purchase personal assets, and repay earlier investors under false pretenses. He allegedly used a website, YouTube videos, and PowerPoint presentations to lure at least 400 investors. Charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering, Kovar faces up to 330 years in prison and $4.5 million in fines if convicted. His trial is set for April 8, 2025. The FBI, FDIC OIG, and IRS-CI investigated the case, with Assistant U.S. Attorney Daniel Schiess leading the prosecution.

Background of the Case

Brent C. Kovar, a 58-year-old businessman based in Las Vegas, has been accused of running a fraudulent cryptocurrency Ponzi scheme through his company, Profit Connect. The scheme allegedly involved false promises of high investment returns and misrepresented information about the company’s operations.

Allegations Against Brent C. Kovar

Prosecutors claim that Kovar marketed Profit Connect as an artificial intelligence-powered cryptocurrency mining firm that guaranteed fixed investment returns ranging from 15% to 30% APR. Additionally, he allegedly implied that the investments were backed by the FDIC, which was not true. Instead of using the funds for their intended purpose, Kovar is accused of using them to cover business expenses, buy personal assets, and repay earlier investors.

Legal Consequences

Kovar is facing serious legal repercussions for his alleged actions. He has been charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he could potentially be sentenced to up to 330 years in prison and fined $4.5 million. His trial is scheduled to begin on April 8, 2025.

Investigation and Prosecution

The FBI, FDIC OIG, and IRS-CI conducted a thorough investigation into the case. Assistant U.S. Attorney Daniel Schiess is leading the prosecution against Brent C. Kovar. The authorities have worked diligently to bring justice to the victims of the alleged Ponzi scheme.