Business owner faces up to 280 years over $24M crypto Ponzi scheme
A Las Vegas business owner was convicted by a federal jury for running a $24 million crypto Ponzi scheme that defrauded at least 400 investors. Brent Kovar, owner of Profit Connect, was found guilty on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering after a nine-day trial. Prosecutors said he falsely claimed the company used AI and a supercomputer to mine crypto, promised fixed annual returns of 15% to 30%, and offered a 100% money-back guarantee. He also claimed Profit Connect held hundreds of millions in crypto reserves, but it had no real profits or reserves. Investor funds were instead used to keep the business running, pay earlier investors, buy employee gifts, and purchase a house for Kovar. He faces sentencing on Nov. 30, though a judge will decide the actual term despite the 280-year statutory maximum.
