Las Vegas Business Owner Convicted in $24 Million Crypto Ponzi Scheme

A federal jury in Las Vegas convicted Brent Kovar on 15 counts, including wire fraud, mail fraud and money laundering, for operating a $24 million cryptocurrency Ponzi scheme that attracted at least 400 investors.

Charges and Conviction

Kovar was found guilty of 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering after a nine‑day trial. The conviction carries a statutory maximum of 280 years in prison, though a judge will set the actual sentence at a later hearing.

How the Scheme Operated

From late 2017 to July 2021, Kovar ran Profit Connect, claiming the firm used artificial‑intelligence software on a supercomputer to mine cryptocurrency and verify transactions. He promised investors fixed annual returns of 15 % to 30 % and a 100 % money‑back guarantee, asserting the company held hundreds of millions of dollars in crypto reserves.

Prosecutors said the company was not profitable, held no such reserves, and had no legitimate means to generate the promised returns. Instead, Kovar used new investor funds to cover operating costs, purchase personal assets, and pay earlier investors, presenting those payments as legitimate crypto earnings.

Sentencing Outlook

Kovar is scheduled for sentencing on November 30. While the combined statutory maximum is 280 years, the actual term will be determined by the presiding federal judge.