Profit Connect Owner Convicted on $24 Million AI Crypto Fraud Scheme

A federal jury convicted Brent C. Kovar, the owner of Profit Connect, on 15 fraud‑related counts after a nine‑day trial. Prosecutors said Kovar raised at least $24 million from over 400 investors by promoting a bogus AI‑powered crypto mining operation.

False Promises and Misrepresentations

Kovar told investors that Profit Connect used AI software on a supercomputer to mine cryptocurrency and verify transactions. He claimed the company was profitable, held “hundreds of millions of dollars” in crypto reserves, offered fixed annual returns of 15%‑30% APR, and provided a 100% money‑back guarantee.

Reality of the Scheme

The Justice Department said the business was unprofitable, held no reserves, and had no legitimate source of the promised returns. Investor funds were allegedly used to operate the company, purchase gifts for employees, buy a personal house, and repay earlier investors – repayments were presented as proceeds from mining.

Legal Background

The SEC previously filed a civil action in 2021 alleging that Brent and Joy Kovar raised more than $12 million from at least 277 retail investors through Profit Connect Wealth Services, promising 20%‑30% annual returns tied to an alleged AI supercomputer.

The criminal case expanded the alleged loss amount to $24 million and the investor count to at least 400. The convictions carry a statutory maximum of 280 years in prison; sentencing is scheduled for November 30.