Brent Kovar has been found guilty of operating a $24 million cryptocurrency Ponzi scheme that targeted at least 400 investors.
The Las Vegas businessman was convicted following a nine-day federal trial, according to the U.S. Attorney’s Office for the District of Nevada. The jury found him guilty on 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering.
Kovar is scheduled to be sentenced on Nov. 30 and could face a statutory maximum of 280 years in prison.
The allegations against Kovar first became public in July 2021, when the U.S. Securities and Exchange Commission accused him and his mother, Joy Kovar, of fraudulently raising $12 million from at least 277 investors.
The two promoted their company, Profit Connect, as a cryptocurrency-focused business that generated income through blockchain mining while also investing in foreign exchange, stocks and other assets.
They marketed the operation around an alleged artificial intelligence-powered supercomputer, claiming it could produce guaranteed annual returns of between 20% and 30%, compounded monthly.
However, regulators alleged that the business did not generate the promised returns. Instead, millions of dollars were allegedly transferred to Joy Kovar’s personal bank account, while funds from newer investors were used to make payments to earlier participants.
FBI Las Vegas Special Agent in Charge Christopher S. Delzotto said investors were persuaded that they were funding cutting-edge technology, but the operation was ultimately based on false representations and deception.
Kovar ran Profit Connect from Las Vegas between late 2017 and July 2021. During that period, he portrayed the company as profitable and claimed it maintained hundreds of millions of dollars in cryptocurrency reserves.
The company also advertised a 100% money-back guarantee to attract investors.
Authorities said Kovar diverted some investor funds toward personal and business expenses, including purchasing gifts for employees and buying a home for himself.
