Crypto Fraud: Nevada Man Faces 330 Years for $24M Scheme

Las Vegas businessman Brent C. Kovar has been charged with orchestrating a $24 million cryptocurrency fraud scheme, facing up to 330 years in prison for deceiving over 400 investors with false promises. The 58-year-old is accused of 12 counts of wire fraud, three counts each of mail fraud and money laundering.

According to the criminal complaint, Kovar's company, Profit Connect, claimed to use artificial intelligence for cryptocurrency mining and transaction verification. He lured investors with the promise of earning 15% to 30% yearly, along with full repayment of their money. However, these claims were false, and Kovar allegedly misled investors by stating their deposits were insured under the FDIC system.

Kovar allegedly diverted investor funds to purchase personal items, pay employee bonuses, and construct his private residence between 2017 and 2021. He disguised payments to earlier investors using fresh investor funds, marketing them as cryptocurrency operation returns. Kovar established a website and created promotional videos and presentations to attract investors, and Profit Connect Wealth Services served as the sales agency for the investments.

Kovar used various payment methods to transfer funds, including wire transfers and postal mail checks. He also made illegal payments exceeding $10,000 using funds from unlawful activities. If convicted, Kovar faces potential imprisonment for 330 years and fines totaling $4.5 million. His legal proceedings will take place on April 8, 2025, under the jurisdiction of Judge Jennifer A. Dorsey.