Court Convicts Las Vegas Businessman in $24M Crypto Fraud, 280 Years Possible
TL;DR
- A federal jury convicted Brent C. Kovar on 15 total counts tied to a $24 million crypto fraud involving at least 400 investors.
- Profit Connect promised 15% to 30% annual returns, a 100% money-back guarantee and claimed massive crypto reserves that prosecutors said did not exist.
- Kovar faces a combined statutory maximum of 280 years in prison, though a federal judge will determine the actual sentence on Nov. 30, 2026.
A federal jury has convicted Las Vegas businessman Brent C. Kovar on charges tied to a $24 million cryptocurrency fraud that prosecutors say affected at least 400 investors. Kovar, who owned Profit Connect, was found guilty after a nine-day trial of 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering. The staggering element is the punishment: the combined statutory maximum reaches 280 years in prison. His sentence will be decided by a federal judge on Nov. 30, making the figure a legal ceiling rather than a guaranteed term.
Profit Connect promised AI-powered crypto returns that never existed
Profit Connect operated from late 2017 through July 2021 and was presented as a business using artificial intelligence software on a supercomputer to mine cryptocurrency and verify blockchain transactions. Kovar told investors the company was profitable, offering fixed annual returns ranging from 15% to 30%, alongside a 100% money-back guarantee. Prosecutors said those assurances were built on claims that did not match the company’s financial reality. Kovar also told investors that Profit Connect held hundreds of millions of dollars in cryptocurrency reserves and falsely claimed their investments were insured by the Federal Deposit Insurance Corporation.
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