Brent C. Kovar, 58, a Las Vegas business owner, has been charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering, following an investigation into his tech company, Profit Connect. The U.S. Attorney’s Office for the District of Nevada announced the charges today.
Kovar allegedly operated Profit Connect, a company that claimed to use artificial intelligence software on a supercomputer to mine cryptocurrency between late 2017 and July 2021. However, the U.S. attorney’s office claims that Kovar misrepresented the business as a profitable venture that paid fixed returns on investments, even offering a 100% money-back guarantee to potential investors.
To persuade customers to invest, Kovar created promotional materials including a website, YouTube video, and PowerPoint presentations. Investments were sold through a company named Profit Connect Wealth Services.
Instead of using the funds for cryptocurrency mining, Kovar allegedly misused the money to operate Profit Connect, buy gifts for employees, purchase a home for himself, and even repay some investors under the pretense of cryptocurrency profits. In total, Kovar is accused of obtaining about $24 million from at least 400 investors.
Kovar conducted financial transactions exceeding $10,000 through wire transfers, the U.S. Postal Service, and other monetary transactions tied to unlawful activity.
A jury trial has been scheduled to begin on April 8, 2025. If convicted, Kovar faces a maximum sentence of 330 years in prison and a fine of up to $4.5 million.
This case underscores the dangers of fraudulent investment schemes, especially those involving new technologies like cryptocurrency.
