$24M Las Vegas Crypto Ponzi Scheme Conviction

A Las Vegas business owner has been convicted of running a cryptocurrency Ponzi scheme that defrauded at least 400 investors out of $24 million.

Brent C. Kovar, the owner of Profit Connect, claimed his company used artificial intelligence software on a supercomputer to mine cryptocurrency and verify transactions on other networks.

Investors were promised fixed returns of 15% to 30% per year and a full money-back guarantee, with some told their investments were insured by the Federal Deposit Insurance Corporation.

Kovar was convicted after a nine-day trial on 11 counts of wire fraud, two of mail fraud, and two of money laundering. He faces up to 280 years in prison under federal sentencing guidelines.