Las Vegas Business Owner Convicted in $24 Million Cryptocurrency Ponzi Scheme
Brent C. Kovar, owner of Profit Connect in Las Vegas, was convicted of fraudulently taking $24 million from at least 400 investors.
The scheme ran from late 2017 to July 2021, during which time Kovar lied to investors about the company's profitability and returns, claiming a fixed rate of 15-30%.
Kovar also falsely represented that Profit Connect was backed by hundreds of millions of dollars in cryptocurrency reserves.
Prosecutors stated that Kovar used investor money for personal expenses, including buying gifts for employees, a house for himself, and to repay investors as if the funds came from mining cryptocurrency and verifying transactions.
Kovar faces a maximum sentence of 280 years in prison after being found guilty of 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.