Profit Connect Owner Convicted in $24M AI Crypto Scam

A federal jury has convicted Brent Kovar, the owner of Profit Connect, on 15 counts of fraud and money laundering in connection with a $24 million scheme that affected at least 400 investors.

The scheme involved false claims about an AI-powered crypto business that promised returns of 15% to 30% APR and a 100% money-back guarantee. Kovar told investors that Profit Connect used AI software on a supercomputer to mine crypto and verify transactions, but prosecutors said the company was unprofitable, held no reserves, and lacked a legitimate source for the promised returns.

Kovar used investor money to operate the business, buy gifts for employees, purchase a house for himself, and repay investors with funds that were not actually generated by the business. The Justice Department said the verdict followed a nine-day trial, with jurors finding Kovar guilty of 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.