Profit Connect Owner Convicted in $24M AI-Powered Crypto Fraud Scheme
A federal jury has convicted Profit Connect owner Brent C. Kovar of 15 counts related to a $24 million AI-powered crypto fraud scheme.
Kovar marketed his company as a profitable technology business capable of generating returns between 15% and 30% APR, with a 100% money-back guarantee.
The Justice Department said the verdict followed a nine-day trial, with jurors finding Kovar guilty of wire fraud, mail fraud, and money laundering. Kovar used investor funds to operate Profit Connect, repay investors, and make personal purchases, including buying a house for himself.
The SEC's 2021 civil action alleged that Joy and Brent Kovar had raised more than $12 million from at least 277 retail investors through similar claims about an AI supercomputer. The Justice Department's figure of $24 million is about twice the earlier estimate, with a minimum investor count increased to at least 400.
Kovar's sentencing is set for November 30, with prosecutors saying the convictions carry an aggregate statutory maximum of 280 years in prison.