Las Vegas Businessman Found Guilty in $24M Crypto Scheme Tied to Fake AI Supercomputers

Brent Kovar has been convicted of operating a cryptocurrency Ponzi scheme that allegedly cost at least 400 investors a combined $24 million.

Las Vegas businessman Brent Kovar was found guilty of orchestrating the crypto fraud, which defrauded at least 400 people of approximately $24 million, according to an announcement Monday from the U.S. Attorney’s Office for the District of Nevada.

Following a nine-day trial, a jury convicted Kovar on 11 wire fraud charges, two counts of mail fraud and two money laundering offenses. His sentencing is set for Nov. 30, and he could face a statutory maximum of up to 280 years behind bars.

The case first gained public attention in July 2021, when the U.S. Securities and Exchange Commission (SEC) accused Kovar and his mother, Joy Kovar, of fraudulently collecting $12 million from at least 277 investors.

According to the SEC, the pair promoted their company, Profit Connect, as a cryptocurrency investment business that used funds across forex, stocks and other assets to diversify revenue beyond its primary blockchain-mining operations.

The Kovars also promoted an AI-powered “supercomputer” that they claimed could deliver fixed annual returns of between 20% and 30%, with earnings compounded every month. However, the SEC alleged that millions of dollars were instead moved into Joy Kovar’s personal bank account, while other investors received payments resembling those of a Ponzi scheme.

FBI Las Vegas Special Agent in Charge Christopher S. Delzotto said investors believed they were participating in groundbreaking technology, but the operation was ultimately built around deception and false claims.

Kovar ran Profit Connect from Las Vegas between late 2017 and July 2021. He portrayed the company as highly profitable, claiming it held hundreds of millions of dollars worth of cryptocurrency reserves and offered investors a full 100% money-back guarantee.

Instead of using the funds as promised, Kovar also spent investor money on employee gifts and used some of the proceeds to purchase a home for himself.