Summary
- A federal jury has found Brent Kovar guilty of defrauding over 400 investors out of $24 million through his firm, Profit Connect.
- Kovar guaranteed returns of 15% to 30% annually, alongside a full money-back promise, falsely claiming extensive crypto reserves.
- The SEC shut down Profit Connect in 2021, estimating losses at $12 million.
A federal jury in Las Vegas convicted Brent C. Kovar for orchestrating a $24 million Ponzi scheme that deceived more than 400 investors, as announced by the Justice Department on Monday.
Kovar operated Profit Connect, which from late 2017 until July 2021, asserted it utilized artificial intelligence software on a supercomputer to mine cryptocurrency and validate transactions on various networks. Investors were lured with promises of fixed annual returns between 15% and 30%, along with a full money-back guarantee, and assurances of substantial crypto reserves.
LAS VEGAS – A federal jury found Brent C. Kovar guilty of running a cryptocurrency Ponzi scheme that fraudulently acquired $24 million from at least 400 investors by offering inflated returns and misleading claims about the company's backing. pic.twitter.com/LOoLzRJg4C
— US Attorney Nevada (@USAO_NV) August 24, 2026
Prosecutors indicated that Kovar was aware that Profit Connect was not generating profits, had no reserves, and could not fulfill its advertised returns or guarantees. Funds from investors were used to sustain the business, purchase gifts for staff, and buy Kovar a residence, while some money was recycled back to earlier investors as if it were from mining activities.
Additionally, Kovar misled investors by claiming their funds were insured by the Federal Deposit Insurance Corporation, as noted by Ryan Korner, the special agent in charge at the FDIC's Office of Inspector General, which collaborated with the FBI and IRS Criminal Investigation on the case.
After a nine-day trial, Kovar was convicted on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. He is scheduled for sentencing on November 30, facing a maximum possible sentence of 280 years, although the exact duration will be determined by the judge based on federal guidelines.
Scheme Halted in 2021
The SEC intervened in 2021, obtaining a restraining order and freezing assets in July, estimating losses at $12 million from at least 277 investors, which is significantly less than the amount established by prosecutors. The regulator reported that over 90% of Profit Connect's revenue stemmed from investors, with none used for actual cryptocurrency trading.
Kovar operated the business alongside his mother, Joy, who was 86 at the time. The SEC revealed that $1.2 million was transferred to her personal account in ten installments within a short period, with an additional $1.7 million withdrawn through various means, including cash and credit card payments, and vehicle purchases. The announcement on Monday focused solely on Brent Kovar.
This was not Kovar's first encounter with regulatory authorities; the SEC previously filed a civil injunction against him and his father Glenn in 2009 concerning a pump-and-dump scheme involving a company named Skyway Global, which similarly cost investors $12 million.
Investment fraud continues to be the predominant category of cryptocurrency-related crime reported to the FBI, which recorded losses of $11.37 billion in 2025, marking a 22% increase from the previous year. The Consumer Federation of America estimated total losses at $80.7 billion, accounting for unreported fraud, with Americans over 60 representing $4.4 billion of the reported losses.