Las Vegas businessman faces 280 years over $24 million crypto Ponzi scheme

A federal jury has convicted Las Vegas businessman Brent Kovar of fraud and money laundering after prosecutors said his Profit Connect operation collected $24 million from at least 400 investors through false claims about cryptocurrency mining, investment returns and company reserves.
Summary

• Brent Kovar was convicted of fraud and money laundering over a $24 million crypto Ponzi scheme.
• Profit Connect collected funds from at least 400 investors with promises of 15% to 30% annual returns.
• Prosecutors said investor money funded the business, personal purchases and repayments to earlier investors.
• Kovar faces a statutory maximum of 280 years in prison and is scheduled for sentencing on Nov. 30.

The U.S. Attorney's Office for the District of Nevada said on Aug. 24 that Kovar was found guilty after a nine-day trial on 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering. He is scheduled to be sentenced on Nov. 30 and faces a statutory maximum penalty of 280 years in prison.

Kovar owned Profit Connect from late 2017 through July 2021, presenting the Las Vegas company as a profitable operation that used artificial intelligence software running on a supercomputer to mine cryptocurrency and verify crypto transactions, according to prosecutors.

Investors were promised fixed annual returns of between 15% and 30%, along with a 100% money-back guarantee. Prosecutors said Kovar also claimed Profit Connect was supported by hundreds of millions of dollars in cryptocurrency reserves, despite knowing the company had no such reserves and could not generate the returns being offered.

Brent Kovar used new investor funds for repayments

Federal prosecutors said Profit Connect was not profitable and had no legitimate source of income capable of supporting its promised returns or guarantee.

Instead, Kovar used money received from investors to keep the business operating, purchase gifts for employees and buy a house for himself, the U.S. Attorney's Office said. Part of the money was also sent back to existing investors while being presented as proceeds generated through cryptocurrency mining and transaction verification.

The structure allowed Profit Connect to continue making payments despite lacking the investment activity and reserves Kovar had described to customers, according to prosecutors. By the time the operation ended, authorities said at least 400 people had invested a combined $24 million.
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During the earlier criminal case, federal prosecutors said Kovar used a website, YouTube video and PowerPoint presentation to market Profit Connect and persuade customers to invest. The business also leased space for a sales office and a warehouse that was presented as a data center. Investments were sold through an entity called Profit Connect Wealth Services.

The original February 2025 indictment charged Kovar with 12 wire fraud counts, three mail fraud counts and three money laundering counts and carried a maximum statutory exposure of 330 years if he were convicted on every charge. Following the trial, the jury returned guilty verdicts on 15 counts, leaving him with a maximum statutory exposure of 280 years.

Prosecutors say Profit Connect sold false guarantees

Investigators focused on several claims used to market the business, including Profit Connect's stated investment returns and the assertion that investors could recover all of their money.

Federal Deposit Insurance Corporation Office of Inspector General Special Agent in Charge Ryan Korner said Kovar also lured victims with false claims that the investment was insured by the FDIC.

"Mr. Kovar defrauded investors to enrich himself," Korner said, adding that investigators would continue working with other agencies to pursue financial fraud cases.

David Lowe, acting special agent in charge of IRS Criminal Investigation's San Francisco Field Office, said the operation relied on "false guarantees, fabricated profits and nonexistent reserves," which left investors facing financial losses.

FBI Las Vegas Special Agent in Charge Christopher S. Delzotto said victims believed they were investing in new technology, while prosecutors determined that the investment operation had been built on false representations.

First Assistant U.S. Attorney Sigal Chattah said the verdict demonstrated prosecutors' commitment to pursuing financial fraud involving manipulated records and millions of dollars in investor funds.

IRS Criminal Investigation, the FBI and the FDIC OIG investigated the case. Assistant U.S. Attorneys Joshua Brister and James Gaeta are prosecuting it, according to the Nevada U.S. Attorney's Office.

Crypto Ponzi prosecutions have produced mixed outcomes

Kovar's conviction follows several other U.S. criminal cases involving investment businesses that prosecutors said used cryptocurrency claims to attract investors while directing incoming money toward earlier customers or personal expenses.

A July crypto.news report on the BitClub Network case detailed the Justice Department's reported move to dismiss charges against founder Matthew Goettsche despite allegations that the crypto mining operation defrauded investors of $722 million. The reported decision would end the prosecution with prejudice if approved by the court.

BitClub had been accused of selling shares in cryptocurrency mining pools while overstating mining returns and using investor money to pay existing participants. The reported move to dismiss the case followed a 2025 Justice Department policy directing prosecutors not to use criminal enforcement as a substitute for digital-asset regulation.

Federal authorities have continued filing fraud cases where prosecutors allege conventional financial crimes involving digital assets.

In February, a report on the Goliath Ventures case covered the arrest of founder and CEO Christopher Alexander Delgado over an alleged $328 million Ponzi scheme. Prosecutors accused Delgado of promoting cryptocurrency liquidity pools that promised consistent monthly returns while directing investor funds toward earlier investors and personal spending.

The Justice Department alleged that Goliath Ventures collected more than $300 million even though only about $1 million was placed into legitimate cryptocurrency assets. Prosecutors said other funds were spent on expenses that included luxury travel, corporate events and multimillion-dollar homes.

Other cases have centered on promised crypto returns

Federal prosecutors brought another case in June against Tennessee resident Misam Abidi over an alleged $1.9 million scheme operated through Star Credit Holdings.

Court documents cited in coverage of the Star Credit Holdings case accused Abidi of making false statements about investment returns, company reserves and assets under management between 2020 and 2024. The charges included wire fraud, money laundering, operating an unlicensed money-transmitting business and filing false tax returns.

Separate federal actions have also moved from prosecution toward victim recovery. In April, the Justice Department opened a compensation process backed by more than $40 million in forfeited assets for people who lost money in OneCoin, according to coverage of the OneCoin victim fund.

Federal prosecutors have estimated that OneCoin took more than $4 billion from roughly 3.5 million people between 2014 and 2019. Co-founder Karl Sebastian Greenwood received a 20-year federal prison sentence in 2023, while fellow founder Ruja Ignatova remains a fugitive and is listed among the FBI's Ten Most Wanted.

Kovar's sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors, with the sentencing hearing currently set for Nov. 30, 2026.
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