280 Years in Prison Looms for Las Vegas Businessman in Crypto Case

Brent Kovar promised 30% returns and a 100% money-back guarantee. He is now facing up to 280 years in prison.
ByChayanika Deka

A federal jury has convicted Las Vegas businessman Brent C. Kovar of defrauding at least 400 investors of $24 million through a crypto investment scheme.

Kovar owned Profit Connect, a Las Vegas-based company that operated from late 2017 through July 2021 and claimed to use artificial intelligence software on a supercomputer to mine crypto and verify transactions.

Crypto Fraud Conviction

According to the US Justice Department, Kovar falsely told investors that Profit Connect was profitable and could provide fixed annual returns of 15% to 30%, along with a 100% money-back guarantee.

He also claimed the company was backed by hundreds of millions of dollars in crypto reserves. Prosecutors said Kovar knew those claims were false. Profit Connect was not profitable, had no crypto reserves, could not pay the promised returns, and had no legitimate way to provide the money-back guarantee.

Instead, the businessman used money from investors to keep the company operating, purchase gifts for employees, and buy a house for himself. He also used the funds to repay other investors while making it appear that the money had come from crypto mining and transaction verification.

After a nine-day trial, the jury found Kovar guilty on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office stated,

“The victims in this case thought they were engaged in revolutionary technological advancement, but it was merely a deception crafted by the falsehoods and trickery of Mr. Kovar.”

Meanwhile, Special Agent in Charge Ryan Korner with the Federal Deposit Insurance Corporation Office of Inspector General said Kovar also falsely told investors that their investment was insured by the FDIC. He is scheduled to be sentenced on November 30, 2026, and faces a statutory maximum penalty of 280 years in prison.

Source: cryptopotato.com