Las Vegas businessman Brent C. Kovar charged with $24M crypto fraud scheme, facing 330 years prison for deceiving 400 investors with false promises.
A Las Vegas businessman, Brent C. Kovar, appeared in court yesterday. He faces multiple charges for running a fraudulent cryptocurrency investment scheme. The fraudulent operation acquired $24 million by obtaining investments from more than 400 interested parties.
The criminal complaint states that Profit Connect published false information about using artificial intelligence for cryptocurrency mining and transaction verification. He provided investors with two benefits including the option to earn 15% to 30% yearly depending on their investment plus they would obtain full repayment of their money. However, these claims were false.
Special Agent Ryan Korner from the FDIC Office of Inspector General declared that Kovar presented misleading information by saying victims would have their deposits insured under the FDIC system. The FDIC OIG dedicated itself to pursuing prosecution against all financial fraud individuals, according to Special Agent Ryan Korner.
Kovar’s $24M Crypto Scheme Defrauded 400 Investors
The authorities have charged Kovar at 58 years old for 12 counts of wire fraud as well as three counts each of mail fraud and money laundering. The legal proceedings against Kovar will take place on April 8, 2025, under the jurisdiction of Judge Jennifer A. Dorsey.
Between 2017 and 2021 Kovar allegedly redirected investor funds to purchase personal items while paying both employee bonuses and purchasing his house. The funds he diverted were used to purchase personal goods along with presents for employees and construction of his private residence. He disguised payments to earlier investors using fresh investor finance while marketing them as cryptocurrency operation returns.
Kovar established a website and created promotional videos as well as presentations, which included fabrications to draw in investors. The company secured facilities with two purposes: One for commercial sales operations and another for serving as its data center warehouse. Profit Connect Wealth Services operated as the sales agency through which the investments were distributed.
Authorities identified several payment methods Kovar used to transfer funds. Specifically, he wired money and sent postal mail checks. Moreover, he made illegal payments exceeding $10,000 using funds from unlawful activities.
A guilty conviction against Kovar exposes him to potential imprisonment for 330 years. The court will impose fines amounting to $4.5 million on him. The sentencing of his case lies with a federal judge who needs to follow U.S. Sentencing Guidelines along with other relevant legal aspects.
