Las Vegas Businessman Sentenced for Operating $24 Million Cryptocurrency Ponzi Scheme, Faces Up to 280 Years in Prison

BlockBeats News, August 25th, in Las Vegas, Nevada, USA, businessman Brent Kovar was convicted by a federal jury of operating a cryptocurrency Ponzi scheme, defrauding approximately 400 investors of around $24 million. Kovar was found guilty of 11 counts of wire fraud, 2 counts of mail fraud, and 2 counts of money laundering. Sentencing is scheduled for November 30th, with a maximum statutory sentence of up to 280 years.

Prior to this, Kovar, along with his mother Joy Kovar, operated Profit Connect, attracting investors from late 2017 to July 2021 through businesses such as blockchain mining. They claimed to have a AI-powered "supercomputer" that could provide a fixed annual return of 20% to 30% with monthly compounding.

The U.S. Department of Justice stated that Kovar actually used investors' funds to pay returns to other investors in a Ponzi-like scheme. He transferred millions of dollars to his mother's personal bank account, purchased gifts and personal real estate using investment funds. The U.S. SEC had already filed a fraud lawsuit against the Kovar mother and son in 2021, accusing them of illegally raising about $12 million from at least 277 investors. The amount involved in this federal criminal case has now increased to approximately $24 million.