Las Vegas Man Charged in $24 Million Cryptocurrency Fraud Scheme

• Brent Kovar allegedly defrauded over 400 investors, raising $24 million through false cryptocurrency investment claims.
• Authorities say Kovar misused investor funds for real estate and repaid prior investors to simulate mining profits.
• If convicted, Kovar faces up to 330 years in prison and a $4.5 million fine for wire fraud, mail fraud, and money laundering.

A Las Vegas resident has been charged with multiple fraud and money laundering offenses related to an alleged cryptocurrency investment scheme. Brent Kovar, 58, faces 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering, according to the United States Department of Justice.

Allegations of Investment Fraud

Kovar purportedly operated a company called Profit Connect between late 2017 and July 2021. Authorities allege that he misrepresented the firm’s activities, claiming it utilized supercomputer-driven artificial intelligence to generate high cryptocurrency returns. Investors were reportedly promised up to a 30% annual percentage return and assured of a 100% money-back guarantee.

The Justice Department states that Kovar used investor funds for personal gain, including purchasing real estate and maintaining company operations. Some funds were allegedly directed to repay earlier investors, creating the illusion of profits from cryptocurrency mining.

Financial Impact on Investors

Investigators report that over 400 individuals invested in Profit Connect, resulting in approximately $24 million in collected funds. Court documents indicate that victims were led to believe their investments were secure. Some were reportedly misled into thinking their funds were backed by the Federal Deposit Insurance Corporation (FDIC).

The Federal Deposit Insurance Corporation Office of Inspector General head Ryan Korner shared that Mr. Kovar stole victims’ funds through deceptive statements about his investment operations particularly through false claims about FDIC-backed investments to certain victims.

Kovar is scheduled for a jury trial on April 8, 2025. If convicted, he faces a maximum sentence of 330 years in prison. Additionally, he could be subject to a fine of up to $4.5 million.

Federal authorities continue to investigate the case. Prosecutors are working to recover misappropriated funds and provide restitution to affected investors.