Crypto▼ Bearish
Brent Kovar Convicted in $24M Crypto Mining Ponzi Scheme
A federal jury found Brent Kovar guilty of wire fraud and money laundering after his Profit Connect operation promised 15-30% returns on fake crypto mining. He faces up to 280 years in prison.
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A federal jury in Nevada convicted Las Vegas businessman Brent Kovar of fraud and money laundering, concluding that his Profit Connect operation collected $24 million from at least 400 investors through false claims about cryptocurrency mining and investment returns.
The U.S. Attorney's Office for the District of Nevada announced the verdict on Aug. 24 after a nine-day trial. Kovar was found guilty on 11 counts of wire fraud, along with charges of mail fraud and money laundering. He faces a statutory maximum of 280 years in prison at a sentencing hearing scheduled for Nov. 30, 2026.
Prosecutors said Kovar owned Profit Connect from late 2017 through July 2021. He presented the company as a profitable business that used artificial intelligence software running on a supercomputer to mine cryptocurrency and verify transactions. Investors were promised fixed annual returns between 15% and 30%, backed by a 100% money-back guarantee. Kovar also claimed Profit Connect held hundreds of millions of dollars in cryptocurrency reserves, according to the U.S. Attorney's Office.
Federal prosecutors said Profit Connect had no legitimate source of income capable of supporting those returns or the guarantee. Instead, Kovar used incoming investor money to keep the operation running, buy gifts for employees and purchase a house for himself. Part of the funds was sent back to earlier investors, presented as mining profits.
The structure allowed Profit Connect to continue making payments despite lacking the investment activity and reserves Kovar had described, authorities said. By the time the scheme ended, at least 400 people had invested a combined $24 million.
Kovar marketed Profit Connect through a website, a YouTube video and a PowerPoint presentation, prosecutors said. The business leased 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, carrying a maximum exposure of 330 years. After the trial, the jury returned guilty verdicts on 15 counts, leaving a maximum of 280 years.
Investigators focused on several claims used to market the business, including the 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 FDIC-insured.