Las Vegas Businessman Faces $24M Crypto Fraud Charges
In a stunning turn of events, Las Vegas businessman Brent C. Kovar found himself at the center of a $24 million cryptocurrency fraud scheme that has rocked the financial world. Charged with deceiving over 400 investors through false promises of lucrative returns, Kovar now faces a potential 330-year prison sentence for his alleged crimes.
The elaborate scheme orchestrated by Kovar under the guise of Profit Connect promised unsuspecting investors the opportunity to earn impressive yearly returns of 15% to 30% through the use of artificial intelligence for cryptocurrency mining and transaction verification. Additionally, he assured them of full repayment of their initial investments. However, as investigations revealed, these promises were nothing more than a web of deceit spun by Kovar to lure in unsuspecting victims.
Special Agent Ryan Korner from the FDIC Office of Inspector General shed light on Kovar’s tactics, highlighting how he misled investors by falsely claiming their deposits were insured under the FDIC system. With a commitment to combat financial fraud, the FDIC OIG vowed to hold individuals like Kovar accountable for their actions.
Kovar’s $24M Crypto Scheme Defrauded 400 Investors
At the age of 58, Kovar now faces a litany of charges including 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. Scheduled to appear in court on April 8, 2025, before Judge Jennifer A. Dorsey, Kovar’s fate hangs in the balance as the legal system seeks to bring him to justice.
Between the years 2017 and 2021, Kovar allegedly diverted investor funds to finance his lavish lifestyle, purchasing personal items, paying employee bonuses, and even constructing his own home. To cover his tracks, he used fresh investor funds to pay earlier investors, all the while masquerading the payments as returns from his cryptocurrency operations.
Setting up an elaborate facade, Kovar established a website, created promotional videos, and made presentations filled with falsehoods to attract potential investors. Profit Connect Wealth Services acted as the front for distributing investments, utilizing facilities for both commercial sales and data center operations.
Authorities uncovered a web of illicit financial transactions orchestrated by Kovar, ranging from wire transfers to postal checks and illegal payments exceeding $10,000 from illicit activities. The intricate web of deceit spun by Kovar has left a trail of devastation in its wake, impacting the lives of hundreds of unsuspecting investors.
As the legal battle against Kovar unfolds, the prospect of a 330-year prison sentence looms large, along with fines totaling $4.5 million. The sentencing of his case rests in the hands of a federal judge tasked with following U.S. Sentencing Guidelines and other legal considerations to deliver justice in this complex case.
