Key Takeaways
- • Brent Kovar, owner of Las Vegas-based Profit Connect, was convicted on 15 federal counts (11 wire fraud, 2 mail fraud, 2 money laundering) in a $24 million cryptocurrency Ponzi scheme that defrauded at least 400 investors over a three-year period from late 2017 through July 2021.
- • Profit Connect falsely marketed guaranteed annual returns of 15% to 30% with a 100% money-back guarantee, claiming to operate AI-powered cryptocurrency mining technology on a supercomputer—claims prosecutors proved were entirely fabricated with no legitimate income generated.
- • Kovar faces a statutory maximum sentence of 280 years in prison, with sentencing scheduled for November 30, 2026, following the nine-day federal trial in Nevada that concluded with jury verdicts on all counts.
- • The investigation was jointly conducted by the FBI, IRS Criminal Investigation, and the FDIC Office of Inspector General, underscoring the coordinated federal response to financial fraud affecting depositor-like protections and interstate commerce.
- • The conviction represents a significant enforcement action against cryptocurrency-linked fraud schemes targeting retail investors with false technological claims and guaranteed return structures that violate securities law and anti-fraud statutes.
Summary
A federal jury in Nevada has convicted Las Vegas businessman Brent Kovar of orchestrating a $24 million cryptocurrency Ponzi scheme through his company, Profit Connect, following a nine-day trial that concluded on August 24, 2026. Kovar was found guilty on 15 federal counts: 11 counts of wire fraud, 2 counts of mail fraud, and 2 counts of money laundering, according to the U.S. Attorney's Office for the District of Nevada. The conviction closes a major enforcement action against a fraudulent cryptocurrency investment operation that victimized at least 400 individual investors.
Profit Connect operated as a purported investment vehicle from late 2017 through July 2021, during which Kovar marketed the company as a sophisticated cryptocurrency mining operation. The scheme promised investors fixed annual returns ranging from 15% to 30%, coupled with a guarantee of 100% money-back assurance—hallmarks of classic Ponzi structure. According to prosecutors, Kovar falsely claimed that Profit Connect deployed artificial intelligence software running on a supercomputer to mine cryptocurrency and verify blockchain transactions. Federal prosecutors demonstrated that these technological claims were entirely fabricated and that the company generated no legitimate income streams capable of servicing the promised returns to investors.
Kovar now faces a statutory maximum sentence of 280 years in prison, with sentencing scheduled for November 30, 2026. The investigation was conducted jointly by the FBI, IRS Criminal Investigation, and the FDIC Office of Inspector General, reflecting the multi-agency coordination required to address fraud affecting both interstate commerce and financial system integrity. First Assistant U.S. Attorney Sigal Chattah emphasized that financial fraud undermines foundational trust in the economic system, underscoring the institutional significance of the prosecution.
Profit Connect operated as a purported investment vehicle from late 2017 through July 2021, during which Kovar marketed the company as a sophisticated cryptocurrency mining operation. The scheme promised investors fixed annual returns ranging from 15% to 30%, coupled with a guarantee of 100% money-back assurance—hallmarks of classic Ponzi structure. According to prosecutors, Kovar falsely claimed that Profit Connect deployed artificial intelligence software running on a supercomputer to mine cryptocurrency and verify blockchain transactions. Federal prosecutors demonstrated that these technological claims were entirely fabricated and that the company generated no legitimate income streams capable of servicing the promised returns to investors.
Kovar now faces a statutory maximum sentence of 280 years in prison, with sentencing scheduled for November 30, 2026. The investigation was conducted jointly by the FBI, IRS Criminal Investigation, and the FDIC Office of Inspector General, reflecting the multi-agency coordination required to address fraud affecting both interstate commerce and financial system integrity. First Assistant U.S. Attorney Sigal Chattah emphasized that financial fraud undermines foundational trust in the economic system, underscoring the institutional significance of the prosecution.
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