Brent Kovar, 58, of Las Vegas, has been charged with running a cryptocurrency fraud scheme that defrauded victims out of $24 million.
Mr. Kovar stole his victims’ hard-earned money by misrepresenting his investment company, including leading some victims to believe their investments were insured by the Federal Deposit Insurance Corporation, Nevada prosecutors said.
As the investigation established, from the end of 2017 to July 2021, Kovar managed the company he founded, Profit Connect. He claimed that he was mining cryptocurrencies and using artificial intelligence based on a supercomputer for this, which can provide investors with up to 30% per annum and a 100% guarantee of return of funds.
However, as the authorities found out, his company operated on the principle of a financial pyramid. Kovar used investors’ funds for personal expenses, and also paid off previous investors with this money. In total, he carried out 400 scams, which brought him $24 million.
Kovar’s jury trial is scheduled for April 8, 2025. He faces up to 330 years in prison and a maximum fine of $4,5 million.