A Las Vegas businessman is in hot water for allegedly running a massive cryptocurrency Ponzi scheme. Brent C. Kovar faces serious charges and a potential life sentence.
The Scheme
Kovar allegedly ran a company called Profit Connect, promising investors huge returns (15-30% APR!) on their cryptocurrency investments, even guaranteeing 100% cashback. He used slick marketing materials—a website, YouTube videos, and PowerPoint presentations—to lure in around 400 investors, who collectively gave him about $24 million.
But the authorities say it was all a lie. Instead of using the money for cryptocurrency mining, Kovar allegedly used it to fund his lavish lifestyle, including employee gifts and a fancy house for himself. He even paid some investors back with fake profits to keep the scheme going.
The Charges
The feds are coming down hard on Kovar. He’s been charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he could face a whopping 330 years in prison and a $4.5 million fine. An FDIC agent involved in the case stressed their commitment to bringing Kovar to justice and protecting the financial system. They specifically highlighted Kovar’s misleading claims about FDIC backing for investments.
What’s Next?
Kovar’s trial is set for April 8, 2025, before Judge Jennifer A. Dorset. The outcome will determine his fate and send a message about the consequences of running elaborate financial scams.
