Las Vegas man indicted for obtaining $24 million from at least 400 investors in alleged crypto Ponzi scheme

Brent Kovar, a 58-year-old man from Las Vegas was charged with 12 counts of wire fraud, three counts of mail fraud and three counts of money laundering related to his alleged role in a fraudulent cryptocurrency scheme. 

Kovar purportedly owned a firm called Profit Connect from late 2017 to July 2021. Kovar allegedly claimed that the company used supercomputer-powered artificial intelligence to mine cryptocurrency, asserting that investors could get up to a 30% APR and receive a 100% money-back guarantee, according to a Friday release from the United States Department of Justice.

However, Kovar supposedly used investor funds to operate the company and purchase real estate while also repaying prior investors as if from crypto mining proceeds, the Justice Department release said. In all, Kovar allegedly gained $24 million from 400 or more investors from the scheme. 

"Mr. Kovar allegedly stole victims’ hard-earned money by making false representations regarding his investment company, including misleading some victims to believe their investments were backed by the FDIC,” said Ryan Korner, Special Agent in Charge with the Federal Deposit Insurance Corporation Office of Inspector General, said in a statement. 

Kovar's jury trial is set for April 8, 2025. He faces up to 330 years in prison and a maximum fine of $4.5 million.