Las Vegas, NV (Dept. of Justice) - A Las Vegas business owner face charges that he allegedly misrepresented his company as a profitable, up-and-running artificial intelligence company that mined cryptocurrency, verified cryptocurrency transactions, paid fixed rates of return on investments, and provided a 100% money back guarantee.
In total, the defendant obtained approximately $24 million from at least 400 investors.
Brent C. Kovar, 58, is charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. Trial has been scheduled to begin on April 8, 2025.
According to allegations, from late 2017 to July 2021, Kovar owned Profit Connect, a Las Vegas-based company that purportedly used artificial intelligence software on a supercomputer to mine cryptocurrency and verify cryptocurrency transactions. He falsely represented to investors that Profit Connect paid a fixed rate of return of 15%-30% APR and provided a 100% money-back guarantee.
In reality, Kovar used investor money to operate Profit Connect, buy gifts for employees, buy a house for himself, and repay investors as if those repayments came from mining cryptocurrency and verifying cryptocurrency transactions.
As part of the scheme, Kovar created a website, a YouTube video, and a PowerPoint presentation in which he made the misrepresentations to influence customers to buy investments. Furthermore, he leased office space for a sales office and a warehouse for a data center.
As alleged, investments were sold through an entity known as Profit Connect Wealth Services. Kovar sent money via wire transfers to investors, he mailed checks through the U.S. Postal Service, and he engaged in monetary transactions greater than $10,000 that were derived from unlawful activity.
If convicted, Kovar faces a total maximum statutory penalty of 330 years in prison and a fine of up to $4,500,000.