Brent Kovar Accused of Defrauding Over 400 Investors
A Las Vegas man has been charged by a US regulator for allegedly defrauding more than 400 investors out of $24 million through a fraudulent AI-driven cryptocurrency mining scheme. Brent Kovar, the accused, reportedly lured investors with promises of lucrative fixed returns and a 100% money-back guarantee, which turned out to be false.
The US Attorney’s Office for the District of Nevada stated that Kovar misled investors by falsely representing his company and, in some cases, making them believe their investments were backed by the Federal Deposit Insurance Corporation (FDIC).
False Promises and Lavish Spending
Kovar allegedly operated the Ponzi scheme from late 2017 to July 2021 under the guise of his company, Profit Connect, which claimed to use artificial intelligence to mine and verify cryptocurrency transactions. Investors were promised fixed annual returns of 15% to 30%, along with a guarantee that their money would be fully refunded if requested.
However, investigations revealed that Kovar was instead using the funds to finance a lavish lifestyle, purchasing gifts for employees, acquiring a house for himself, and repaying earlier investors using money from new recruits, rather than legitimate mining profits.
“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,” authorities stated.
To attract investors, Kovar used various promotional materials, including a website, a YouTube video, and PowerPoint presentations. He now faces multiple charges, including 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he could face a maximum sentence of 330 years in prison and a fine of up to $4.5 million.
FBI’s Crackdown on Crypto Scams
Kovar’s case comes amid a growing number of cryptocurrency-related Ponzi schemes, prompting increased regulatory scrutiny.
On January 27, Antonia Perez Hernandez, a promoter of the Forcount crypto Ponzi scheme, was sentenced to more than two years in prison after pleading guilty to conspiracy to commit wire fraud.
In October 2024, an 86-year-old former attorney from California was sentenced to five years of probation and ordered to pay nearly $14 million in restitution for his involvement in a multimillion-dollar crypto Ponzi scheme.
Meanwhile, the FBI’s “Operation Level Up” initiative reported saving potential victims of crypto fraud approximately $285 million between January 2024 and January 2025. Authorities continue to warn investors to be cautious of schemes that promise guaranteed high returns, as such assurances often indicate fraudulent activity.
