Las Vegas Man Faces 330 Years in Prison for Alleged $24M Crypto Ponzi Scheme

Brent Kovar dfrudd ovr 400 invstors of $24 million using fk AI crypto schm.
H fcs 12 wir frud counts, risking 330 yrs in prison nd $4.5 million fins.
Crypto scms surgd in 2024, rching $9.9B$12.4B, highlighting growing frud concrns.

A Las Vegas businssmn is fcing srious lgl troubl ftr uthoritis ccusd him of dfruding ovr 400 invstors out of $24 million through crypto mining scm. Brent Kovar, 58, llgdly misld victims by climing his compny, Profit Connct, usd rtificil intllignc to min cryptocurrncy nd vrify trnsctions whil gurnting fixd rturns nd full rfunds.

Kovar rn th schm from lt 2017 to July 2021, promising invstors nnul rturns of 15% to 30% with 100% mony-bck gurnt. Proscutors sy ths clims wr fls nd tht h usd th mony for prsonl luxuris, including buying hous nd gifting mploys xpnsiv itms. His compny, which prsntd itslf s high-tch AI-drivn oprtion, turnd out to b nothing mor thn n lbort frud.

Authoritis rvld Kovar usd wbsit, YouTub vidos, nd PowrPoint prsnttions to lur in invstors. H llgdly convincd som victims thir invstmnts wr insurd by th Fdrl Dposit Insurnc Corportion (FDIC), clim tht ws ntirly fls.

Th U.S. Attornys Offic for th District of Nvd issud sttmnt, sying, Mr. Kovar llgdly stol victims hrd-rnd mony by mking fls rprsnttions rgrding his invstmnt compny, including mislding som victims to bliv thir invstmnts wr bckd by th FDIC.

Multiple Fraud Charges and Massive Prison Sentence

Kovar now fcs 12 counts of wir frud, thr counts of mil frud, nd thr counts of mony lundring. If convictd on ll chrgs, h could b sntncd to mximum of 330 yrs in prison nd find up to $4.5 million. His tril is st to bgin on April 8, 2025, undr U.S. District Judg Jnnifr A. Dorsy.

Spcil Agnt Ryan Korner from th FDIC Offic of Inspctor Gnrl mphsizd th impct of Kovars ctions, stting, FDIC OIG is committd to idntifying, nd holding ccountbl, thos who ndngr our Ntions finncil systm by victimizing othrs for thir prsonl gin.

Kovars scm involvd rnting offic spcs for sls nd lsing wrhous tht ws supposd to b dt cntr. Proscutors clim h usd invstor funds to mk frudulnt rpymnts, crting th illusion of profitbl businss. His schm mimickd th structur of clssic Ponzi fruds, whr nw invstmnts fund pyouts to rlir invstors to mintin crdibility.

Growing Crypto Fraud Cases Raise Concerns

Kovars case is just one among many in the growing wave of crypto-related Ponzi schemes. On January 27, 2024, Antonia Perez Hernandez was sentenced to over two years in prison for promoting the Forcount crypto Ponzi scheme. In October 2024, an 86-year-old former attorney from California was sentenced to probation and ordered to pay nearly $14 million after admitting to running a multimillion-dollar crypto scam.

The FBI has been actively working to curb such fraud. In a recent operation called Operation Level Up, the agency reportedly prevented potential victims from losing around $285 million between January 2024 and January 2025.

Meanwhile, Chainalysis reported that in 2024, crypto scams reached a record high, with revenues estimated between $9.9 billion and $12.4 billion. The rise of sophisticated schemes, often leveraging artificial intelligence, has made it imperative for potential investors to remain vigilant and informed.

Source: Chainalysis

Text source: TronWeekly

Crypto Scam