Vegas business owner indicted for allegedly running cryptocurrency Ponzi scheme
LAS VEGAS, Nev. (KOLO) – A Las Vegas business owner has been indicted after the DOJ says he was running a cryptocurrency Ponzi scheme.
They say 58-year-old Brent Kovar misrepresented that his company was a profitable, up and running AI company that mined cryptocurrency, verified cryptocurrency transactions, paid fixed rates of return on investment, and provided a 100% money back guarantee.
The DOJ says Kovar obtained around $24 million from at least 400 investors.
“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 (FDIC OIG). “FDIC OIG is committed to identifying, and holding accountable, those who endanger our Nation’s financial system by victimizing others for their personal gain.”
Kovar has now been charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. His trial will begin on April 8.
The indictment against Kovar alleges that between late 2017 and July 2021, he owned Profit Connect, a Las Vegas based company purportedly using AI software on a supercomputer to mine and verify cryptocurrency transactions.
The DOJ alleges that Kovar falsely represented to investors that his company paid a fixed rate of return of 15 to 30% APR as well as the 100% money back guarantee. Instead, Kovar is accused of using the money to buy gifts for his employees, buy a house for himself, and to repay investors as if those repayments came from mining and verifying crypto.
Kovar also created a website, a YouTube video and a PowerPoint presentation in which he allegedly made the misrepresentation to influence customers to buy investments.
He is accused of sending money to investors via wire transfers, mailing checks through USPS and engaging in monetary transactions greater than $10,000 derived from unlawful activity.
If he is convicted, Kovar is facing a total of 330 years in prison and a fine of up to $4.5 million.
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