Fake AI Supercomputer Pitch Lands Las Vegas Businessman in $24M Crypto Ponzi Conviction

Brent Kovar has been convicted for orchestrating a cryptocurrency Ponzi scheme that allegedly took about $24 million from at least 400 investors.

The Las Vegas businessman was found guilty after a nine-day trial, according to the U.S. Attorney’s Office for the District of Nevada. The jury convicted him on 11 wire fraud counts, two mail fraud counts and two money laundering charges.

Kovar is scheduled for sentencing on Nov. 30 and faces a statutory maximum sentence of up to 280 years.

The case surfaced in 2021 when the U.S. Securities and Exchange Commission accused Kovar and his mother, Joy Kovar, of fraudulently collecting $12 million from at least 277 investors.

The pair marketed their company, Profit Connect, as a cryptocurrency operation that generated revenue through blockchain mining while also investing in assets such as foreign exchange and stocks.

Their pitch centered on an alleged AI-powered supercomputer that they claimed could deliver fixed returns of 20% to 30% annually, with the profits compounded monthly.

Regulators later alleged that the promised investment activity did not occur as represented. Millions of dollars were allegedly transferred to Joy Kovar’s personal bank account, while payments to some investors were funded with money from other participants.

FBI Las Vegas Special Agent in Charge Christopher S. Delzotto said investors were led to believe they were participating in a breakthrough technology venture, but the operation was based on deception and misleading claims.

Kovar ran Profit Connect from Las Vegas between late 2017 and July 2021. He allegedly portrayed the company as profitable, claiming it held hundreds of millions of dollars worth of cryptocurrency and offering investors a 100% money-back guarantee.

Authorities also alleged that investor funds were used for personal and company expenses, including employee gifts and the purchase of a home for Kovar.