Las Vegas Man Charged In $24 Million Crypto Fraud Scheme

According to Cointelegraph, a Las Vegas resident has been charged by a U.S. regulator for allegedly defrauding over 400 investors out of $24 million through a deceptive AI-driven cryptocurrency mining scheme. The accused, Brent Kovar, is said to have falsely promised investors lucrative fixed returns and a 100% money-back guarantee, misleading them into believing their investments were secure and backed by the Federal Deposit Insurance Corporation (FDIC). Kovar reportedly deceived investors from late 2017 to July 2021, claiming that his company, Profit Connect, which purported to be an AI firm involved in crypto mining and transaction verification, offered a fixed annual return of 15% to 30%. Despite these claims, it is alleged that Kovar used the funds to support his extravagant lifestyle, including purchasing gifts for employees, buying a house, and repaying investors under the guise of profits from cryptocurrency activities. To attract investors, Kovar utilized a website, a YouTube video, and PowerPoint presentations. He now faces 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he could face a maximum statutory penalty of 330 years in prison and a fine of up to $4.5 million. This case is part of a broader crackdown on crypto-related Ponzi schemes. Recently, Antonia Perez Hernandez, a promoter of the Forcount crypto Ponzi scheme, was sentenced to over two years in prison after pleading guilty to conspiracy to commit wire fraud. Additionally, in October 2024, an 86-year-old former attorney from California received five years probation and was ordered to pay nearly $14 million for his involvement in a multimillion-dollar crypto Ponzi scheme. Meanwhile, the FBI's "Operation Level Up" has reportedly saved potential crypto fraud victims approximately $285 million between January 2024 and January 2025, highlighting the ongoing efforts to combat cryptocurrency fraud.