A Las Vegas business owner appeared in court recently, accused of misrepresenting his company as a profitable artificial intelligence enterprise involved in cryptocurrency mining and transactions. The defendant allegedly obtained approximately $24 million from over 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," stated 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."
Brent C. Kovar, aged 58, faces charges including 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. His jury trial is set to commence on April 8, 2025, under United States District Judge Jennifer A. Dorsey.
The indictment alleges that between late 2017 and July 2021, Kovar owned Profit Connect, a Las Vegas-based company that claimed to use artificial intelligence software for cryptocurrency mining and transaction verification. He reportedly promised investors fixed returns of 15%-30% APR with a full money-back guarantee. However, it is alleged that he used investor funds for personal expenses such as operating Profit Connect, buying gifts for employees, purchasing a house for himself, and repaying investors under false pretenses.
Kovar allegedly used various means such as a website, YouTube video, PowerPoint presentation to attract investors. He also leased office space for sales operations and a warehouse for data storage under the guise of Profit Connect Wealth Services. Allegedly engaging in illegal monetary transactions over $10,000 through wire transfers and mailed checks via the U.S. Postal Service was part of the scheme.
If found guilty, Kovar could face up to 330 years in prison along with fines amounting to $4.5 million. The final sentence will be determined by a federal district court judge based on U.S. Sentencing Guidelines and other legal factors.
The announcement was made by Acting United States Attorney Sue Fahami; Special Agent in Charge Spencer L. Evans from the FBI Las Vegas Division; Special Agent in Charge Ryan Korner from FDIC OIG; and Special Agent in Charge Carissa Messick from IRS Criminal Investigation (IRS-CI) Phoenix Field Office.
The investigation was conducted by the FBI, FDIC OIG, and IRS-CI with Assistant United States Attorney Daniel Schiess leading the prosecution.
It is important to note that an indictment is only an allegation; all defendants are presumed innocent until proven guilty beyond reasonable doubt in court.