Las Vegas Man 24 million Dollar Cryptocurrency Ponzi Scheme, Faces 330 Years in Prison

According to the official website of the Department of Justice, Profit Connect founder Brent C. Kovar is accused of using artificial intelligence mining as a guise to commit cryptocurrency investment fraud, illegally absorbing $24 million in funds, involving at least 400 investors. Prosecutors allege that Kovar promised a fixed annual rate of return of 15% -30% and falsely claimed that the investment was covered by FDIC insurance. The actual funds were used to pay old investors, buy houses, give gifts and other non-investment purposes.
Kovar faces 12 counts of telegraphic transfer fraud, three counts of mail fraud, and three counts of money laundering, which carries a maximum sentence of 330 years in prison. The case will go to trial on April 8, 2025. The FBI, FDIC OIG, and IRS-CI are jointly investigating. The case is being prosecuted by Assistant U.S. Attorney Daniel Schiess.