A federal jury has convicted Las Vegas businessman Brent Kovar of fraud and money laundering after prosecutors said his Profit Connect operation collected $24 million from at least 400 investors through false claims about cryptocurrency mining, investment returns and company reserves.
The Conviction
The U.S. Attorney's Office for the District of Nevada said Kovar was found guilty after a nine-day trial on 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering. He is scheduled to be sentenced on Nov. 30 and faces a statutory maximum penalty of 280 years in prison.
Kovar owned Profit Connect from late 2017 through July 2021, presenting the Las Vegas company as a profitable operation that used artificial intelligence software running on a supercomputer to mine cryptocurrency and verify crypto transactions. Investors were promised fixed annual returns of between 15% and 30%, along with a 100% money-back guarantee.
How the Scheme Worked
Prosecutors said Kovar also claimed Profit Connect was supported by hundreds of millions of dollars in cryptocurrency reserves, despite knowing the company had no such reserves and could not generate the returns being offered. Kovar used money received from investors to keep the business operating, purchase gifts for employees and buy a house for himself.
Part of the money was sent back to existing investors while being presented as proceeds generated through cryptocurrency mining and transaction verification. The structure allowed Profit Connect to continue making payments despite lacking the investment activity and reserves Kovar had described to customers. By the time the operation ended, at least 400 people had invested a combined $24 million.
Marketing the Fraud
Kovar used a website, YouTube video and PowerPoint presentation to market Profit Connect and persuade customers to invest. The business also leased space for a sales office and a warehouse that was presented as a data center. Investments were sold through an entity called Profit Connect Wealth Services.
The original February 2025 indictment charged Kovar with 12 wire fraud counts, three mail fraud counts and three money laundering counts, carrying a maximum statutory exposure of 330 years. Following the trial, the jury returned guilty verdicts on 15 counts, leaving him with a maximum statutory exposure of 280 years.
False FDIC Claims
Federal Deposit Insurance Corporation Office of Inspector General Special Agent in Charge Ryan Korner said Kovar also lured victims with false claims that the investment was insured by the FDIC. Investigators from the IRS, FBI and FDIC OIG worked together on the case.
The conviction follows several other U.S. criminal cases involving investment businesses that prosecutors said used cryptocurrency claims to attract investors while directing incoming money toward earlier customers or personal expenses. Federal authorities have continued filing fraud cases where prosecutors allege conventional financial crimes involving digital assets, even as the Justice Department has directed prosecutors not to use criminal enforcement as a substitute for digital-asset regulation.
