Crypto Scam: US Authorities Indict Las Vegas Man In $24 Million Ponzi Scheme

US authorities in the state of Nevada have accused Las Vegas business owner Brent C. Kovar of allegedly running a million-dollar cryptocurrency Ponzi scheme. If found guilty, Kovar faces a long prison term with a fine of $4.5 million.

US Government Vs. Brent C. Kovar

In a press release on February 14, the US Attorney’s Office of the District of Nevada unveiled an indictment against Brent Kovar for allegedly running a pyramid scheme disguised as a Las Vegas-based crypto mining company.

According to US authorities, Kovar claimed to operate a profitable, AI-integrated digital asset mining firm known as Profit Connect with fixed interest rates of 15%-30% APR and a 100% cash back guarantee on investments. 

In marketing Profit Connect, the defendant allegedly utilized a website, YouTube video, and PowerPoint presentation which provided a false image of the business that encouraged investments. In total, Kovar received an estimated $24 million from about 400 investors.

However, authorities claim that the business owner merely used investment funds to market and operate the crypto Ponzi scheme and spend on expenses such as gifts for employees and a personal residence for himself.

In presenting his pyramid scheme as a legitimate business, the plaintiff stated that Kovar also repaid some investors with false profits via wire transfer and checks through the US Postal Service as if generated from the purported crypto mining activity.

Commenting on the indictment, Ryan Korner, an officer with the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) and active agent on this case expressed the agency’s commitment to proving Brent Kovar guilty.

Korner Said: 

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. The FDIC OIG is committed to identifying, and holding accountable, those who endanger our Nation’s financial system by victimizing others for their personal gain.

Potential Legal Consequences 

According to the US Attorney’s Office in Nevada, Kovar is charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. The defendant is expected to appear before US Judge Jennifer A. Dorset in a jury trial that will commence on April 8, 2025.

If found guilty, Brent Kovar faces a potential prison sentence of 330 years and a maximum fine of $4.5 million based on the discretion of the judge in accordance with the US Sentencing Guidelines and other legal factors.

In other news, the crypto market remained valued at $3.18 trillion following a 0.07% decline in the past day.