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Las Vegas crypto fraud convict faces up to 280 years in prison
The jury found Brent Kovar used wire fraud, mail fraud, and money laundering tied to a $24 million scheme that promised investors 15% to 30% fixed annual returns.
A federal jury convicted Las Vegas businessman Brent C. Kovar over a cryptocurrency fraud scheme that prosecutors said raised $24 million from at least 400 investors. The Block reports Kovar was found guilty on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.
According to The Block, Kovar owned Profit Connect, a Las Vegas-based company that operated from late 2017 to July 2021. The company told investors it used artificial intelligence software on a supercomputer to mine crypto and verify transactions.
Prosecutors said Kovar marketed Profit Connect as a profitable venture, offering fixed annual returns of 15% to 30% and a 100% money-back guarantee. The Block reports prosecutors also alleged Kovar falsely claimed the firm held hundreds of millions of dollars in cryptocurrency reserves and that investors were insured by the Federal Deposit Insurance Corporation.
The Block added that Kovar faces a statutory maximum of 280 years in prison and is scheduled to be sentenced on Nov. 30. An FBI statement quoted by The Block said victims were misled by what authorities described as deception rather than real technological advancement.
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