Profit Connect Founder Brent Kovar Found Guilty in $24M Crypto Ponzi Scheme

Profit Connect founder Brent Kovar has been reportedly found guilty of running a $24 million crypto Ponzi scheme. After a nine-day trial, the Las Vegas man was convicted on multiple counts of wire fraud, mail fraud, and money laundering.

According to the US federal jury’s ruling, Kovar attracted investors through fake promises of high returns. The Ponzi scheme defrauded at least 400 investors, with Kovar amassing customer funds and spending them for personal expenses.

Profit Connect’s Kovar convicted in a crypto Ponzi scheme

The US Attorney’s Office for the District of Nevada released an official statement regarding the conviction of Profit Connect founder Brent Kovar. He is supposed to be sentenced on November 30, 2026, with a statutory maximum penalty of up to 280 years in prison.

IRS Criminal Investigation’s San Francisco Field Office Acting Special Agent in Charge David Lowe stated,

“Today’s verdict reflects the seriousness of Brent Kovar’s scheme and the impact it had on hundreds of investors. Criminals who build operations on false guarantees, fabricated profits and nonexistent reserves, erode trust in our financial system, and leave victims facing real financial harm. IRS-CI special agents and professional staff are well suited and will continue to follow the money and hold accountable those who exploit emerging technologies to commit fraud.”

Reportedly, the Profit Connect founder ran the company as a crypto business that supposedly generated income through crypto mining. The company also claimed to provide opportunities for investing in forex, stocks, and other assets. Kovar also promoted a so-called supercomputer with AI capabilities. Kovar, and his mother, Joy Kovar, claimed that it could deliver returns of 20-30% annually.

However, investigations revealed that the company hasn’t generated the promised returns. In 2021, the US Securities and Exchange Commission (SEC) accused the Kovars of raising $12 million from about 277 investors.

How did Kovar spend investor funds?

Instead of providing returns, the Profit Connect founder moved millions of investor funds to Joy Kovar’s personal bank account. Some of the new funds were used to make payments to other investors, which usually happens in Ponzi schemes. 

According to prosecutors, Kovar used these funds for personal expenses. He allegedly bought a house and purchased gifts for employees. Reports claim that he presented Profit Connect as a company with hundreds of millions of dollars in crypto reserves and a 100% money-back guarantee. However, the official statement read,

“Kovar knew his company was not profitable, had no reserves, did not and could not pay the fixed rates of return to investors, and had no legitimate means for the money-back guarantee. He used investor money to operate Profit Connect, to buy gifts for employees, to buy a house for himself, and to repay investors as if those repayments came from mining cryptocurrency and verifying cryptocurrency transactions.”