A Las Vegas businessman, Brent C. Kovar, 58, has been indicted for allegedly orchestrating a $24 million cryptocurrency Ponzi scheme through his company, Profit Connect. Prosecutors claim Kovar falsely promoted Profit Connect as an artificial intelligence-powered cryptocurrency mining firm that guaranteed fixed investment returns of 15%-30% APR and falsely implied FDIC backing. From 2017 to 2021, Kovar allegedly misused investor funds to cover business expenses, purchase personal assets, and repay earlier investors under false pretenses. He allegedly used a website, YouTube videos, and PowerPoint presentations to lure at least 400 investors. Charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering, Kovar faces up to 330 years in prison and $4.5 million in fines if convicted. His trial is set for April 8, 2025. The FBI, FDIC OIG, and IRS-CI investigated the case, with Assistant U.S. Attorney Daniel Schiess leading the prosecution.
Source: Bitcoin
