https://news3lv.com/news/local/las-vegas-businessman-indicted-in-24m-cryptocurrency-ponzi-scheme-faces-up-to-330-years

Brent C. Kovar, 58, the owner of a Las Vegas-based company, has been indicted on charges related to a $24 million cryptocurrency Ponzi scheme.

Kovar made his initial court appearance yesterday, facing allegations of misrepresenting his company, Profit Connect, as a profitable artificial intelligence firm involved in cryptocurrency mining and transaction verification.

"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," said Ryan Korner, Special Agent in Charge with the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). "FDIC OIG is committed to identifying, and holding accountable, those who endanger our Nation’s financial system by victimizing others for their personal gain."

Kovar is charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering.

His jury trial is scheduled to begin on April 8 before United States District Judge Jennifer A. Dorsey.

According to the indictment, from late 2017 to July 2021, Kovar falsely claimed that Profit Connect paid a fixed rate of return of 15%-30% APR and offered a 100% money-back guarantee.

Instead, he allegedly used investor funds to operate the company, purchase gifts for employees, buy a house, and repay investors under the guise of profits from cryptocurrency activities.

Kovar reportedly used a website, a YouTube video, and a PowerPoint presentation to mislead investors.

He also leased office space and a warehouse for a purported data center.

Investments were sold through Profit Connect Wealth Services, and Kovar allegedly conducted wire transfers, mailed checks, and engaged in transactions over $10,000 derived from unlawful activities.

If convicted, Kovar faces a maximum statutory penalty of 330 years in prison and a fine of up to $4.5 million.