Feds allege Las Vegas man bilked investors of $24M in ponzi scheme

A Las Vegas business owner made his first appearance in court Thursday in what investigators are calling a cryptocurrency fraud scheme that bilked hundreds of people out of close to $24 million.

According to a Justice Department news release on Friday, Brent Kovar, 58, faces 12 counts of wire fraud, three counts of mail fraud and three counts related to money laundering.

Federal officials say Kovar ran a “cryptocurrency ponzi scheme” from late 2017 until July 2021. Investigators found that Kovar’s company — called Profit Connect — misled investors, promising returns of “15-30%” and offering a “100% money-back guarantee.

The company was involved in cryptocurrency mining, through a special supercomputer, though investigators say Kovar used investor money to operate the company and buy “gifts for employees” and “a house for himself.”

Kovar, the charges allege, used a website, a YouTube pitch video, and PowerPoint presentations where he made various misrepresentations to potential investors. In all, investigators believe there to be at least 400 victims of Kovar’s misrepresentations.

In 2021, the Securities and Exchange Commission filed an “emergency action” and obtained a restraining order and asset freeze against a company called Profit Connect Wealth Services Inc., the arm of Profit Connect in which investment products were sold.

In that filing, Kovar’s mother, Joy Kovar, is referenced as being involved with the company. Nevada Secretary of State business entity records show both Kovars listed as officers for Profit Connect, though the business’ license is shown to be revoked.

There’s no mention of Joy Kovar in Friday’s news release.

Brent Kovar is set to face a jury trial in U.S. District Court for Nevada in April.

If convicted, Kovar faces up to 330 years in prison and a fine of not more than $4.5 million. Officials from the FBI, FDIC and IRS assisted in the investigation.

Contact Bryan Horwath at bhorwath@reviewjournal.com.