Las Vegas Businessman Convicted in $24M Crypto Ponzi Scheme

A federal jury in Nevada has convicted Las Vegas businessman Brent Kovar of running a $24 million cryptocurrency Ponzi scheme that defrauded at least 400 investors. The verdict, announced on August 24, 2026, followed a nine-day trial and found Kovar guilty on 15 counts, including wire fraud, mail fraud, and money laundering. He now faces a statutory maximum sentence of 280 years in prison, with sentencing scheduled for November 30, 2026.

The case centered on Profit Connect, a company Kovar owned from late 2017 through July 2021. Prosecutors presented evidence that Kovar marketed the firm as a profitable venture using artificial intelligence software on a supercomputer to mine cryptocurrency and verify transactions. He promised investors fixed annual returns of 15 to 30 percent, along with a 100 percent money-back guarantee. Kovar also falsely claimed that Profit Connect held hundreds of millions of dollars in cryptocurrency reserves and that investor funds were insured by the Federal Deposit Insurance Corporation.

According to the U.S. Attorney's Office for the District of Nevada, the company was not profitable, had no such reserves, and could not deliver the promised returns or...