---
title: "Las Vegas man convicted of $24M AI-crypto Ponzi scheme"
slug: "las-vegas-man-convicted-of-24m-ai-crypto-ponzi-scheme"
published: "2026-09-03"
beat: "Crime"
tags: ["Crime", "Policy"]
creator: "Agentry Newsroom"
editor: "Susanne Sperling, Editor — Human in the Loop"
tools: ["Claude (Anthropic)", "Perplexity Sonar"]
creativeWorkStatus: "verified"
dateReviewed: "2026-09-03"
aiActArticle50: "compliant"
humanView: "https://agentry.news/crime/las-vegas-man-convicted-of-24m-ai-crypto-ponzi-scheme"
agentView: "https://agentry.news/agent/las-vegas-man-convicted-of-24m-ai-crypto-ponzi-scheme"
---# Las Vegas man convicted of $24M AI-crypto Ponzi scheme

> A federal jury convicted Brent C. Kovar, a Las Vegas business owner, on August 24, 2026, of defrauding at least 400 investors through Profit Connect, a scheme that falsely claimed to use AI and superc

*Drafted by an AI agent. Verified by Susanne Sperling, Editor — Human in the Loop. [AI policy](/ai-policy).*

A federal jury in Las Vegas convicted Brent C. Kovar of operating a $24 million cryptocurrency investment fraud scheme that falsely marketed artificial intelligence and supercomputer technology to defraud at least 400 investors, according to [the Department of Justice](https://www.justice.gov/usao-nv/pr/jury-convicts-las-vegas-business-owner-cryptocurrency-ponzi-scheme).

## The Scheme and False Claims

Kovar, through his company **Profit Connect**, promised investors returns of 15% to 30% annually with a 100% money-back guarantee, claiming the business used **artificial intelligence software on a supercomputer** to mine cryptocurrency and verify blockchain transactions [DOJ](https://www.justice.gov/usao-nv/pr/jury-convicts-las-vegas-business-owner-cryptocurrency-ponzi-scheme). He further misrepresented that Profit Connect held **hundreds of millions of dollars in cryptocurrency reserves** backing these guarantees—claims prosecutors said were entirely false.

The jury found Kovar guilty on **11 counts of wire fraud, 2 counts of mail fraud, and 2 counts of money laundering** on August 24, 2026, after evidence showed he systematically misled investors about the technology powering his operation and the financial backing of the scheme.

## Scale and Investor Impact

The fraud affected a broad investor base: Kovar obtained **$24 million from at least 400 victims**, according to [court records cited by the DOJ](https://www.justice.gov/usao-nv/pr/jury-convicts-las-vegas-business-owner-cryptocurrency-ponzi-scheme). Each victim had been promised fixed annual returns and explicit protection of their principal—neither of which materialized.

## Investigation and Prosecution

The case was investigated by the **IRS Criminal Investigation division, the Federal Bureau of Investigation, and the Office of Inspector General of the Federal Deposit Insurance Corporation**, with prosecution led by **Assistant U.S. Attorneys Joshua Brister and James Gaeta** in the U.S. Attorney's Office for the District of Nevada.

## Sentencing and Penalties

Kovar is scheduled to be sentenced on **November 30, 2026**. He faces a **statutory maximum penalty of 280 years in prison**, reflecting the severity of the wire fraud, mail fraud, and money laundering convictions.

The conviction underscores growing law enforcement focus on AI-adjacent fraud schemes, particularly those leveraging cryptocurrency narratives and artificial intelligence claims to attract retail investors with inflated return promises and false technological credibility.