Las Vegas man convicted of $24M AI-crypto Ponzi scheme

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.

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. 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. 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.