AI-Powered Crypto Mining? More Like a $24M Scam

Between 2017 and 2021, Brent S. Kovar orchestrated an extensive fraud scheme, persuading over 400 investors to entrust him with their funds under the false pretense of guaranteed 30% annual returns and full capital protection. Instead of fulfilling his promises, he diverted the money for personal indulgences, luxury acquisitions, and deceptive payouts to sustain the illusion. The Nevada Prosecutor’s Office and the FDIC have officially announced charges against him.

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. FDIC OIG is committed to identifying, and holding accountable, those who endanger our Nation’s financial system by victimizing others for their personal gain,

commented Ryan Korner, Special Agent in Charge with the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).

In an elaborate bid to attract investors, Kovar created an entire ecosystem of deception. He launched a professional website, flooded YouTube with promotional content, and hosted persuasive presentations, all designed to lure affluent individuals into investing in his company, Profit Connect.

To make his operation seem credible, he rented multiple office spaces, falsely presenting them as fully equipped data centers. He also accepted a range of payment methods, from traditional banking and checks to cryptocurrency transactions.

Now facing 18 felony charges—12 for wire fraud, three for mail fraud, and three for money laundering—Kovar could receive up to 330 years in prison and a fine of $4.5 million if convicted. His jury trial is set for April 8, 2025.

Read on: HashFlare Founders Admit to $575M Crypto Fraud Scheme