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Las Vegas businessman Brent Kovar was convicted on 15 federal fraud and money-laundering counts on Aug. 24, 2026, after prosecutors said he used a fake AI-powered cryptocurrency mining operation to defraud at least 400 investors out of $24 million, facing a statutory maximum of 280 years in prison.
Prosecutors said Profit Connect promised annual returns ranging from 15% to 30%, alongside a 100% money-back guarantee, while allegedly claiming to hold hundreds of millions of dollars worth of cryptocurrency reserves. Authorities said those representations were false.
The conviction followed charges brought against Kovar over his operation of Profit Connect, a Las Vegas-based company that prosecutors said operated from late 2017 until July 2021.
According to the U.S. Department of Justice, the business was presented to investors as a technology-driven operation that used artificial intelligence software and a supercomputer to mine cryptocurrency and verify transactions.
The Las Vegas businessman was convicted on 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering.
The jury’s verdict reduced the maximum statutory exposure from the 330 years associated with the original indictment to 280 years based on the counts for which Kovar was ultimately convicted.
Importantly, the 280-year figure is a statutory maximum, not an indication that Kovar will receive that sentence. The eventual punishment will be determined by a federal district court judge after considering the U.S. Sentencing Guidelines and other applicable factors.
First Assistant U.S. Attorney Sigal Chattah said the verdict demonstrated the government’s determination to pursue financial fraud.
“Financial fraud undermines the foundational trust of our economic system,” — Sigal Chattah, First Assistant U.S. Attorney for the District of Nevada.
According to prosecutors, the Las Vegas businessman marketed Profit Connect as a profitable cryptocurrency enterprise capable of producing consistent returns for investors.
Customers were allegedly told they could receive fixed annual returns between 15% and 30%, while also being promised that their original investment could be fully returned.
The company also allegedly claimed to possess cryptocurrency reserves worth hundreds of millions of dollars. Prosecutors said Kovar knew the business did not have those reserves and could not generate the returns advertised to customers.
The marketing campaign reportedly included a company website, YouTube material and a PowerPoint presentation.
Profit Connect also leased office space and a warehouse that was represented as a data center, according to the Justice Department. Investments were sold through an entity known as Profit Connect Wealth Services.
For investors evaluating cryptocurrency opportunities, the case illustrates why claims of predictable, unusually high returns warrant careful scrutiny.
A guaranteed return is fundamentally different from the price appreciation or yield uncertainty associated with most legitimate crypto investments. IRS Criminal Investigation officials also said the operation relied on misleading representations.
The government’s case centered on how Profit Connect allegedly handled money received from customers. Prosecutors said the business did not have a legitimate revenue source capable of supporting the returns or money-back guarantees that had been promoted to investors.
Instead, authorities said incoming investor funds were used for a combination of business operations, personal spending and payments to earlier investors.
Prosecutors specifically alleged that Kovar used investor money to purchase employee gifts and a house for himself.
Some funds were also allegedly returned to investors while being presented as proceeds generated through cryptocurrency mining and transaction verification.
The Las Vegas businessman therefore faced allegations that the operation’s apparent ability to make payments did not come from the cryptocurrency activity described to customers.
According to federal prosecutors, payments to earlier participants helped sustain the appearance that Profit Connect was generating legitimate investment returns.
Authorities said the scheme ultimately involved approximately $24 million obtained from at least 400 investors.
The case also involved allegations that Kovar falsely suggested some investments were protected by the Federal Deposit Insurance Corporation.
Ryan Korner, Special Agent in Charge at the FDIC Office of Inspector General, said investors were allegedly drawn in by those claims.
The Las Vegas businessman case is significant beyond the amount allegedly lost because it demonstrates how traditional financial fraud can be packaged around emerging technology.
The government’s allegations did not depend simply on cryptocurrency prices falling or an investment failing. Instead, prosecutors argued that investors were deliberately misled about the nature of the business, its financial position and the source of promised returns.
The case also underscores the importance of independently verifying claims made by crypto investment businesses.
Investors considering platforms that advertise fixed returns, guaranteed principal protection, large undisclosed reserves or supposedly proprietary mining technology should examine whether those claims can be independently substantiated.
The Las Vegas businessman conviction also comes as U.S. authorities continue to pursue cases involving alleged financial crimes connected to digital assets.
The Justice Department has separately brought cases involving alleged cryptocurrency investment schemes, demonstrating that digital assets do not place conventional fraud outside the reach of existing criminal laws.
Kovar’s sentencing hearing is currently scheduled for Nov. 30, 2026. Until the court determines the sentence, the 280-year figure should be understood solely as the statutory maximum associated with his convictions rather than a prediction of the punishment he will receive.
The Las Vegas businessman prosecution shows that sophisticated descriptions involving artificial intelligence, cryptocurrency mining or large digital-asset reserves cannot substitute for independently verifiable financial evidence.
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