Las Vegas businessman convicted in $24 million crypto fraud scheme

Las Vegas businessman found guilty of $24 million crypto fraud

A federal jury in Nevada has convicted Las Vegas businessman Brent C. Kovar of running a $24 million cryptocurrency fraud scheme through his company, Profit Connect. Kovar was found guilty on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.

The U.S. Attorney’s Office for the District of Nevada announced the verdict on August 24, 2026. Kovar’s sentencing is scheduled for November 30, where he could face up to 280 years in prison.

How the scheme worked

Kovar operated Profit Connect from late 2017 to July 2021. He told investors the company used artificial intelligence (AI) software on a supercomputer to mine cryptocurrency—a process where computers solve complex problems to earn digital money—and verify transactions on blockchain networks.

Prosecutors said Kovar promised investors fixed annual returns of 15% to 30% and a 100% money-back guarantee. He also falsely claimed the company held hundreds of millions of dollars in cryptocurrency reserves and that investments were insured by the Federal Deposit Insurance Corporation (FDIC), a U.S. government agency that protects bank deposits.

However, the company was not profitable, had no reserves, and could not pay the promised returns or refund investors, according to the U.S. Attorney’s Office.

Key details of the case

• The fraud involved at least 400 investors.
• Kovar faces a maximum sentence of 280 years in prison.
• Profit Connect operated from late 2017 to July 2021.
• Investors were told the company used AI and supercomputers for crypto mining.
• Kovar falsely claimed investments were FDIC-insured.

What the FBI said

FBI Las Vegas Field Office Special Agent in Charge Christopher S. Delzotto stated: "The victims in this case thought they were engaged in revolutionary technological advancement, but it was merely a deception crafted by the falsehoods and trickery of Mr. Kovar."

What is confirmed

• Brent C. Kovar was convicted on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.
• The scheme involved $24 million from at least 400 investors.
• Profit Connect operated from late 2017 to July 2021.
• Kovar falsely promised fixed returns and FDIC insurance.
• Sentencing is scheduled for November 30, 2026.

What remains unclear

• The exact amount of money recovered or returned to investors is not mentioned in the sources.
• No details were provided about how investors were initially attracted to the scheme.

Why this case matters

This conviction highlights the risks of fraud in the cryptocurrency space, where promises of high returns and advanced technology can be used to deceive investors. The case also shows how regulators and law enforcement are cracking down on crypto-related crimes.

Investors should be cautious of schemes that guarantee fixed returns or claim government insurance, as these are common red flags in fraud cases.

Sources

• The Block
• U.S. Attorney’s Office for the District of Nevada