Particle.news
Download on the App Store

Profit Connect Owner Convicted in $24 Million Crypto Ponzi Case

Sentencing is scheduled for Nov. 30, setting the stage for decisions on prison time and federal efforts to recover investor losses.

Overview

  • Federal jurors found Brent C. Kovar guilty on 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering after a nine-day trial that ended on Aug. 24, 2026.
  • Prosecutors say Kovar raised about $24 million from roughly 400 investors by promoting Profit Connect as an AI‑driven crypto‑mining operation that guaranteed 15%–30% returns and a 100% money‑back promise.
  • Evidence presented at trial showed Kovar used new investor funds to run the business, repay earlier investors, buy gifts for employees and purchase a personal home rather than generate legitimate mining revenue.
  • The case was investigated by IRS Criminal Investigation, the FBI and the FDIC Office of Inspector General and was prosecuted by Assistant U.S. Attorneys Joshua Brister and James Gaeta.
  • Kovar faces a statutory maximum of 280 years in prison and the conviction highlights ongoing federal efforts to treat fraudulent crypto investment schemes as conventional financial crimes and pursue restitution for victims.