Profit Connect owner Brent C. Kovar convicted of $24M fraud

Brent C. Kovar, owner of Profit Connect, was convicted by a federal jury on 15 counts of fraud and money laundering, having defrauded at least 400 investors out of 24 million dollars through false claims about an AI-powered crypto business. The verdict followed a nine-day trial, where Kovar was found guilty of 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. The Justice Department stated that Kovar marketed Profit Connect from late 2017 to July 2021 as a profitable technology business that could generate promised returns. He claimed the company utilized AI software on a supercomputer to mine crypto and verify transactions, offering fixed returns of 15% to 30% APR and a 100% money-back guarantee. However, prosecutors revealed that Profit Connect was unprofitable, held no reserves, and lacked a legitimate source for the promised returns. Instead, Kovar misused investor funds to operate the business, buy gifts for employees, purchase a house, and repay investors, falsely presenting these repayments as proceeds from mining and transaction verification. Sentencing is scheduled for Nov. 30, with the convictions carrying a maximum of 280 years in prison.