Las Vegas businessman faces 280 years in prison after $24 million crypto fraud conviction
Las Vegas businessman Brent C. Kovar was convicted by a federal jury for fraudulently obtaining $24 million from at least 400 investors through his cryptocurrency 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 said in a statement on Monday.
According to the statement, Kovar owned Profit Connect, a Las Vegas-based company that operated from late 2017 to July 2021. He told investors that the company used artificial intelligence software on a supercomputer to mine crypto and verify transactions.
Prosecutors said Kovar marketed the firm as a profitable venture, promising investors fixed annual returns of 15% to 30% and a 100% money-back guarantee. He also told investors that Profit Connect held hundreds of millions of dollars in cryptocurrency reserves and falsely claimed that their investments were insured by the Federal Deposit Insurance Corporation.
The company, however, was not profitable, had no reserves, and could not pay the promised returns or honor the money-back guarantee, the statement said.
"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," said FBI Las Vegas Field Office Special Agent in Charge Christopher S. Delzotto.
Kovar faces a statutory maximum of 280 years in prison and is scheduled to be sentenced on Nov. 30, with a federal judge to determine the actual sentence
Las Vegas businessman faces 280 years in prison after $24 million crypto fraud conviction Las Vegas businessman Brent C. Kovar was convicted by a federal jury for fraudulently obtaining $24 million from at least 400 investors through his cryptocurrency 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 said in a statement on Monday. According to the statement, Kovar owned Profit Connect, a Las Vegas-based company that operated from late 2017 to July 2021. He told investors that the company used artificial intelligence software on a supercomputer to mine crypto and verify transactions. Prosecutors said Kovar marketed the firm as a profitable venture, promising investors fixed annual returns of 15% to 30% and a 100% money-back guarantee. He also told investors that Profit Connect held hundreds of millions of dollars in cryptocurrency reserves and falsely claimed that their investments were insured by the Federal Deposit Insurance Corporation. The company, however, was not profitable, had no reserves, and could not pay the promised returns or honor the money-back guarantee, the statement said. "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," said FBI Las Vegas Field Office Special Agent in Charge Christopher S. Delzotto. Kovar faces a statutory maximum of 280 years in prison and is scheduled to be sentenced on Nov. 30, with a federal judge to determine the actual sentence. Ref: https://www.paykalken.com #Crypto #Bitcoin #CryptoFraud #CryptoScam #Fraud #MoneyLaundering #CryptoMining #AI #Investing #Blockchain
Las Vegas businessman faces 280 years in prison after $24 million crypto fraud conviction Las Vegas businessman Brent C. Kovar was convicted by a federal jury for fraudulently obtaining $24 million from at least 400 investors through his cryptocurrency 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 said in a statement on Monday. According to the statement, Kovar owned Profit Connect, a Las Vegas-based company that operated from late 2017 to July 2021. He told investors that the company used artificial intelligence software on a supercomputer to mine crypto and verify transactions. Prosecutors said Kovar marketed the firm as a profitable venture, promising investors fixed annual returns of 15% to 30% and a 100% money-back guarantee. He also told investors that Profit Connect held hundreds of millions of dollars in cryptocurrency reserves and falsely claimed that their investments were insured by the Federal Deposit Insurance Corporation. The company, however, was not profitable, had no reserves, and could not pay the promised returns or honor the money-back guarantee, the statement said. "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," said FBI Las Vegas Field Office Special Agent in Charge Christopher S. Delzotto. Kovar faces a statutory maximum of 280 years in prison and is scheduled to be sentenced on Nov. 30, with a federal judge to determine the actual sentence. Ref: https://www.paykalken.com #Crypto #Bitcoin #CryptoFraud #CryptoScam #Fraud #MoneyLaundering #CryptoMining #AI #Investing #Blockchain