Las Vegas Man Arrested for $24 Million Ponzi Scheme Fraud

Las Vegas Resident Accused of Defrauding Investors in $24 Million Scam

Las Vegas Man Accused of Running $24M Crypto Ponzi Scheme

A Las Vegas man has been found accused of running a cryptocurrency Ponzi scheme. Brent Kovar, a 58-year-old man facing federal charges after a grand jury indicted him. Prosecutors say he scammed over 400 investors and raised about $24 million through his company, Profit Connect.

Allegations Against Kovar

Kovar allegedly promised investors huge returns, of nearly 15-30%. He claimed Profit Connect used artificial intelligence and a supercomputer to mine cryptocurrency. He also said the company could verify cryptocurrency transactions. But authorities say it was all a lie.

According to his charge, Kovar convinced common people to invest their money. Instead of using the funds for cryptocurrency mining, he used the money for personal expenses. Prosecutors say he ran a classic Ponzi scheme. This means he used money from new investors to pay off earlier ones, creating the illusion of profits.

How the Scam Worked

Investigators say Kovar targeted common, everyday people. He promised them quick and easy returns on their investments. Many trusted him because of his claims about artificial intelligence.

Authorities say Kovar used flashy marketing tactics. He told investors their money was safe and guaranteed. He even claimed the company was backed by technology that could not fail. But none of it was true.

According to prosecutors, the scheme lasted for several years. During that time, Kovar and his company collected millions from investors. But in reality, the money was not being used as promised.

Legal Action and Charges

Now, Kovar faces serious legal trouble. He has been charged with wire fraud, mail fraud, and money laundering. These charges carry heavy penalties, including possible prison time.

Authorities are now working to recover lost funds. They are also urging victims to come forward. Many investors may have lost their savings, thinking they were making a smart financial move.

Las Vegas Crypto Ponzi Scheme: A Warning for Investors

Last year, an 86-year-old former California Lawyer, David Kagel, was involved in a multi-million-dollar cryptocurrency Ponzi scheme that defrauded investors. Now, a Las Vegas federal court judge, Gloria Navarro, has sentenced him to five years of probation and ordered him to pay nearly $14 million in restitution after he pleaded guilty to conspiracy to commit commodity fraud in May. This case serves as a stark reminder that Ponzi schemes are still a serious threat, and people—especially in Las Vegas—need to stay vigilant against cryptocurrency scams.

Final Thoughts

The case against Brent Kovar is ongoing. Prosecutors say they are committed to holding him accountable. Meanwhile, investors who lost money are hoping for justice.

Crypto scams are increasing day by day, a few months ago fake FBI agents drained bank accounts via Bitcoin ATM. Be aware of crypto and invest through safe mediums.

Cryptocurrency is a rapidly growing industry. While there are real opportunities, scams like this one show the risks involved. Authorities remind people to stay cautious and always verify before investing their money.