Jason M. Frierson U.S. Attorney | U.S. Attorney for the District of Nevada
A Las Vegas business owner appeared in court, accused of falsely presenting his company as a successful artificial intelligence firm involved in cryptocurrency mining and transaction verification. The defendant, Brent C. Kovar, allegedly acquired around $24 million from over 400 investors through these misrepresentations.
"Mr. Kovar allegedly stole victims’ hard-earned money by making false representations regarding his investment company, including misleading some victims to believe their investments were backed by the FDIC," stated Ryan Korner, Special Agent in Charge with the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). "FDIC OIG is committed to identifying, and holding accountable, those who endanger our Nation’s financial system by victimizing others for their personal gain."
Kovar faces charges that include 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. His trial is set for April 8, 2025, before United States District Judge Jennifer A. Dorsey.
The indictment claims that between late 2017 and July 2021, Kovar owned Profit Connect Wealth Services in Las Vegas. He allegedly told investors that the company used artificial intelligence on a supercomputer for cryptocurrency operations and offered returns of 15%-30% APR with a full money-back guarantee. Contrary to these claims, it is alleged he used investor funds for personal expenses such as buying gifts for employees and purchasing a house.
To attract customers, Kovar reportedly created promotional materials including a website and videos where he made these false claims. He also leased office space purportedly for sales operations and data centers.
If found guilty, Kovar could face up to 330 years in prison along with fines totaling $4.5 million. Sentencing will be determined by a federal district court judge based on U.S. Sentencing Guidelines among other factors.
The case was announced by Acting United States Attorney Sue Fahami alongside officials from the FBI Las Vegas Division, FDIC OIG, and IRS Criminal Investigation Phoenix Field Office.
The investigation was conducted by the FBI, FDIC OIG, and IRS-CI with Assistant United States Attorney Daniel Schiess prosecuting the case.
It should be noted that an indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond reasonable doubt in court.
