Profit Connect Owner Found Guilty on 15 Counts in AI Crypto Fraud Case

A federal jury has convicted Brent C. Kovar, the owner of Profit Connect, on 15 counts tied to a fraudulent AI-powered crypto scheme. The charges include 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. Kovar allegedly took $24 million from at least 400 investors with promises of outsized returns from a supercomputer that didn't exist.

The pitch that fooled investors

Kovar marketed Profit Connect as running AI software on a supercomputer to mine crypto and verify transactions. He promised fixed returns of 15% to 30% APR and a 100% money-back guarantee. He also claimed the company held hundreds of millions of dollars in crypto reserves. None of it was true.

The fraudulent operation ran from late 2017 through July 2021, according to prosecutors. Investors were told their money was being put to work by the AI. Instead, the company had no legitimate source of returns and no reserves. Kovar used the funds to cover operating costs, buy gifts for employees, pay for a personal house, and make repayments to earlier investors — dressed up as mining proceeds.

The gap between SEC and DOJ figures

This isn't the first time Profit Connect drew regulator attention. The SEC filed a civil action back in 2021, accusing Joy and Brent Kovar of raising more than $12 million from at least 277 investors through Profit Connect Wealth Services. That complaint also pointed to the AI supercomputer pitch and promised annual returns of 20% to 30%.

The DOJ's numbers are roughly double the SEC's — $24 million versus $12 million, 400 investors versus 277. The two cases cover different periods, so the totals aren't directly comparable. But the discrepancy shows how the scope of the fraud has widened as investigators dug deeper.

What happens next

The conviction moves the case to sentencing on November 30. A federal judge will decide the punishment, using the US Sentencing Guidelines. The statutory maximum across all counts is 280 years in prison — a figure that shows just how seriously the courts are taking the scheme.

For the people who lost money, the verdict brings a measure of accountability, but restitution is a separate matter. The criminal case is done; the civil one has been in the works for years. Whether any money is ever recovered remains an open question.