Two separate federal juries returned guilty verdicts this week in crypto fraud cases. Brent C. Kovar of Las Vegas was convicted of defrauding at least 400 investors out of $24 million through Profit Connect, and Japheth Dillman of San Francisco was found guilty of wire fraud and conspiracy for a nearly $1 million scheme built around Block Bits Capital. Both men now face sentencing later this year.
The $24 million promise
Kovar's company, Profit Connect, operated from late 2017 through July 2021. The pitch: AI software running on a supercomputer to mine crypto and verify transactions. Investors were promised fixed annual returns of 15% to 30%, a 100% money-back guarantee, and hundreds of millions of dollars in crypto reserves backing the fund. Kovar also told investors their money was FDIC-insured.
None of that was true. Prosecutors said investor money paid for company operations, employee gifts, a personal house, and repayments to earlier investors — all while Kovar claimed the proceeds came from crypto mining. The jury convicted him on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering after a nine-day trial. The statutory maximum is 280 years, though actual sentencing will be set by the judge. That's scheduled for November 30, 2026.
The Autotrader that wasn't there
Dillman's scheme ran from June 2017 to August 2018, roughly a year. He told investors that Block Bits Capital had a complete, working "Autotrader" software that could handle automated crypto trading. He knew the algorithm wasn't functioning, and investor money went to personal payments and risky crypto trades that took heavy losses.
More than 20 investors lost nearly $1 million combined. After a 10-day trial, the jury convicted Dillman on wire fraud and conspiracy charges. He remains released on bond. Each count carries up to 20 years in prison and a $250,000 fine. Sentencing is set for December 8, 2026.
Two schemes, same shape
The cases aren't linked, but the pattern is familiar: a trading or mining tool that sounds too good to be true, promises of steady returns, and investor money quietly redirected. The difference is the scale — one scheme moved $24 million, the other barely a million.
Kovar's sentencing comes first, on November 30. Dillman's follows on December 8. Both judges will decide how much of the statutory maximum actually lands on them.
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