Updated
The Profit Connect fraud conviction followed a federal jury finding that owner Brent C. Kovar fraudulently obtained $24 million from at least 400 investors. Prosecutors said the company promoted fixed returns, a money-back guarantee, cryptocurrency reserves and false FDIC-insurance claims. Sentencing is scheduled for November 30, 2026; no new refund or claims program was announced.
Key Facts
- A federal jury convicted Kovar on August 24, 2026, after a nine-day trial.
- The verdict covered 11 wire-fraud counts, two mail-fraud counts and two money-laundering counts.
- DOJ said the scheme obtained $24 million from at least 400 investors.
- Kovar is scheduled to be sentenced on November 30, 2026; the judge has not imposed a sentence.
- The conviction does not itself guarantee restitution, reopen a receivership claim or create FDIC coverage.
What Happened
The U.S. Attorney’s Office for the District of Nevada announced the verdict on August 24. DOJ said Kovar operated Las Vegas-based Profit Connect from late 2017 through July 2021.
Profit Connect was presented as a profitable technology company using artificial intelligence and a supercomputer to mine cryptocurrency and verify transactions. Investors were promised fixed returns of 15% to 30% APR and a 100% money-back guarantee.
DOJ said Kovar also claimed the company held hundreds of millions of dollars in cryptocurrency reserves and that the investment was FDIC-insured. Trial evidence established that the company was not profitable, had no such reserves and lacked a legitimate way to deliver the promised returns or guarantee.
According to DOJ, investor money instead funded company operations, employee gifts, a house for Kovar and payments to earlier investors that appeared to come from cryptocurrency activity.
What the Profit Connect Fraud Conviction Established
The August 24 result is a criminal jury verdict, not merely a new allegation. Kovar was convicted of 15 felony counts: 11 wire fraud, two mail fraud and two money laundering.
His sentencing date is November 30. DOJ said the statutory maximum totals 280 years, but that number is a legal ceiling rather than a prediction. The federal judge will determine the sentence after reviewing the U.S. Sentencing Guidelines and other statutory factors.
Still, the Profit Connect fraud conviction does not settle every financial question for victims. Restitution, if ordered, and any recovery process will be handled separately. Actual recovery would depend on available assets and later court orders.
Why the FDIC Claim Matters
The Profit Connect fraud conviction highlights why the word “FDIC” must be checked against the actual product. FDIC insurance protects eligible deposit accounts at an FDIC-insured bank. The standard limit is $250,000 per depositor, per insured bank, for each account ownership category.
It does not insure cryptocurrency, stocks, bonds, mutual funds or the performance of a nonbank investment. The FDIC’s list of financial products that are not insured expressly includes crypto assets and securities investments.
A promoter’s use of a bank account does not convert the underlying investment into an insured deposit. Bank logos, references to “banking partners” or statements that money passes through an insured bank are not enough.
Before relying on an FDIC claim, identify the actual bank, the legal owner of the account and the product being purchased. Then confirm the institution through the FDIC BankFind Suite. BankFind verifies institutions; it does not validate an outside investment offer.
The Earlier SEC Case and Receivership
The criminal prosecution was not the first government action involving Profit Connect. The SEC filed a civil enforcement case in July 2021 and obtained an asset freeze after alleging that more than 90% of the company’s money came from investors.
The SEC’s Profit Connect litigation release said the offering targeted retirement funds, home equity and family education savings. A court-appointed receiver later took control of the company and related entities.
The receivership’s current claims page says the September 11, 2023 claims bar date has passed. It directs anyone who believes they may still be entitled to make a claim to contact the receiver’s team. That civil process is separate from any restitution considered in the criminal case.
What Investors and Other Consumers Should Do
- Preserve evidence. Keep contracts, account statements, checks, wire details, emails, texts, videos and promotional materials. Do not send originals.
- Report new information. DOJ specifically directed people with related fraud information to the FBI Internet Crime Complaint Center. Save the complaint confirmation.
- Check the receivership separately. Existing Profit Connect investors should use the court-appointed receiver’s published contact details, not an unsolicited recovery service.
- Reject advance-fee recovery offers. A person claiming they can unlock restitution or retrieve crypto for an upfront payment may be attempting another fraud.
- Test future investment claims. Treat guaranteed high returns, fixed profits regardless of market conditions and vague AI or crypto explanations as warning signs. The SEC’s investment-fraud checklist provides additional screening steps.
Bottom Line
The Profit Connect fraud conviction establishes criminal liability for a $24 million scheme that reached at least 400 investors. It also illustrates a key protection rule: FDIC insurance covers qualifying bank deposits, not an investment merely because a promoter mentions an insured bank. Sentencing and any criminal restitution remain pending.
Editorial disclaimer: This article provides general consumer information and is not legal, investment or financial advice. Restitution, receivership claims and individual recovery depend on court orders, available assets and each person’s circumstances.
This report provides general news and educational information for a U.S. audience. It is not individualized financial, credit, legal, tax, insurance or investment advice. Verify current procedures through the linked official sources.
