HotNews No 109: Profit Connect and the Indictment of Brent Kovar – Another Blow to Crypto Scams
A grand jury in the United States has issued an indictment against Brent Carson Kovar, the founder of the notorious platform Profit Connect, which has been under regulatory and investigative scrutiny for years. Kovar, a resident of Nevada, was arrested on February 13, 2025, one day after the indictment was filed. He faces 18 criminal charges, including wire fraud, mail fraud, and money laundering.
What is Profit Connect and How Did It Operate?
Profit Connect was a crypto MLM Ponzi scheme launched in 2020 with bold promises of guaranteed returns between 15% and 30% per year, along with a 100% money-back guarantee. Kovar and his partner Eddie Kona, who passed away in 2021, claimed the platform was generating profits through cryptocurrency mining and transaction validation. In reality, Profit Connect had no legitimate business model or sustainable revenue source.
Like every classic Ponzi scheme, payments to older investors were made from funds collected from new investors, while a significant portion of the money ended up in the organizers’ pockets. According to the indictment, Kovar raised approximately $24 million from at least 400 investors, which he used not for the promised investment activities, but to finance his lavish lifestyle, buy gifts for employees, and maintain the illusion of profitability.
Why Does This Matter for Investors?
This case is yet another reminder of the importance of critically evaluating promises of guaranteed returns and unrealistically high profits. Profit Connect is just one of many scams that, under the guise of sophisticated technology and so-called “safe crypto investments,” managed to deceive hundreds of investors worldwide. The Profit Connect case clearly demonstrates how a lack of transparency, unrealistic promises, and aggressive marketing often hide high-risk or entirely fictitious schemes.
Why is Prosecuting These Cases Important?
International investigations and prosecution of key figures behind these scams send a strong message to future fraudsters – no matter how complex their schemes, justice can and will catch up to them. At the same time, prosecuting Kovar and others like him helps protect future investors and strengthen trust in regulatory mechanisms, showing that authorities are prepared to actively monitor, investigate, and prosecute financial crimes in the digital space.
It is particularly significant that, in this case, U.S. authorities pursued both civil and criminal proceedings in parallel, since Kovar was already subject to a civil fraud complaint filed by the SEC in 2021, which ended in a settlement. Now, through criminal prosecution, authorities are sending a clear message that fraudsters cannot simply “buy their way out”, but instead face serious consequences.
What’s Next?
At his February 13 arraignment, Kovar pleaded not guilty to all charges. However, given the overwhelming evidence and his prior settlement with the SEC, legal experts predict that Kovar may eventually change his plea and accept a plea deal in exchange for a reduced sentence. If convicted, Kovar faces a maximum sentence of 330 years in prison and fines totaling $4.5 million.
The trial is scheduled to begin on April 8, 2025, and investors, regulatory bodies, and industry experts will be watching closely to see how the case unfolds.
Your DefendMe Team