Crypto Fraud Convictions: Las Vegas Man Faces Up to 280 Years

A federal jury convicted Las Vegas businessman Brent C. Kovar in a major crypto fraud case tied to his Profit Connect operation. Prosecutors said he raised about $24 million from at least 400 investors from late 2017 to July 2021 by promising fixed annual returns of 15%–30% and a 100% money-back guarantee. Kovar marketed an “AI + supercomputer” setup for crypto mining and transaction verification and claimed investors’ money was backed by hundreds of millions in crypto reserves. The government said these claims were false: Profit Connect was not profitable and had no real reserves, so the promised returns could not be paid. Instead, investor funds were allegedly used to run the business, cover payroll and personal expenses (including a house), and repay earlier investors while presenting the activity as mining/verification proceeds. The jury found Kovar guilty on 11 counts of wire fraud, 2 counts of mail fraud, and 2 counts of money laundering. Sentencing is scheduled for Nov. 30, 2026, with a statutory maximum of 280 years in prison. Separately, a federal jury also convicted Japheth Dillman for wire fraud and conspiracy involving Block Bits Capital. He allegedly misled 20+ investors about automated trading profits using a tool called “Autotrader,” while knowing the algorithm wasn’t working. For crypto traders, this crypto fraud verdict reinforces enforcement risk against “high-tech/mining” themed schemes and can briefly raise caution around returns marketing and yield-like products.