Woofun AI reports that a federal jury in Las Vegas has convicted Brent Kovar, owner of Profit Connect, for orchestrating a massive cryptocurrency Ponzi scheme. The verdict concludes a legal battle over the fraudulent enterprise that operated under the guise of legitimate technological innovation.

The scheme, active from late 2017 to July 2021, lured 400 investors with promises of 15% to 30% annual returns and a 100% money-back guarantee. Kovar claimed Profit Connect utilized artificial intelligence software on a supercomputer to mine crypto and verify transactions, asserting the firm held hundreds of millions of dollars in reserves. Per Woofun AI, these claims were entirely fabricated, as the company possessed no legitimate means to generate the promised yields or maintain such reserves.

The US Justice Department announced on Monday that Kovar was found guilty after a nine-day trial on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. Prosecutors detailed how investor funds were diverted to buy gifts for employees, purchase a house for Kovar, and repay earlier investors, with these payments falsely presented as proceeds from crypto activities. The operation was structurally unsound, relying on new capital to sustain the illusion of profitability.

Kovar is scheduled to be sentenced on Nov. 30, facing a combined statutory maximum of 280 years in prison. While this figure represents the upper limit of the law, a federal judge will ultimately determine the final term. This case underscores the severe legal consequences for exploiting AI narratives to mask traditional financial fraud.