In general, the defendant made false claims that Profit Connect was a successful, established business that gave investors a set rate of return of 15%–30% APR, mined cryptocurrencies, validated cryptocurrency transactions, and offered a 100% money-back guarantee.

• As the defendant was aware at the time, Profit Connect actually
  
  

• was not a thriving, successful business,
  
  
• failed to provide investors with stable rates of return, and
  
  

lacked the legal resources to support its 100% money-back promise

Furthermore, rather than using investor funds as agreed upon, the defendant used them to, among other things, run Profit Connect, purchase presents for staff members, purchase a home for himself, and reimburse investors under the pretense that the repayments were made through cryptocurrency mining and transaction verification.

At least 400 investors gave the defendant a total of almost $24 million..

Kovar entered a not guilty plea to all eighteen accusations at his arraignment on February 13. At his arraignment, Kovar was freed on a personal recognizance bond.

I believe it’s quite clear that Kovar will eventually enter a guilty plea because he has previously resolved civil Profit Connect fraud accusations with the SEC.

Kovar, 58, faces a maximum sentence of 330 years in jail and a fine of $4.5 million if he does not enter a guilty plea and goes to trial.

The trial for Kovar’s Profit Connect has been set for April 8, 2025.