On August 15, 2025, the Profit Connect Receiver filed a clawback lawsuit in the District of Nevada against 20 net-winner promoters, seeking to recover $2.4 million in misappropriated funds from the $12 million MLM Ponzi scheme run by Brent Kovar, per. The suit claims fraudulent transfers, unjust enrichment, and legal costs, alleging transfers came from new investors’ principal, existing principal, and additional investments, per. The SEC charged Kovar in July 2021, settled in December 2021, and indicted him criminally in February 2025, with the case ongoing.
David Bruerd, Bethany Voydat, and John Guetterman filed Motions to Dismiss on September 16, 18, and 25, 2025, respectively. William Divine settled, leading to a Stipulation to Dismiss on October 23, 2025, per. On October 31, 2025, the Receiver moved for default judgment against non-responding defendants.
The Receiver has recovered $9.1 million as of February 2022, enabling an $8 million interim distribution in December 2024, per. Prior settlements include:
This clawback continues efforts to equitably distribute to victims.
Profit Connect’s collapse highlights MLM Ponzi risks in crypto, with $12M lost to false AI trading promises, per. SEC and DOJ actions underscore enforcement, per. Investors should verify via sec.gov and avoid high-yield MLM schemes. BTC ($113,234) and ETH ($4,070) remain stable, per CoinMarketCap, but clawbacks could deter retail participation. Diversify into USDC with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for updates. This suit may recover $2.4M+, aiding victims by 2026.
