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Vegas duo, mother and son accused of running Ponzi scheme, which earned them $ 12 million

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The duo mother and son embezzled more than $ 12 million from at least 277 investors. Over the years, the 86-year-old woman and her 54-year-old son promised to generate income for their clients by investing in securities and cryptocurrencies, but instead found the funds for themselves.

Mother and son lure investors to “supercomputer”

The Securities and Exchange Commission (SEC) announced that it has stopped the Ponzi scheme operated by Joy Kovar (86) and her son Brent Kovar (54). The team launched illegally in 2018 and has since raised approximately $ 12 million from 277 investors.

Profit Connect shut down by SEC, $ 12 million Ponzi scheme
Brent Kovar

The family used their Las Vegas-based company, Profit Connect Wealth Services, to lure people into the typical Ponzi scheme. They assured investors that they would allocate their money to trading in securities and digital assets based on recommendations calculated by a “artificial intelligence supercomputer.” Michele Wein Layne, director of the SEC’s regional office in Los Angeles, said:

“The defendants targeted investors looking for safe products for their retirement and their children’s education, and in addition to the phenomenal results they promised to achieve with the alleged” supercomputer, “they offered a money back guarantee. Investors should be wary of individuals and companies that guarantee double-digit returns without the risk of loss. ”

The company stated that the “supercomputer” guarantees at least 20-30% fixed income per year with monthly interest. However, according to the SEC, the Kovar family did not use funds from investors to trade securities or buy cryptocurrencies.

Instead, they transferred “millions of dollars to Joy Kovar’s personal bank accounts,” paid promoters, and made payments to other investors.

Following charges, Joy Kovar opened eight accounts in three different banks. Brent Kovar once received more than $ 350,000 from investors, which he used to buy a residential house for himself. The hearing on July 26, 2021 will determine the legal consequences of the duo’s wrongdoing.

15 years in prison for stealing $ 16 million from BTC

There was a lot of talk earlier this month about the case of Roger Nils-Jonas Karlsson. A Swedish resident has confessed to luring at least 3,575 people into a fraudulent BTC investment program. He embezzled more than $ 16 million and will spend the next 15 years in federal prison, according to the investigation.

Roger Karlsson, a Swedish crypto scammer and founder of fintech startup Eastern Metal Securities, sentenced to 15 years in prison after pleading guilty to fraud |  Tech News |  Startups News
Roger Nils-Jonas Karlsson

Between 2012 and 2019, this 47-year-old man fooled thousands of people into a “Ponzi scheme.” During this period, the criminal lured more than 3,500 people to send him funds in BTC and other digital assets that he later used for personal enrichment – a resort in Thailand, luxury apartments and even a racehorse.

After a successful investigation, the Ministry of Justice (DOJ) stopped his criminal operations. In addition to 180 months behind bars, his Thai resort was confiscated, along with other properties he had bought over the years.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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