- SEC shutters the Mother-Son duo for Crypto scam.
- Promised to generate most of the earnings from Bitcoin mining.
- Brent Kovar received nearly $353,000 of investors’ funds.
Securities and Exchange Commission (SEC) has shuttered a scam that promised to generate most of the earnings from Bitcoin (BTC) mining and invest in cryptocurrencies and other belongings, the regulators announced on Monday.
Accordingly, 86-year-old Mother Joy Kovar and her son 54-year-old son Brent Kovar has raised more than $12 million from nearly 277 investors via Las Vegas-based platform, Profit Connect Wealth Services since 2018.
Moreover, the duo mother-son makes to believe the investors by saying that Profit Connect invested in forex, stocks, and other assets. To diversify its income stream from the company’s main income source of blockchain mining. Also, the duo touted the ability of a supercomputer and artificial intelligence (AI) to generate 20-30% fixed returns per year with monthly compounding interest.
Furthermore, the regulators founded that over 90% of the platform’s funds came from investors. And the duo doesn’t utilize the fund received to trade securities, buy cryptocurrencies. They didn’t do any of the things they made promised to their investors. They just cheated the investors.
Even more, they misused the fund by transferring millions of dollars to Joy Kovar’s bank account. To pay for the promoters and to make Ponzi-like payments.
Henceforth, 54-year-old son Brent Kovar used social platforms to market for raising funds. In a YouTube video, Brent Kovar presents what he says is a mining card to show the audience “what they look like”. And says his company uses artificial intelligence to only decode [those mining cards] of the blockchain that have transactions.
Additionally, Brent Kovar received nearly $353,000 of investors’ funds. He used the investor fund to purchase a residential home. It also declares that his mother Joy Kovar opened eight personal accounts at three different banks.
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