Business & Investment

The SEC accuses a team of mothers and sons who touted fake stock-choice supercomputers (named Orwell and Tesla) on suspicion of investment fraud

The Securities and Exchange Commission wants to close the Ponzi scheme run by a team of mothers and sons who allegedly left for more than $ 12 million after selling investors on the belief that they developed a solid stock. Moved to-choose a supercomputer.

Joycovar (86) and son Brentcovar (54) in Las Vegas have their Profit Connect Wealth Services Inc to seduce hundreds of investors to use retirement funds to buy shares. Has been accused of promoting the technology of. From their home. In a civil lawsuit opened on Friday, the SEC said it promised to guarantee up to 30% annual earnings and monthly compound interest in return.

Last week, a federal judge in Nevada issued a temporary order prohibiting the company from pursuing more investors and freezing its assets. Kovar’s lawyer was not listed in the court records and he could not ask for comment.

In 2010, Brent Kovar permanently banned the SEC from serving on the board of the company or selling securities for his role in a pump-and-dump scheme in Florida, including a fake counter-terrorism business. it was done. His mother also played a role in the company, but she was not charged.

In a more recent case, the SEC said it began advertising itself in 2018, saying that Kovar could invest in cryptocurrencies and more traditional securities based on the recommendations of “artificial intelligence supercomputers.” Profit Connect said on its website that it operates two supercomputers called Orwell and Tesla.

Kovars said that as part of the pitch, investors will be given time or seats to make investment decisions on their computers, guaranteeing high rates of return and the right to withdraw funds without fees. No penalty at any time. Authorities accused it specifically of those who were trying to raise college funding for their children.

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“Investors need to be aware of individuals and businesses that guarantee double-digit returns without the risk of loss.”


— Michele Wayne Rain, Director of the SEC’s Los Angeles Regional Office.

Kovars is said to have used promoters on social media to raise more than $ 12 million from at least 277 investors.

“I really hope that all my friends and family I love and cherish will be open enough to take advantage of this amazing platform !!!!”, the SEC told an unnamed court. It states that it has been submitted. Profit Connect promoter to post on Facebook. “You are just hurting yourself by ignoring it.”

However, investigators said Kovar had never engaged in any kind of investment activity and instead used the money to finance their lifestyle, buy homes and cars, and pay high credit cards. I am. According to investigators, Joy Kovar sent about $ 1.2 million to his personal account and spent another $ 1.7 million on his items.

They also reportedly paid a fee of about $ 3 million to promoters who brought investors. According to investigators, some money was also used to repay investors who withdrew from the system in a pongee-style manner. Investigators claim that more than 90% of the money held in Profit Connect’s bank accounts came directly from investors, not the result of the investment.

Neither Profit Connect nor Kovars were registered with the SEC for securities trading.

“In addition to the extraordinary results the defendant has promised to target investors looking for safe products for retirement and children’s education and to achieve using what is called a” supercomputer. ” , Provided a money-back guarantee, “said the SEC’s Los Angeles Regional Office. “Investors need to be aware of individuals and businesses that guarantee double-digit returns without the risk of loss.”

Brentcovar and one of his brothers are associated with Skyway Global LLC, an internet services company charged with fraudulently raising millions of dollars from investors on promises to build a nationwide network. I had previously faced a civil lawsuit from the SEC in 2009. Broadcast towers and counter-terrorism technology that allow the government to monitor and control planes as needed.

Joy Kovar, who was Sky Way’s corporate secretary, was not charged in the proceedings.

The SEC accuses a team of mothers and sons who touted fake stock-choice supercomputers (named Orwell and Tesla) on suspicion of investment fraud

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-753A-148E8F497F88%7D&siteid=rss&rss=1 The SEC accuses a team of mothers and sons who touted fake stock-choice supercomputers (named Orwell and Tesla) on suspicion of investment fraud

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