The US Securities and Exchange Commission (SEC) has issued a temporary restraining order on a mother and son who embezzled more than $12 million from at least 277 investors.

Over the years, the 86-year-old mother and 54-year-old son have promised to generate income for their clients by investing in securities and cryptocurrencies, but instead have deceived investors and stole their money.

Supercomputer Trick:

announced The Securities and Exchange Commission (SEC) announced that it had stopped the scam organized by “Joey Kovar” (86 years old) and her son “Brent Kovar” (54 years).

The mother and son started their illegal operation in 2018 and have raised about $12 million from 277 investors since then.

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The family used their Las Vegas-based company, Profit Connect Wealth Services, to lure people into their fraudulent scheme.

They assured investors that they would allocate their deposited funds into trading securities and cryptocurrencies based on recommendations computed by a supercomputer using artificial intelligence.

Michelle Wayne Lane, director of the SEC’s Los Angeles regional office, commented:

The defendants targeted investors who were looking for safe products for their retirement and their children’s education, offering a money-back guarantee in addition to the phenomenal results they promised with an alleged supercomputer.

Investors should beware of individuals and companies that guarantee double-digit returns without the risk of loss.

The so-called company insisted that the “supercomputer” would guarantee at least 20-30% fixed returns per year with compound interest per month.

According to the US Securities and Exchange Commission, the Kovar family did not use the money coming from investors to trade securities or buy cryptocurrencies.

Instead, they transferred millions of dollars to Joy Kovar’s personal bank account, made huge payments to promoters, and made payments to old investors (a Ponzi scheme).

Additionally, more than 90% of Profit Connect’s money came from investors.

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According to the SEC statement, Joy Kovar has opened eight accounts in three different banks.

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In turn, Brent Kovar once received more than $350,000 from investors, which he used to buy a home for himself.

The July 26, 2021 hearing will determine the legal consequences of the mother-son duo.

The purpose of the story and the news is to remind that fraudulent operations exist in abundance and use a variety of methods, but they almost all share the methods of temptation and the promise of achieving high returns without loss, which makes it appear and clearly as a fraud.

So, if you are exposed to a platform or individuals who promise you to achieve high returns in a short period of time and without the possibility of losing, here you must be careful and run away.

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