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The SEC busted a mother-son crypto Ponzi scheme that lured investors with an AI 'supercomputer' that promised 30% returns

The SEC busted a mother-son crypto Ponzi scheme that lured investors with an AI 'supercomputer' that promised 30% returns


Andrew Kelly/Reuters




The SEC shuttered operations of a mother-son duo that defrauded investors through a Ponzi-like crypto scheme.




The pair promised up to 30% returns based on trading recommendations made by an AI "supercomputer."




Instead, they misused investor money by making Ponzi-like payments.




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The Securities and Exchange Commission announced it shut down the operations of a mother-son duo that defrauded investors through a cryptocurrency Ponzi scheme that promised up to 30% returns based on the trading recommendations of an artificial intelligence "supercomputer."Since May 2018, Joy Kovar, 86, and her son Brent Kovar, 54, raised more than $12 million from at least 277 retail investors through their Las Vegas-based firm, Profit Connect Wealth Services.The SEC has filed an emergency action and obtained a temporary restraining order and asset freeze to halt the ongoing fraud. The duo, according to the agency, convinced investors their money would be invested in securities and cryptocurrencies based on recommendations made by an alleged AI supercomputer. This machine, the duo said, consistently generates enormous returns of up to 30% per year with monthly compounding interest.
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