Revenue Join’s Brent Covar is working one other lately launched Ponzi whereas out on pre-trial launch.
Revenue Join was a $12 million MLM crypto Ponzi launched in 2020. Revenue Join’s ruse was crypto mining, with fabricated advertising and marketing claims a few advertising and marketing partnership with Tesla.
The SEC filed swimsuit towards Kovar (58, proper) in 2021. Kovar’s mom, Pleasure Irene Kovar (then 86), was additionally named as a defendant.
Defendants misused investor cash by, amongst different issues, transferring tens of millions of {dollars} to J. Kovar’s private checking account, paying tens of millions of {dollars} to promoters who introduced buyers to the Revenue Join web site to take a position, and making funds to different buyers in a Ponzi-like style.
A court-appointed Receiver moreover discovered Kovar used Revenue Join investor funds to lavish items on three girls.
The Non permanent Receiver recognized three Revenue Join workers with the obligations of administering the monetary and personnel operations of Revenue Join: SW, a former pharmacy technician employed because the accounting supervisor and, as she has acknowledged, a long-term girlfriend of Brent Kovar, RU, a former pharmacy technician employed as an accountant, and JM, with no prior job expertise who was employed because the junior accountant and receptionist on the warehouse.
Along with being comparatively overcompensated by way of payroll for his or her obligations as described under, these three girls additionally obtained different substantial property paid for by Revenue Join, together with: a fully-paid-for dwelling totaling $387,786.94, a Dodge Ram 1500 truck costing $49,320.35, a 2021 Mannequin Y Tesla lease costing $18,513.16, cosmetic surgery costing $21,461.24, and earnings from the Wealth Providers applications of not less than $114,100.
Kovar and his aged mom settled with the SEC in December 2021.
That each one brings us to Revenue Join legal proceedings. In February 2025, Brent Kovar was indicted on eighteen Revenue Join associated legal expenses.
Kovar was ordered launched pending trial, at the moment scheduled for January sixth, 2026.
On April eleventh, the DOJ filed a movement in search of Kovar’s pre-trial launch be revoked. As alleged by the DOJ, earlier this 12 months Kovar launched one other MLM crypto Ponzi scheme.
This scheme mirrors the scheme alleged within the pending indictment—it claims to be a Bitcoin mining firm that supposedly mines over $1.8 million a day in Bitcoins, pays buyers terribly excessive charges of return, and gives a 100% money-back assure, none of which is true.
The scheme in query is “Passive Revenue On a regular basis”. whose web site has since been disabled:
In launching and working Passive Revenue On a regular basis, Kovar hid behind Heidi Shields (proper).
Shields, cited as “Kovar’s buddy”, is “a pharmacy technician at a Smith’s Pharmacy within the Las Vegas space.”
That’s 4 pharmacy technicians tied to Kovar. I might be flawed however, and this may tie into his mom’s remedy necessities, feels like Brent Kovar is utilizing Smith’s Pharmacy as a Tinder app.
An exhibited report on an FBI interview with Shields (proper) particulars a comedy of denials and errors.
SHIELDS is the only proprietor, President, and CEO of PASSIVE INCOME EVERYDAY (PIE).
She initially described PIE as an organization SHIELDS began that sells laptop mining time amongst different issues. Later, she stated she wasn’t introduced onto the corporate till it was within the later levels of testing.
Close to the top of the interview, SHIELDS stated her and BRENT KOVAR (KOVAR) had talked in regards to the thought of the corporate awhile in the past however she didn’t know he was creating it.
SHIELDS and KOVAR had been pals and he thought she could be nice to go up the corporate. He defined the corporate to her and principally handed the corporate to her.
SHIELDS knew nothing about cryptocurrency till she moved to Las Vegas and discovered about it by taking part in round on NICEHASH for about two years.
[Agent Note: During the interview, the Agents used various terms such as cryptocurrency exchange, private wallet, and noncustodial wallet. SHIELDS was unfamiliar with these terms and responded she was just the pretty face of the company.]
PIE formally launched on January 20, 2025. They’re within the technique of incorporating and it isn’t worthwhile but.
PIE has a 100% money-back assure. PIE’s worth will not be primarily based on the worth of cryptocurrency and may make this assure due to their $1.8 million reserves.
SHIELDS stated at the beginning of the interview that KOVAR was instrumental in creating the web site however “is in any other case uninvolved.” SHIELDS later stated KOVAR is the primary programmer and foremost IT individual.
[Agent Note: Throughout the interview, SHIELDS kept making references to “her team” and the “IT team”.
When asked about the team, SHIELDS said she only dealt with KOVAR and did not know any names of other team members. Further, SHIELDS said KOVAR never talked about a team but she assumes they exist.]
SHIELDS stated KOVAR controls the content material of the web site but in addition stated she controls every little thing on the web site by telling KOVAR to alter something she doesn’t like.
Nevertheless, the web site says PIE has auditors and CPAs though, in response to SHIELDs, they don’t and regardless of her dislike that it says that.
PIE accepts buyer cash by means of Cashapp, which works to SHIELD’s private account, or Bitcoin. Any time SHIELDS receives cash, she instantly purchases Bitcoin, it goes into her Bitcoin pockets on CashApp, then she both sends it to KOVAR or it stays there.
SHIELDS later corrected and stated that it wasn’t going to KOVAR however to the server.
Folks can even pay with a debit or bank card by a Paypal bill. SHIELDS initially stated it was her Paypal however then agreed the account was “in all probability” underneath KOVAR however she will not be fearful the cash will disappear, “as a result of [KOVAR] is in regards to the
most sincere individual [SHIELDS] has ever met.”The client cash goes right into a noncustodial non-public pockets that’s managed by the server. SHIELDS later stated KOVAR is the server.
SHIELDS solely has entry to those wallets within the sense that she will be able to shoot a textual content to KOVAR to ship a buyer cash and he does it.
The web site exhibits how a lot cash they’re mining on a regular basis, SHIELDS recalled round $1.8 million. SHIELDS additionally stated this quantity is the “cushion” or “reserves” to guard clients.
The $1.8 million was mined when PIE was testing out the software program at first. The preliminary capital was $4,500
mined to $1.8 million.SHIELDS didn’t know who contributed the capital however she doesn’t know anybody apart from KOVAR who assisted in mining it.
SHIELDS first stated she controls the cryptocurrency pockets through which the $1.8 million in reserves is saved.
SHIELDS later stated KOVAR has entry to the pockets and the one manner she views the steadiness within the pockets is from what her
IT crew places on the web site. KOVAR is her foremost IT contact.When requested what proof SHIELDS has of the reserves present, SHIELDS stated she has seen the mining and the buying of the pc time.
She has seen the accounts on the datacenters they contract with and has seen the reserves.
KOVAR handles the contracts with the businesses and is in phone contact with the datacenters. SHIELDS has no cause to doubt him and he has at all times demonstrated honesty and integrity.
On the conclusion of the interview, the FBI Agent handed Shields a Grand Jury subpoena.
Along with Shields’ hilarious interview, the FBI has additionally subpoenaed Kovar’s Paypal account data.
Primarily based on Shields interview and picked up proof, the DOJ concludes “there’s in all probability trigger that Kovar is committing wire fraud” whereas out on launch.
First, it’s incredulous that PIE is mining greater than $1.8 million in Bitcoins every single day.
Provided that Revenue Join earned solely $350 from mining Bitcoins in its practically 4 years of operation, it’s absurd to assume that PIE might mine over $1.8 million every single day when it was organized simply three months in the past, has solely ten buyers, and is unprofitable.
Second, it incredulous that PIE has $1.8 million in reserves in simply three months, or that it could have a “coming quickly” enterprise relationship with Tesla, provided that Tesla denied having any relationship with Revenue Join.
Third, Kovar’s PayPal accounts present just a few small transactions from buyers totaling simply $4,500 in practically a month. That is according to Defend’s assertion that PIE has solely ten buyers and it isn’t worthwhile.
Fourth, Shields admitted that PIE’s web site falsely states that it employs CPAs, accountants, and attorneys who oversee its actions.
Key to all of that is Kovar agreeing to not “violate federal regulation or solicit buyers” as a part of the phrases of his launch.
Kovar’s guarantees to the Court docket imply nothing, notably as a result of he was truly conducting the PIE scheme when he agreed to abide by the circumstances.
He very effectively might have walked out of court docket together with his launch papers in hand and sat down at his laptop to right away proceed engaged on PIE.
Given the proof, Kovar can’t overcome the rebuttable presumption that no situation or mixture of circumstances will guarantee that he is not going to pose a hazard to some other individual or the group.
Consequently, the Court docket ought to grant the federal government’s movement to revoke Kovar’s launch and detain him pending trial.
Kovar has not challenged the DOJ’s movement because it was filed two weeks in the past. An order on the DOJ’s movement stays pending.