Kovars not putting up a fight in SEC’s Profit Connect case
Defendants Brent Carson Kovar and Joy Irene Kovar stand accused of running Profit Connect, which the SEC alleges was a $12 million dollar Ponzi scheme.
Recent filings suggest the Kovars don’t intend to put up a fight.
On July 21st the SEC filed a stipulation requesting an upcoming July 26th preliminary injunction hearing be rescheduled.
On July 23rd the court granted the stipulation, rescheduling the preliminary injunction hearing to August 9th.
The previously granted TRO has been extended until the August 9th hearing date.
The court’s order has also appointed Geoff Winkler of American Fiduciary Services LLC as Temporary Receiver of Profit Connect.
That ruling is effective immediately, placing Profit Connect and associated companies under control of the Temporary Receiver.
The first task of the Temporary Receiver will be to take a full accounting of Profit Connect and prepare a financial report.
To that end the Kovars have been ordered to cooperate with the Temporary Receiver and provide any requested information.
With respect to their own assets, the Kovars
shall prepare and deliver to the SEC a detailed and complete schedule of all of their personal assets, including all real and personal property exceeding $5,000 in value, and all bank, securities, and other accounts identified by institution, branch address and account number.
The accounting shall include a description of the sources of all such assets.
Mutual limited expedited discovery has also been granted, allowing the parties to conduct depositions and file discovery subpoenas.
I’ve scheduled our next case docket calendar check for August 10th.
Update 25th December 2021 – The Kovars have settled with the SEC.