Profit Connect defense attorneys bail, Receiver updates
On August 12th attorneys for Profit Connect defendants Brent Carson Kovar and Joy Kovar filed a motion to withdraw.
The cited reason for the withdrawal was non-payment, as well as issues securing out-of-state counsel familiar with SEC proceedings.
The law firm Hayes Wakayama assisted the Kovars with ‘securing ‘a highly experienced and competent SEC lawyer based in Los Angeles’.
Together, the firm and the attorney ‘provided Defendants with sound legal advice and representation’.
That was apparently going well until
recently, the SEC lawyer withdrew from being involved with the case.
No explanation for the procured attorney withdrawing is provided (note “SEC lawyer” refers to an attorney familiar with SEC litigation, not an actual SEC lawyer).
Accordingly, as of the date of filing this Motion, Hayes Wakayama only represents the Kovars in this matter.
Hayes Wakayama never would have appeared in this case had Defendants not promised to retain SEC counsel to appear as co-counsel.
Moreover, Hayes Wakayama recently learned that Defendants, and now the Kovars, are unable to pay Hayes Wakayama for both past and future legal services.
As such Hayes Wakayama wanted out. The court granted their motion to withdraw on August
In their motion Hayes Wakayama confirm ‘neither Brent nor Joy Kovar object to Hayes Wakayama’s withdrawal.’
As of yet there is no entry suggesting replacement counsel has been filed. How the Kovars intend to proceed litigation wise is thus unclear.
At the time of publication a decision on the motion to withdraw remains pending.
Hayes Wakayama were also representing Profit Connect, now under control of a court-appointed Receivership.
Earlier this month the Profit Connect Receiver informed Hayes Wakayama that Profit Connect was terminating Hayes Wakayama’s representation in this matter due to a perceived conflict.
The conflict of issue arose from Hayes Wakayama representing both Profit Connect and the Kovars.
In correspondence sent to Hayes Wakayama, the Receiver took the position
that Profit Connects [sic] interests are adverse to Joy and Brent Kovar’s interests and would be adverse to the interest of any other person who was or is affiliated with Profit Connect.
In related news, the Profit Connect Receiver has sought permission to hire a forensic computer expert.
Based on the Receiver’s investigation to date, Profit Connect
built and dispatched specialized hardware in an effort to mine certain cryptocurrency.
Among other things, the Receiver requires specialized knowledge to assist him in continuing to investigate Profit Connect’s efforts in this regard.
A ruling on that request is also pending.
Separately on August 11th, the Receiver requested permission to have Profit Connect’s associated website domains redirected.
The domains in question were “profitconnect.com”, “profitconnect-agnet.com”, “profitconnect-wealthservices.com” and “profitconnect.me”.
The Receiver sought ownership of the domains through Profit Connect Wealth Services Inc.
After ownership has been transferred, the domains were then to be redirected to the Profit Connect Receivership’s website: “profitconnect-receivership.com”.
The court granted the Receiver’s domain motion on August 16th.
Update 28th September 2021 – On September 21st the court granted the Profit Connect Receiver permission to employ a computer forensic expert.