SEC accuses mother-son team of hyping phony stock-picking supercomputers — named Orwell and Tesla — in alleged investment scam

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Joy and Brent Kovar allegedly claimed their non-existent AI-driven computers could deliver guaranteed annual returns up to 30%.

The Securities and Exchange Commission has moved to shut down what it says is a Ponzi scheme run by a mother and son team who allegedly walked off with more than $12 million after selling investors on the idea that they had developed a fool-proof, stock-picking supercomputer.

In 2010, Brent Kovar was permanently barred by the SEC from serving as an officer in a company or selling securities for his role in a pump-and-dump scheme in Florida involving a phony anti-terrorism business. His mother had also played a role in that company, although she wasn’t charged. “ ‘Investors should be wary of individuals and firms who guarantee double-digit returns with no risk of loss.‘ ”

 

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