First Profit Connect employee settlement reached

Brent Kovar’s penchant for
lavishing gifts on women he hired
, was revealed by the Profit Connect Receiver last November.

The Temporary Receiver identified three Profit Connect employees with the responsibilities of administering the financial and personnel operations of Profit Connect: SW, a former pharmacy technician hired as the accounting manager and, as she has stated, a long-term girlfriend of Brent Kovar, RU, a former pharmacy technician hired as an accountant, and JM, with no prior job experience who was hired as the junior accountant and receptionist at the warehouse.

The accounting staff could not demonstrate even the most elementary understanding of business accounting best practices, the accounting staff was overcompensated based on their skills and experience, the accounting staff were provided lavish non-cash gifts for their efforts, the accounting staff unquestionably followed Brent Kovar’s every request, and there were unusual and inappropriate relationships with the accounting staff.

“RU” has been identified as Ramona Uriarte. She is the first Profit Connect employee to settle with the Receiver.

As per a provisional settlement filed by the Receiver on March 16th, Kovar loaned Uriarte $387,786 to buy a house in Nevada.

It is the Receiver’s understanding that, even though the transaction between Profit Connect and Ms. Uriarte was not memorialized in writing, the parties intended for Ms. Uriarte to repay the $387,786.94 transferred to her.

Pursuant to that agreement, the Receiver sought recovery of the $387,786 from Uriarte.

Ms. Uriarte, however, does not have $387,786.94 on hand.

To enable the repayment, Ms. Uriarte intends to seek a mortgage by refinancing the property, but, due to underwriting rules and policies, cannot do so until she has lived in the property for at least one year, which will be in April 2022.

The provisional settlement agreement between Uriarte and the Receivership will see Uriarte

pay $2000 a month for four months “to account for her continued use of Profit Connect funds”; and

surrender the property to the Receivership if refinancing is not approved.

At time of publication, approval of Uriarte’s provisional settlement remains pending.

Update 12th May 2022 – 
Ramona Uriarte’s settlement was approved on May 5th.

🤖 Quick Answer

Who were the three key employees in Profit Connect's accounting operations?

What deficiencies were found in Profit Connect's accounting staff?
The accounting staff demonstrated inadequate understanding of fundamental business accounting practices and were significantly overcompensated relative to their qualifications and experience levels, indicating systemic management failures in financial operations.

What conduct by Brent Kovar was disclosed by the Receiver?
The Temporary Receiver revealed that Brent Kovar had a pattern of providing gifts to women he hired, raising concerns about potential conflicts of interest and inappropriate conduct in personnel management decisions

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