Utah Man Sentenced to Three Years for $2.9 Million Cryptocurrency Fraud Scheme

Utah Man Sentenced to Three Years in Federal Prison for Cryptocurrency Fraud

SALT LAKE CITY, UT — Brian Gary Sewell, a 54-year-old resident of Washington County, has been sentenced to three years in federal prison for defrauding investors out of approximately $2.9 million through an unlicensed cryptocurrency business. The U.S. Attorney’s Office of the District of Utah announced the sentencing on January 15, highlighting the severity of Sewell’s actions and their impact on victims.

Between December 2017 and April 2024, Sewell misled at least 17 investors by exaggerating his experience and promising unrealistic returns on their investments. Prosecutors revealed that he collected over $2.9 million by fabricating his qualifications and investment capabilities.

In a separate but related case, Sewell operated a cash-to-crypto service through his company, Rockwell Capital Management, which converted more than $5.4 million in cash to cryptocurrency without the necessary federal registration. This operation was deemed an unlicensed money transmitting business, and authorities noted that Sewell facilitated transactions for individuals involved in criminal activities, including fraud and drug trafficking.

“Brian Sewell preyed on his victims by lying about his experience and promising returns he could not deliver, leaving individuals and families to bear the consequences of his deception,” stated FBI Special Agent in Charge Robert Bohls.

Sewell pleaded guilty to wire fraud, leading to a sentence of 36 months in prison, followed by three years of supervised release. In addition to his prison term, he has been ordered to pay a total of $3.8 million in restitution to his victims.

The case against Sewell gained traction when he was first charged by the Securities and Exchange Commission (SEC) in February 2024. Although he reached a settlement with the SEC without admitting or denying the allegations, he was required to pay a civil penalty of $223,229, along with $1.6 million in disgorgement and interest.

Sewell’s arrest followed a federal grand jury indictment, and his sentencing comes on the heels of other high-profile cryptocurrency cases. Just months prior, the Department of Justice secured prison sentences for two executives from Samourai Wallet, who were ordered to forfeit $237.8 million in assets linked to illicit transactions.

As the cryptocurrency landscape continues to evolve, Sewell’s case serves as a stark reminder of the potential risks and consequences associated with unregulated investment schemes.