A Utah man, Brian Gary Sewell, has been sentenced to three years in federal prison for orchestrating a multi-million dollar cryptocurrency fraud scheme and operating an unlicensed money transmitting business. The 54-year-old resident of Washington County received a 36-month sentence followed by three years of supervised release, according to a January 15 announcement from the U.S. Attorney’s Office for the District of Utah.
Sewell's fraudulent activities spanned over six years and involved two parallel schemes. From late 2017 through early 2024, he solicited investments from at least 17 individuals by falsely claiming professional credentials and promising outsized returns through a non-existent hedge fund. Prosecutors stated this scheme led to him obtaining over $2.9 million from victims.
In a separate operation between March and September 2020, Sewell managed Rockwell Capital Management, an entity used to illegally convert large sums of cash into cryptocurrency. Authorities labeled it an unlicensed money transmitting business that facilitated transactions for third-party clients, including criminals engaged in fraud and drug trafficking. These transactions totaled more than $5.4 million.
As part of his sentencing, Sewell has been ordered to pay a combined $3.8 million in restitution. The case also traces back to his involvement with the American Bitcoin Academy, an online platform he operated. The Securities and Exchange Commission (SEC) had previously charged Sewell and his firm in a civil enforcement action in February 2024. Without admitting or denying the allegations, Sewell and Rockwell Capital agreed to settle by paying $1.6 million in disgorgement and interest, along with a $223,229 civil penalty.
"This sentencing brings to an end a multi-million-dollar investment fraud scheme that used the operation of an unlicensed money transmitting business to defraud investors out of millions," said IRS-CI Phoenix Field Office Acting Special Agent in Charge Jarom Gregory. FBI Special Agent in Charge Robert Bohls added, "Sewell preyed on his victims by lying about his experience and promising returns he could not deliver."
