Utah resident Brian Gary Sewell has been sentenced to three years in federal prison for his role in defrauding investors out of roughly $2.9 million through an unlicensed cryptocurrency business.
Summary
- Brian Gary Sewell was sentenced to three years in federal prison for defrauding investors and running an unlicensed cryptocurrency business.
- Prosecutors said he collected over $2.9 million from at least 17 victims by misrepresenting his experience and investment capabilities.
- A separate case found Sewell operated a cash-to-crypto service that converted over $5.4 million for third parties without proper registration.
Sewell pleaded guilty to wire fraud and was sentenced to 36 months in prison and three years of supervised release, a Jan. 15 statement from the U.S. Attorney’s Office of the District of Utah said.
The 54-year-old Washington County resident admitted to running two parallel schemes, both of which will run concurrently with each other for a total of three years’ imprisonment, federal prosecutors noted. As a part of this sentencing, he has been ordered to pay a combined $3.8 million in restitution.
Between December 2017 and April 2024, Sewell allegedly “obtained money from at least 17 investors by lying about his experience, education, and ability to generate large returns” and managed to collect over $2.9 million.
Subsequently, from March 2020 to September 2020, he launched another unlawful venture, this time through Rockwell Capital Management, which authorities said was “an unlicensed money transmitting business.”
“Sewell and his company converted bulk cash to cryptocurrency on behalf of third parties, including criminals engaged in fraud and drug trafficking,” the prosecutors said.
You might also like: XRP price holds 50-day MA as Binance whale inflows drop to their lowest level since 2021
In total, he helped convert over $5.4 million worth of cash to cryptocurrency and did so “without complying with federal laws designed to prevent the movement of illicit funds.”
“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,” FBI Special Agent in Charge Robert Bohls was quoted as saying.
As previously reported by crypto.news, Sewell also operated the American Bitcoin Academy and was first officially charged by the Securities and Exchange Commission in February 2024.
At the time, Sewell and Rockwell Capital Management reached a settlement with the SEC without admitting or denying the allegations and were ordered to pay a $223,229 civil penalty alongside $1.6 million in disgorgement and interest.
He was later arrested in Salt Lake City after a federal grand jury returned an indictment against him.
Sewell’s sentencing comes just a few months after the DOJ secured a 4-year prison sentence for Samourai Wallet co-founder and CTO William Hill, and a five-year term for CEO Keonne Rodriguez.
As part of the sentencing, the duo agreed to forfeit $237.8 million in assets linked to illicit transactions and paid roughly $6.3 million in criminal monetary penalties and restitution.
Read more: Democrats slam SEC over crypto ‘pay-to-play’ concerns
