A federal court has sentenced Brian Garry Sewell, a 54-year-old resident of Washington County, Utah, to three years in prison for running a multi-million-dollar wire fraud operation alongside an unlicensed cryptocurrency money-transmitting business.
According to prosecutors, Sewell orchestrated two separate schemes over several years that together caused significant financial harm to investors and facilitated criminal activity.
Fake Hedge Fund and Fabricated Credentials
Between 2017 and 2024, Sewell defrauded at least 17 investors of more than $2.9 million by posing as a sophisticated investment professional. He falsely claimed to hold degrees from Johns Hopkins University and Stanford University, and promoted a hedge fund promising attractive, consistent returns.
In reality, the hedge fund never existed. Court filings revealed that Sewell’s highest level of education was a GED, and investor funds were misappropriated rather than professionally managed.
Illegal Cash-to-Crypto Operation
In a separate scheme in 2020, Sewell used his firm, Rockwell Capital Management, to operate an unlicensed money-transmitting business. Authorities say he converted more than $5.4 million in bulk cash into cryptocurrency for third parties, charging fees per transaction.
Federal investigators determined that some of the funds were tied to drug trafficking and fraud, placing the operation squarely in violation of U.S. financial and anti-money-laundering laws.
Sentencing and Restitution
U.S. District Court Judge Ann Marie McIff Allen imposed:
- 36 months in prison for wire fraud
- 36 months for unlicensed money transmitting, to run concurrently
- 36 months of supervised release after imprisonment
Sewell was also ordered to pay $3,605,182 in restitution to defrauded investors, a mortgage lender, and a credit union, along with an additional $217,727 to the U.S. Department of Homeland Security.
Investigation
The case was jointly investigated by the FBI Salt Lake City Field Office, IRS Criminal Investigation, and Homeland Security Investigations, underscoring growing federal scrutiny of crypto-related fraud and illicit financial activity.
The sentencing adds to a growing list of enforcement actions highlighting that cryptocurrency businesses operating outside licensing and compliance frameworks remain a priority target for U.S. authorities.
