Utah resident Brian Gary Sewell has been sentenced to three years in federal prison for his role in defrauding investors out of approximately $2.9 million through an unlicensed cryptocurrency business.
Sewell pleaded guilty to wire fraud and was sentenced to 36 months in prison and three years of supervised release, according to a statement from the U.S. Attorney’s Office of the District of Utah.
The 54-year-old Washington County resident admitted to running two parallel schemes, both of which will run concurrently for a total of three years’ imprisonment. As part of this sentencing, he has been ordered to pay a combined $3.8 million in restitution.
Investment Fraud Scheme
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, collecting over $2.9 million.
Unlicensed Money Transmitting Business
Subsequently, from March 2020 to September 2020, Sewell launched another unlawful venture through Rockwell Capital Management, which authorities described as an unlicensed money transmitting business.
Sewell and his company converted bulk cash to cryptocurrency on behalf of third parties, including individuals engaged in fraud and drug trafficking. In total, he helped convert over $5.4 million worth of cash to cryptocurrency 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.
Previous SEC Charges and Settlement
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.
As part of the settlement, they 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.
Related DOJ Sentencing
Sewell’s sentencing comes a few months after the Department of Justice secured a four-year prison sentence for Samourai Wallet co-founder and CTO William Hill, and a five-year term for CEO Keonne Rodriguez. As part of their 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.