- Utah entrepreneur Brian Sewell incurred over $2.9M loss for 17 investors.
- He was sentenced to 3 years in federal prison for wire fraud involving unlicensed cryptocurrency transactions.
- Through an unlicensed cash-to-crypto service, he also moved nearly $5.4 million.
Southern Utah entrepreneur Brian Garry Sewell was sentenced to three years in federal prison on Januray 15, 2026, U.S. Attorney’s Office for the District of Utah. Prosecutors tied him to a long-running wire fraud scheme involving cryptocurrency. Authorities said Sewell convinced investors to hand over money and digital assets by promoting himself as an experienced professional who could deliver major returns.
According to the investigation, it was found that Sewell incurred over $2.3 billion in loss for investors. In addition to that, Sewell admitted that he operated a cash-to-crypto business without license, a service investigators said helped move large amounts of suspicious money.
Court Outlines Investor Fraud and Losses
Federal court records showed Sewell ran the investment scheme from December 2017 through April 2024. During that period, prosecutors said he collected funds from at least 17 investors.
He relied on false claims about his background and performance to secure more deposits. Consequently, victims trusted him with money that never produced the promised outcomes.
Judge Ann Marie McIff Allen sentenced Sewell to 36 months in prison followed by three years of supervised release. Additionally, the court ordered Sewell to pay $3,605,182 in restitution tied to the wire fraud case.
The repayment will go to defrauded investors, a mortgage lender, and a credit union. Officials said the restitution reflects both direct losses and related financial damage tied to the conduct.
Related: Missouri Attorney General Probes Bitcoin ATM Firms Over Growing Scam Reports
Unlicensed Cash-to-Crypto Business Drew Scrutiny
Besides the investor case, Sewell faced prosecution for operating an unlicensed money transmitting business from March 2020 through September 2020. Court documents said he managed Rockwell Capital Management and handled bulk cash conversions into cryptocurrency. Prosecutors said the company moved more than $5.4 million through these transactions.
Investigators said third parties used the service, including criminals involved in fraud and drug trafficking. Moreover, authorities said Sewell collected fees while ignoring federal compliance rules that help detect and block dirty money. The court ordered Sewell to repay an additional $217,727 in restitution to the U.S. Department of Homeland Security.
Federal Agencies Emphasize Enforcement Focus
Significantly, the sentencing combined two criminal cases into one prison term because the judge set both sentences to run at the same time. Hence, Sewell will serve a total of three years. The investigation involved IRS Criminal Investigation, the FBI in Salt Lake City, and Homeland Security Investigations.
Related: House Democrats Engage SEC Amid Heated Crypto Regulation Crash
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
