A resident of southern Utah has been sentenced to three years in federal prison for orchestrating a cryptocurrency-related fraud scheme and operating an illegal cash-to-digital asset conversion activity, according to US authorities.
The U.S. Attorney’s Office for the District of Utah announced that Brian Garry Sewell, 54, was sentenced to 36 months of imprisonment, followed by three years of supervised release, after pleading guilty to electronic fraud.
Nearly 3 million dollars diverted from investors
Between December 2017 and April 2024, Sewell allegedly deceived at least 17 investors by promising high returns through sophisticated and mastered cryptocurrency investment strategies. Prosecutors estimate that the total amount diverted exceeds 2.9 million dollars.
The court also ordered Sewell to pay over 3.6 million dollars in restitution to the victims, as well as an additional amount to the U.S. Department of Homeland Security.
A crypto/cash conversion activity
In a separate case, authorities revealed that Sewell operated Rockwell Capital Management as an unregistered money transmission business. Between March and September 2020, this entity reportedly converted more than 5.4 million dollars in cash to cryptocurrencies on behalf of third parties, including individuals involved in fraud and drug trafficking.
Investigators state that Sewell earned commissions on each transaction without having the required regulatory licenses for such activities.
The FBI emphasized that this conviction is part of a broader effort to protect investors from the rise in digital asset scams. This case comes shortly after the release of a Chainalysis report estimating global losses from cryptocurrency scams at 17 billion dollars, fueled by social engineering and the increasing use of AI tools.
Federal authorities warn that crypto services operating outside regulatory frameworks pose a major risk to individuals and the integrity of the financial system.
