Utah Resident Convicted in Major Wire Fraud Operation Involving Unlicensed Crypto Services

A 54-year-old Washington County resident has been handed a three-year federal prison sentence for orchestrating a wire fraud scheme that systematically exploited investors through unauthorized cryptocurrency transactions. Brian Garry Sewell pleaded guilty to charges involving wire fraud and was ordered by U.S. District Court Judge Ann Marie McIff Allen to pay more than $3.6 million in restitution to his victims.

The wire fraud operation targeted at least 17 investors between December 2017 and April 2024, extracting over $2.9 million through deceptive promises of investment returns. According to the U.S. Attorney’s Office for the District of Utah, Sewell misrepresented his qualifications and experience to convince victims to send him money and cryptocurrency, claiming he possessed the expertise to generate substantial profits.

The Mechanics Behind the Wire Fraud Scheme

Beyond the direct investor fraud, Sewell also operated Rockwell Capital Management as an unlicensed money transmitting business from March through September 2020. This operation converted more than $5.4 million in bulk cash into cryptocurrency, charging transaction fees while knowingly servicing third parties involved in criminal activities, including fraud and drug trafficking operations.

The dual nature of the wire fraud operation—targeting individual investors while simultaneously facilitating illicit financial flows—demonstrated the sophisticated nature of cryptocurrency-enabled financial crime. These activities violated federal regulations governing money transmission and wire fraud statutes.

Federal Law Enforcement Response and Broader Context

Special Agent in Charge Robert Bohls of the Salt Lake City FBI emphasized the agency’s commitment to combating such schemes: “The FBI will continue to put victims first by holding offenders accountable and pursuing those who misuse cryptocurrency and unlicensed financial services to exploit others.”

The Sewell case arrives amid growing concerns about cryptocurrency-related fraud. A recent Chainalysis report documented that $17 billion in cryptocurrency was lost to scams and frauds globally, with impersonation tactics, social engineering schemes, and AI-generated scams driving the increase in financial crimes. This broader context underscores why federal authorities are intensifying enforcement actions against wire fraud operations exploiting digital assets.

The sentencing includes 36 months of supervised release following the prison term, with the court ordering additional restitution to the U.S. Department of Homeland Security alongside victim compensation, reflecting the multi-victim and cross-agency nature of the wire fraud charges.