A Utah man has been sentenced to three years in federal prison by the US Department of Justice after prosecutors proved he defrauded investors of nearly $3 million. He ran an unlicensed cash-to-crypto operation that moved funds tied to criminal activity.
Brian Garry Sewell, 54, of Washington County, Utah, received a 36-month prison sentence for wire fraud, followed by 36 months of supervised release. This sentence was handed down after he pleaded guilty to two federal cases.
In a separate criminal case, the DOJ also charged Sewell with operating an unlicensed money transmitting business, for which he received a sentence of 36 months’ imprisonment and 36 months of supervised release. The court ordered these sentences to run concurrently, resulting in a total of three years behind bars.
US District Court Judge Ann Marie McIff Allen also ordered Sewell to pay $3,605,182 in restitution to defrauded investors, a mortgage lender, and a credit union in the wire fraud case. In the money transmitting case, he was ordered to pay $217,727 in restitution to the US Department of Homeland Security.
“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,” stated Special Agent in Charge Robert Bohls of the Salt Lake City FBI.
Sewell's Fraudulent Schemes
Sewell admitted that he solicited money and crypto from at least 17 investors by misrepresenting his background and capabilities. These false claims enabled him to swindle more than $2.9 million from investors, according to the government.
Prosecutors stated that much of the money was never invested as promised, leading to substantial losses for the victims. Sewell repeatedly reassured victims and continued to solicit more funds even as earlier promises remained unfulfilled.
In addition to defrauding investors, Sewell admitted to operating an unlicensed money transmitting business that converted bulk cash into cryptocurrency from March to September 2020. He led Rockwell Capital Management, a business he operated without the required federal registration.
The company exchanged more than $5.4 million in cash for crypto on behalf of third parties for a fee. The DOJ found that these transactions were linked to fraud and drug trafficking.
Further court records detailing activity between June 2020 and May 2021 showed that Sewell used Rockwell Capital Management to transfer more than $2.6 million on behalf of a separate entity through wire transfers, subsequently converting these funds into digital currencies.
Authorities confirmed that neither Rockwell Capital Management nor its related entities obtained licenses to operate as money transmitting businesses.
“The US Attorney’s Office thanks our federal partners, and prosecutors for their hard work on this investigation and commitment to holding individuals like Sewell accountable,” said Attorney Melissa Holyoak.
Steve Cagen, Homeland Security Investigations Denver Special Agent in Charge, added that the department will continue to pursue individuals who move illicit funds.
The investigation also led to charges against Keen Lee Ellsworth, 57, a resident of Toquerville, Utah. Sewell and Ellsworth collaborated, with Ellsworth using his entity, Ellsworth & Associates, to send more than $2.5 million to Sewell.
Broader Concerns Regarding Crypto ATMs
This case emerges as law enforcement agencies issue nationwide warnings about crypto-related fraud, particularly concerning crypto ATMs. The FBI reported that $240 million was lost to ATM scams in the first six months of 2025, a figure double the pace seen during the same period in 2024.
Spokane Police Detective Tim Schwering shared his experience with CNBC, stating, “Cases started flowing my way where people were getting ripped off by cryptocurrency machines.” He noted that the funds are often moved overseas to countries like China, Russia, and Nigeria, making it difficult for officers to recover the money or apprehend those responsible.