Southern Utah man sentenced to 3 years in prison for crypto-linked wire fraud scheme

Core Viewpoint - A Southern Utah man was sentenced to three years in federal prison for wire fraud that cost investors millions, highlighting the risks associated with unlicensed money transmitting businesses and cryptocurrency exploitation [1][2]. Group 1: Fraud Scheme Details - Brian Garry Sewell, 54, was involved in a fraudulent scheme from December 2017 to April 2024, misleading investors about his ability to generate large returns, resulting in over $2.9 million obtained from at least 17 investors [3]. - Sewell operated Rockwell Capital Management as an unlicensed money transmitting business from March to September 2020, converting over $5.4 million in bulk cash into cryptocurrency for third parties, including criminals [4]. Group 2: Legal Consequences - Sewell was sentenced to 36 months in prison followed by 36 months of supervised release after pleading guilty to wire fraud [2]. - U.S. District Court Judge Ann Marie McIff Allen ordered Sewell to pay more than $3.6 million in restitution related to the wire fraud case, along with additional restitution to the U.S. Department of Homeland Security [5]. Group 3: Industry Impact - A Chainalysis report indicated that $17 billion in cryptocurrency was lost to scams and frauds globally, with an increase in impersonation tactics, social engineering schemes, and AI-generated scams [2]. - The FBI emphasized its commitment to holding offenders accountable in the cryptocurrency space, indicating a broader focus on regulating unlicensed financial services [1].