Two Utah residents have been indicted for operating an unlicensed money-transmitting business, converting over $2.5 million into cryptocurrency. The U.S. Department of Justice (DOJ) announced the arrests of Brian Garry Sewell and Keen Lee Ellsworth in Washington County over the weekend.
Details of the Indictment
The DOJ and the U.S. Attorney’s Office for the District of Utah revealed that Sewell and Ellsworth were indicted in St. George, Utah, for their illegal activities between March and September 2020. Ellsworth, operating under Ellsworth & Associates, transferred over $2.5 million to Sewell, who then converted these funds into cryptocurrency through his entity, Rockwell Capital Management. Both businesses operated without the required licenses.
From June 2020 to May 2021, Sewell used Rockwell Capital Management to transfer over $2.6 million on behalf of another entity. According to the DOJ:
“Sewell received the funds via wire transfer and then converted the funds into cryptocurrency.”
Additional Charges Against Sewell
In a separate case, Sewell appeared in court following a federal grand jury indictment last week. He faces multiple federal charges, including wire fraud, making false statements in connection with loans, and money laundering. The DOJ detailed that from December 2017 to April 2024, Sewell engaged in a scheme to defraud investors by misrepresenting his experience, education, and ability to generate substantial returns. The DOJ stated:
“For example, Sewell falsely claimed to investors that he ran previous cryptocurrency funds that generated significant returns.”
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Sewell’s fraudulent activities resulted in him obtaining at least $2.5 million. He falsely claimed to have managed successful cryptocurrency funds and fabricated his educational credentials, asserting degrees from Johns Hopkins University and Stanford University.
Legal Proceedings and Implications
The legal proceedings against Sewell and Ellsworth highlight the importance of compliance with financial regulations, especially in the rapidly evolving cryptocurrency market. The charges reflect serious breaches of trust and legal standards, emphasizing the DOJ’s commitment to enforcing laws that protect investors and maintain market integrity.
