DENVERThe U.S. Attorney’s Office for the District of Colorado said Wednesday that Bryant Edwin Sewall, 57, a former resident of Little Elm, Texas, was found guilty of 14 counts of wire fraud and one count of conspiracy to commit wire fraud. Sewall was sentenced to 23 years in federal prison. The allegations are related to a $179 million foreign exchange investment scheme that used distorted account statements and fraudulent promises to mislead investors.
The fraudulent scheme was operated by Sewall and Michael Shawn Stewart, 61, of Scottsdale, Arizona, through the Caribbean-based businesses Mediatrix Capital and Blue Isle Markets. According to evidence presented at trial, Sewall and Stewart falsely marketed their algorithm-based foreign exchange trading program as a highly successful venture dating back to 2013, despite Mediatrix not existing until 2014 and experiencing numerous months of losses. Promises of world-class returns, 100% transparency, and 100% liquidity enticed investors.
Prosecutors claimed that after investors were on boarded, the two falsified account statements to hide losses and preserve the appearance of success. Only $9.8 million remained in the companies’ accounts at the end of the scam, despite having promised nearly $179 million in profits. The hole is what Sewall and Stewart called the deficiency. According to records, they made $28 million in performance fees and received $45 million in false markup fees through their brokerage, but they also lost $32 million in transactions. Luxury goods including jewelry, vehicles, boats, and real estate accounted for a large portion of the expenditures.
Acting U.S. Attorney Matt Kirsch stated that this is a severe punishment for a severe offense. For the numerous victims of Sewall’s heinous deeds, justice was served. In addition, Sewall was mandated to reimburse his victims $93 million.
On the same accusations, Michael Shawn Stewart was found guilty and will be sentenced later. Michael Young, a third conspirator, was sentenced to one year and one day in jail earlier this year after entering a guilty plea to filing a false statement to the Securities and Exchange Commission.
Judge William J. Martinez presided over Sewall s sentencing in the U.S. District Court for the District of Colorado. The Federal Bureau of Investigation s Denver Field Office led the investigation, with prosecution handled by Assistant U.S. Attorneys Anna Edgar and Bryan Fields.
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