DENVER – Bryant Edwin Sewall, 57, formerly of Little Elm, Texas, was sentenced to 23 years in federal prison after being convicted of 14 counts of wire fraud and one count of conspiracy to commit wire fraud, the U.S. Attorney’s Office for the District of Colorado announced Wednesday. The charges stem from a $179 million foreign currency investment scheme that defrauded investors through false promises and manipulated account statements.
Sewall, alongside Michael Shawn Stewart, 61, of Scottsdale, Arizona, ran the fraudulent operation through companies Mediatrix Capital and Blue Isle Markets, which were based in the Caribbean. 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. Investors were lured with promises of “100% transparency,” “100% liquidity,” and “world-class returns.”
Once investors were onboarded, prosecutors said the pair manipulated account statements to conceal losses and maintain the illusion of success. By the time the scheme unraveled, the companies had promised over $179 million in returns but held only $9.8 million in their accounts. Sewall and Stewart referred to the deficit as “the hole.” Records showed they had lost $32 million in trades while personally profiting $28 million in performance fees and collecting $45 million in fraudulent markup fees through their brokerage. Much of the money was spent on luxury items, including real estate, cars, boats, and jewelry.
“This is a serious sentence for a serious crime,” said Acting U.S. Attorney Matt Kirsch. “Justice was done for the many people who were victimized by Sewall’s outrageous crimes.” Sewall was also ordered to pay $93 million in restitution to his victims.
Michael Shawn Stewart, who was convicted on the same charges, is scheduled to be sentenced at a later date. A third conspirator, Michael Young, previously pleaded guilty to making a false statement to the Securities and Exchange Commission and received a sentence of one year and one day in prison earlier this year.
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.