Executives Behind Caribbean-Based Investment Firms Convicted of Multi-Million Dollar Fraud
Two executives who led investment firms headquartered in the Caribbean have been convicted of defrauding global investors through a deceptive foreign exchange trading scheme, partially operated from Colorado, according to federal prosecutors.
Bryant Edwin Sewall, 57, of Texas, and Michael Shawn Stewart, 61, of Scottsdale, Arizona, were at the helm of Mediatrix Capital and Blue Isle Markets. Both men misled investors by promoting an algorithm-based foreign currency exchange program, “ForEx,” with false claims about its success and history.
Prosecutors revealed that the duo falsely stated the program had been operational for years and consistently profitable, despite Mediatrix not existing at the time of their claims. Once investors were onboard, the executives manipulated financial statements to maintain trust.
By the time the scheme unraveled, the pair had promised over $179 million to investors but held only $9.8 million in their accounts. Despite incurring approximately $32 million in trading losses, Sewall and Stewart pocketed around $28 million in fees, using the money to purchase real estate, luxury cars, boats, jewelry, and other extravagances.
On November 14, Sewall was sentenced to 23 years in prison and ordered to pay $93 million in restitution. Stewart’s sentencing remains pending.
“Mr. Sewall and his co-defendants orchestrated an elaborate foreign currency investment fraud scheme that caused extensive financial harm to unsuspecting victims,” said Mark Michalek, FBI Denver Special Agent in Charge. “They created an illusion of profitability while misusing investor funds for personal gain.”
The fraudulent operation began unraveling in 2019 when the U.S. Securities and Exchange Commission (SEC) secured an emergency asset freeze and restraining order against the men and their companies.
While the SEC’s civil case is still ongoing, federal criminal charges were filed in 2021. Six months ago, both Sewall and Stewart were convicted on 14 counts of wire fraud and one count of conspiracy to commit wire fraud.
The third conspirator, Michael Young, primarily responsible for marketing Mediatrix’s programs, admitted to providing false information to investors. Young, who operated in Colorado, pleaded guilty to making a false statement to the SEC earlier this year and received a prison sentence of one year and one day.
Efforts to finalize the forfeiture of Sewall’s assets, including properties in Puerto Rico, Florida, the Bahamas, and Arizona, as well as several luxury vehicles and boats, are ongoing.
“This case highlights the importance of vigilance when dealing with investment opportunities that appear too good to be true,” Michalek emphasized.