United States v. Sewall

CourtCourt of Appeals for the Tenth Circuit
DecidedApril 9, 2026
Docket25-1001
StatusUnpublished

This text of United States v. Sewall (United States v. Sewall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Sewall, (10th Cir. 2026).

Opinion

Appellate Case: 25-1001 Document: 74-1 Date Filed: 04/09/2026 Page: 1 FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT April 9, 2026 _________________________________ Christopher M. Wolpert Clerk of Court UNITED STATES OF AMERICA,

Plaintiff - Appellee,

v. No. 25-1001 (D.C. No. 1:21-CR-00034-WJM-2) BRYANT EDWIN SEWALL, (D. Colo.)

Defendant - Appellant. _________________________________

ORDER AND JUDGMENT * _________________________________

Before BACHARACH, McHUGH, and ROSSMAN, Circuit Judges. _________________________________

A jury convicted Appellant Bryant Edwin Sewall of fourteen counts of wire

fraud and one count of conspiracy to commit wire fraud. He now appeals that

conviction. We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

I. BACKGROUND

In late 2015, Mr. Sewall became one of three partners in a company called

Mediatrix. Beginning in March 2016, Mediatrix accepted money from clients and

After examining the briefs and appellate record, this panel has determined *

unanimously to honor the parties’ request for a decision on the briefs without oral argument. See Fed. R. App. P. 34(f); 10th Cir. R. 34.1(G). The case is therefore submitted without oral argument. This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1. Appellate Case: 25-1001 Document: 74-1 Date Filed: 04/09/2026 Page: 2

invested it in the foreign currency exchange (forex) market. Mr. Sewall’s partners

were Michael Stewart and Michael Young. Mr. Young’s primary role was marketing,

i.e., bringing in new investors. Mr. Stewart’s primary role was operations (e.g.,

managing banking relationships), but he also participated to some degree in

marketing. Mr. Sewall’s primary role was trading, especially through a proprietary

algorithm he developed.

To actually send trades to the market, Mediatrix worked through a specialized

broker named Divisa, later named Equiti. As will become important below, Equiti

would not necessarily execute every requested trade. It imposed limits on how large

of a position a client could take within a given amount of time, and it would reject

trades that exceeded those limits.

Mediatrix made money by taking a percentage of the upside when it made a

profitable trade. On top of that, Messrs. Sewall, Stewart, and Young established a

brokerage named Blue Isle to hold client funds, and that brokerage charged a small

markup on every trade, whether winning or losing. Messrs. Sewall, Stewart, and

Young therefore profited both through Mediatrix’s cut of the winning trades and Blue

Isle’s markups. For purposes of this order and judgment, we will refer to Mediatrix

and Blue Isle collectively as “Mediatrix.”

In September 2019, the Securities and Exchange Commission (SEC) froze

Mediatrix’s assets on suspicion of fraud. In February 2021, a grand jury indicted

Mr. Sewall (along with Mr. Stewart) on the wire fraud and conspiracy counts

previously mentioned. In a separate action, Mr. Young pleaded guilty to one count of

2 Appellate Case: 25-1001 Document: 74-1 Date Filed: 04/09/2026 Page: 3

lying to the SEC 1 and agreed to testify on the government’s behalf in the case against

Mr. Sewall and Mr. Stewart.

A jury heard Mr. Sewall’s and Mr. Stewart’s case in May 2024. The trial lasted

twelve days and included more than thirty witnesses. The government presented

evidence that Mediatrix brought in about $129 million in client funds between March

2016 and September 2019 (when the SEC shut it down). But falsehoods continually

infected Mediatrix’s marketing pitches and materials, particularly the claim that the

trading algorithm (i.e., Mr. Sewall’s algorithm) had never had a losing month. In

truth, Mediatrix frequently had losing months.

Mediatrix kept its losses hidden from clients because client statements only

showed the profit or loss of closed trades, a.k.a. “closed P&L.” The clients were not

told about open trades, most of which were trending downward and would someday

need to be closed at a loss unless the market happened to turn around. In other

words, clients were blind to the “floating P&L,” so named because the profit or loss

continually changed as the market fluctuated. Such a system allows a forex trader,

such as Mr. Sewall, to

quite literally handpick . . . the winning trades that he or she would like to report to his [or her] clients. They could report, say, a profit of $5,000 in realized [i.e., closed] trades. . . . [I]f a client were only told about how they did on their realized activity, they thought they would have made that money, but all the time lurking underneath could

1 Mr. Young told the SEC he began raising money for Mediatrix and 2016 when he had actually begun raising money in 2015. 3 Appellate Case: 25-1001 Document: 74-1 Date Filed: 04/09/2026 Page: 4

be a loss of $250,000 that is floating and getting that much worse for their account that they would have no idea.

R. vol. VII at 2051.

Touting its record of consistently profitable closed trades, without disclosing

outstanding liabilities, Mediatrix continually claimed to clients and prospective

clients that the company had never had a losing month. This induced some

prospective clients to invest, and some current clients to invest more. This was the

ultimate basis for the wire fraud charges, i.e., using false pretenses to induce

investors to wire money to Mediatrix.

Mediatrix’s system of reporting only profitable trades without disclosing

floating losses led to an ever-widening gap between what clients saw when they

checked their account balances and what Mediatrix could pay if clients chose to

withdraw some or all of that balance. When Mediatrix shut down, clients’ purported

account balances added up to almost $180 million but the company had a little less

than $10 million in assets, and the cumulative floating P&L was negative $33.2

million. Nonetheless, over the course of Mediatrix’s existence, Messrs. Sewall,

Stewart, and Young earned $24 million in performance fees—the upside percentage

Mediatrix took on purportedly profitable trades—and $45 million in markup revenue.

Mr. Young testified on the government’s behalf. He claimed he did not know

about Mediatrix’s true financial condition, but instead pitched potential investors

using the information Mr. Stewart and Mr. Sewall gave to him. Mr. Stewart testified

on his own behalf. He admitted Mediatrix had been a failure but claimed it was the

4 Appellate Case: 25-1001 Document: 74-1 Date Filed: 04/09/2026 Page: 5

product of poor business judgment and misplaced trust, not deceit. Mr. Sewall did

not testify.

The jury convicted on all counts. The district court later sentenced Mr. Sewall

to 276 months’ imprisonment and ordered him to pay more than $93 million in

restitution. 2

We will provide more details as they become relevant to Mr. Sewall’s

arguments, discussed below.

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