A Utah man, John Earl Donaldson, was sentenced to two years in prison for financial fraud involving his business, Urban Armz LLC. Donaldson, 32, of Saratoga Springs, Utah, had pleaded guilty to conspiracy to commit wire fraud and conspiracy to launder money in May 2025.
U.S. District Court Judge Ann Marie McIff Allen also ordered Donaldson to serve three years of supervised release and pay $591,932.73 in restitution jointly with his codefendant.
According to court documents and statements made during hearings, from December 2021 through January 2023, Donaldson presented himself as the owner of Urban Armz LLC and claimed the business was a federal firearms licensee based in St. George. He misled two customers into believing that his company could provide large amounts of ammunition and that he had ties with a major ammunition supplier. After receiving payment from these victims, he did not deliver the products.
Donaldson further secured capital from a financial firm by falsely reporting his company’s revenues and altering bank statements to show non-existent income. In March 2022, after Russia invaded Ukraine, a Ukrainian American nonprofit and a Detroit-based company each tried to donate equipment such as body armor and bulletproof vests for first responders in Ukraine’s war zones. They paid Urban Armz more than $517,000 for this purpose; however, Donaldson did not fulfill these orders and instead used the funds for personal expenses. The total loss caused by Donaldson and his coconspirator reached nearly $592,000 across four victims.
“Defendant preyed on charitable donors seeking to help first responders on the front line in Ukraine. Stealing charitable donations is pernicious, but particularly so when the donations are meant to help those suffering horrific conditions in warzones,” said U.S. Attorney Melissa Holyoak of the District of Utah. “We will continue to work with our law enforcement partners to investigate and prosecute individuals who exploit others for their own financial gain.”
“Mr. Donaldson’s actions were more than just financial fraud; they were a heartless exploitation of a global crisis,” said Special Agent in Charge Robert Bohls of the Salt Lake City FBI. “By pocketing over $517,000 intended for life-saving equipment in Ukraine, he prioritized personal greed over the safety of first responders. The FBI remains dedicated to ensuring that those who use deception to defraud others are held fully accountable.”
The case was investigated by the FBI Salt Lake City Field Office (St. George Resident Agency) and IRS Criminal Investigation division.
Assistant United States Attorney Stephen P. Dent prosecuted the case.
