Utah Couple, Gun and Ammo Shop Owners, Indicted for Wire Fraud, Money Laundering, Utah 2024

A Utah couple, John Earl Donaldson, 31, and his wife, Carlie Elizabeth Winters, 29, of Saratoga Springs, have been arrested and indicted for allegedly running a gun and ammunition business and defrauding customers and financial firms of over $600,000.

According to court documents, Donaldson and Winters conspired together from December 2021 through January 2023 to illegally obtain money from customers of Urban Armz, LLC, a business they owned and operated. Through false pretenses, they allegedly lied about Urban Armz's inventory and ability to procure goods for which customers paid.

The indictment charges Donaldson and Winters with wire fraud conspiracy and money laundering conspiracy. Their initial court appearance on the indictment was April 14, 2024, at the United States District Courthouse in St. George, Utah.

The case is being investigated by the FBI Salt Lake City Field Office. Assistant United States Attorney Stephen P. Dent of the U.S. Attorney's Office for the District of Utah is prosecuting the case.

The indictment alleges that Donaldson and Winters falsely represented that they could sell large quantities of ammunition to potential customers for competitively low prices. In December 2021, a customer wired $90,000 to Urban Armz for 300,000 rounds of ammunition. Urban Armz never delivered the ammunition. Instead, Donaldson and Winters spent the customer's funds on transfers to unrelated parties, shopping, credit card payments, and other withdrawals.

In April 2022, a company headquartered in Detroit, Michigan, paid Urban Armz $300,000 through wire transfers for body armor it intended to donate to Ukraine first responders in war zones. Urban Armz never delivered the body armor. In June 2022, a nonprofit dedicated to supporting Ukrainian immigrants and refugees living in the United States paid Urban Armz $217,098.98 for night vision goggles, thermal optics, and other equipment for Ukrainian first responders serving in war zones. Again, Urban Armz did not deliver the equipment and instead Donaldson and Winters spent the money on unrelated parties, shopping and other things.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The exact dollar amount that Donaldson and Winters allegedly obtained through their scheme is over $600,000.

Source: https://www.justice.gov/usao-ut/pr/utah-county-residents-arrested-and-accused-running-fake-gun-and-ammo-business-cost