A Utah man who misrepresented his business, Urban Armz, LLC, as a federal firearms licensee based in St. George, was sentenced to 24 months’ imprisonment for financial fraud.
John Earl Donaldson, 32, of Saratoga Springs, Utah, pleaded guilty on May 19, 2025, to conspiracy to commit wire fraud and conspiracy to launder money.
Donaldson allegedly falsely represented to customers that his business could fulfill orders to help first responders in Ukrainian warzones. Instead, the defendant and his coconspirator spent the money on personal expenses.
In addition to Donaldson’s term of imprisonment, U.S. District Court Judge Ann Marie McIff Allen sentenced Donaldson to three years of supervised release and ordered him to pay $591,932.73 jointly and severally with his codefendant.
According to court documents and admissions made at Donaldson’s change-of-plea and sentencing hearings, between December 2021 and January 2023, in the District of Utah, Donaldson engaged in financial fraud by holding himself out as the owner and operator of Urban Armz LLC, a purported federal firearms licensee.
He falsely represented to two customers that his company sold large quantities of ammunition and had an established business relationship with a major ammunition supplier. When Donaldson received the victims’ money, he failed to deliver the ordered products. At one point, Donaldson obtained capital from a financial firm by lying about his company’s revenues and altering bank statements to reflect fictitious revenues.
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In March 2022, shortly after Russia invaded Ukraine, a Ukrainian American nonprofit and a Detroit-based company separately sought to donate needed supplies to first responders (police, paramedics, and firefighters) in war zones.
Those entities paid Urban Armz to deliver body armor, bulletproof vests, and other equipment to Ukraine. Donaldson lied about his ability and intent to fulfill the order. He instead took the charitable donors’ money—over $517,000—and spent it elsewhere, including on personal expenses. In all, Donaldson and his coconspirator caused a $591,932.73 loss to 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.”
The case was investigated jointly by the FBI Salt Lake City Field Office, St. George Resident Agency and Internal Revenue Service – Criminal Investigation (IRS-CI).
"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."
Assistant United States Attorney Stephen P. Dent of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
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