Utah targets residential construction fraud with dedicated task force

SALT LAKE CITY (ABC4) — Utahns have lost $32 million in construction fraud over the last three years, according to the Utah Department of Commerce. Now, the state said it’s taking an aggressive stance to tackle the problem.

On Monday, the Department of Commerce announced the creation of a new task force with a full-time prosecutor dedicated exclusively to cases surrounding residential construction fraud.

“Creating the Residential Construction Fraud Task Force is a transformative step toward safeguarding consumers and restoring confidence in our construction industry,” said Utah Department of Commerce Executive Director Margaret Woolley Busse. “This initiative also puts bad actors on notice that Utah is committed to aggressively pursuing and prosecuting those who defraud our citizens, ensuring accountability and justice.”

Earlier this year, the Department of Commerce filed a lawsuit against Action Plumbing, Heating, Air, and Electric over alleged business practices they say abused homeowners and elderly adults and put homes at risk.

The lawsuit alleges in one instance a technician quoted a homeowner $11,000 for a new air conditioning unit to replace one that he claimed was “beyond repairing and too small to cool the home.” The homeowner denied the quote and sought a different opinion. According to the lawsuit, the homeowner was able to find a different repairman who fixed the unit for $50.

The Department of Commerce said complaints like the one against Action are escalating rapidly in the Beehive State. In 2024, the department reported 2,146 construction complaints. So far in 2025, the department has already processed 1,047 complaints. The average loss per consumer for construction fraud has reached a devastating $302,000, according to the Department of Commerce.

The new task force will have three main objectives in battling the rise in alleged construction fraud. The first is to foster cooperation among agencies, including law enforcement and local attorneys. The second is to educate consumers on best practices and provide training for industry professionals. Finally, the task force will research regulations in other states and work with industry groups to adopt new policies in Utah that can help protect consumers.

Utah leaders say they hope the work of the new task force will also help make Utah housing more affordable.

“Construction fraud is a direct threat to our efforts to put homeownership back in reach for our kids and grandkids,” said Utah State Sen. Cal Musselman (R-West Haven), who sits on the Senate Business and Labor Committee. “This Task Force is a transformative step to safeguarding the investments of Utah’s families today and in the future.”

As the Department of Commerce takes its more aggressive stance against construction fraud, it encouraged Utahns to move forward with their construction projects using several available resources, such as finding the right trusted contractor for the job.

For more information on the available resources, visit the Department of Professional Licensing’s website here.