Utah HVAC Contractor Convicted on Tax Evasion, Payroll Fraud Charges
Key Highlights
- Wayne Margetts was convicted on 11 felony counts including tax evasion and false tax reporting.
- The scheme involved underreporting wages and paying employees off the books over a five-year period.
- Authorities estimate over $780,000 in wages were concealed, resulting in unpaid taxes and penalties.
- Sentencing for Margetts is scheduled for June 4, 2026.
SALT LAKE CITY, Utah — A Tooele County HVAC business owner has been convicted on 11 felony counts tied to tax evasion and off-the-books payroll practices, according to Utah authorities.
A Third District Court jury on May 1 found Wayne Margetts guilty after a five-day trial. The convictions include five counts of tax evasion, five counts of rendering a false tax return or supplying false information, and one count of pattern of unlawful activity. Sentencing is scheduled for June 4, 2026.
According to the Office of the Attorney General, Margetts paid more than 30 employees approximately $1.6 million between 2013 and 2018. However, investigators said only about $820,000 in wages was reported to the Utah State Tax Commission. Authorities alleged more than $780,000 in compensation was concealed from the state.
Investigators said the scheme involved underreporting employee hours, manipulating wage rates, paying workers off the books, and issuing checks to an employee’s spouse without corresponding tax withholdings.
Utah law requires employers to withhold state income taxes from employee wages and remit those payments quarterly to the Utah State Tax Commission. Authorities said Margetts failed to meet those requirements for five years.
The state estimated approximately $20,000 in withholding taxes went unpaid, with another estimated $25,000 in interest and penalties owed.
The Utah State Tax Commission’s Criminal Investigation Unit investigated the case, while the Financial Crimes Division handled prosecution efforts.