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How Utah Court Builders’ Ponzi Scheme Exposes Local Fitness Industry Fraud Risks

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How Utah Court Builders Ponzi Scheme Exposes Local Fitness Industry Fraud Risks

Former leaders of Utah athletic court builder All-Courts LLC face felony fraud charges after prosecutors allege they used new customer deposits to fund personal debts rather than building courts.

The Scheme Unraveled

Ryan Wes Jones, 47, and Michael Christopher Duckett, 63, were each charged in the 4th District Court with six counts of communications fraud, two counts of securities fraud, and engaging in a pattern of unlawful activity. The charges, all second-degree felonies, stem from an alleged scheme that operated between January 2021 and August 2023. According to prosecutors, Duckett served as the owner and president while Jones held the vice president title for All-Courts LLC, which is based in Provo.

The core of the allegation involves a Ponzi-style mechanism where the business collected a 50% deposit from clients before starting work on residential athletic courts. Charging documents state that these deposits were diverted to pay operating costs, prior debts, and Duckett’s personal expenses. Employees reportedly described this practice as robbing Peter to pay Paul. By November 2022, the company had over 100 projects paid for by customers but failed to start or complete the work.

The financial scale of the alleged fraud is significant. All-Courts collected approximately $1,092,512 from 63 residential customers. Of these projects, only one was completed, though that client later alleged poor workmanship. Work began but was never finished on 20 projects, and no work was performed on the remaining 42 projects. This left approximately $825,137 in reported customer losses.

Personal Expenses Masked as Business Costs

Investigators uncovered evidence that personal spending was funneled through company accounts. One employee who observed Duckett’s personal expenses in the company’s QuickBooks account noted to investigators that Harley Davidson motorcycle payments, dirt bikes and personal vehicles were listed. Prosecutors state that former employees described persistent financial distress within the firm.

The Utah Division of Consumer Protection referred customer complaints to the Attorney General’s Office for criminal investigation. This referral followed a period where the company continued accepting new customer deposits with promises of prompt start dates despite an ever-growing backlog. A logistics manager hired in 2023 told investigators that he struggled to get anything done, noting he could not order materials because the company was unable to pay suppliers.

All-Courts LLC had its license revoked in 2023 before the charges were officially filed in October 2026. The revocation occurred prior to the Thursday when Jones and Duckett appeared in court. The timeline suggests a pattern of regulatory failure preceding the formal criminal indictment.

The Fallout for Utah’s Fitness Market

This case highlights specific risks within the residential construction sector, particularly for businesses building pickleball and volleyball courts. As demand grows for these facilities, investors will note that deposit structures carry inherent vulnerability if a firm lacks liquidity to complete projects. The bottom line is that collecting upfront capital without a verified supply chain or completed backlog creates a fragile business model.

Investors will note the distinction between legitimate growth and fraudulent expansion. In this instance, the company accepted new deposits while promising prompt start dates despite having no ability to fulfill them. This dynamic allowed the defendants to maintain an appearance of solvency while draining resources into personal accounts. The figure that matters for victims is the $825,137 in losses reported by customers whose projects were abandoned.

The legal consequences are severe. Both men face felony charges that carry significant prison time and financial penalties. Beyond the criminal charges, the revocation of their business license effectively bars them from operating legally in Utah. This outcome serves as a stark warning to other local construction businesses about maintaining transparent accounting practices.

For customers considering custom courts, due diligence is paramount. The history of All-Courts LLC shows that even established companies can collapse under the weight of internal mismanagement or deliberate fraud. Readers should consult with legal counsel before entering into large contracts involving significant deposits. The case underscores the importance of verifying a contractor’s ability to complete projects before handing over funds.

Regulatory Response and License Revocation

The Utah Division of Consumer Protection referred customer complaints to the Attorney General’s Office for criminal investigation after receiving reports of unfinished projects and financial mismanagement. This referral occurred while the company continued accepting new customer deposits despite an ever-growing backlog of unpaid work. All-Courts LLC had its license revoked in 2023 before the criminal charges were filed in October 2026, indicating regulatory action preceded formal prosecution.

The license revocation took place prior to the court appearance of Ryan Wes Jones and Michael Christopher Duckett, underscoring a timeline where state intervention happened well before the felony indictments. Investigators noted that the company’s inability to pay suppliers left a logistics manager hired in 2023 unable to order materials, further demonstrating operational collapse. These regulatory steps highlight how consumer protection mechanisms identified the fraud before criminal charges were brought.

How Deposits Enabled the Fraud

The business model of requiring a 50% deposit before starting work allowed All-Courts to collect funds without delivering services, creating a cash flow that was diverted to personal and operational expenses. Charging documents state that deposits from new customers were used to pay operating costs, prior debts, and Duckett’s personal expenses, a practice employees described as “robbing Peter to pay Paul.” This mechanism enabled the company to accept new payments while failing to start or complete existing projects.

By November 2022, All-Courts had over 100 projects paid for by customers but had not started or completed the work, demonstrating how the deposit system sustained the scheme despite growing non-delivery. The continued acceptance of deposits amid an expanding backlog allowed the defendants to maintain the appearance of solvency while diverting funds to personal use, as noted in employee observations of Harley Davidson motorcycle payments, dirt bikes, and personal vehicles in company accounts.

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