$40M Fraud & Money Laundering Charges Hit Scottsdale Business Partners
A federal grand jury in Salt Lake City has returned a 16-count indictment against two men, charging them with various financial crimes, including wire fraud and money laundering, according to the U.S. Attorney’s Office for the District of Utah.
Aaron A. Wagner, 42, who resides part-time in Scottsdale, Arizona, was initially charged on October 23, 2024, and taken into custody, the department confirmed. Wagner and his business partner, Michael Mains, 46, of Alpine, Utah, were officially indicted on November 6, 2024.
From March 2021 through the present, Wagner and Mains allegedly operated a scheme to defraud lenders and investors, leading them to send millions of dollars to entities under Wagner’s control, including Wagscap Food Services LLC. The entities involved in the scheme reportedly included several popular food and beverage brands, such as Hello Sugar, Dirty Bird, Everbowl, Crumbl Cookies, and Las Botellas.
The U.S. Attorney’s Office reported that Wagner assured investors that their funds would be used for developing specific restaurants. However, he allegedly diverted these funds for personal expenses, other investments, and to support separate projects where he held an interest. Wagner is further accused of creating a false image of wealth and success by showcasing a lavish lifestyle, which included private jets, luxury cars, and extravagant vacations. Court documents allege that he failed to disclose to investors that much of his apparent success was funded by their investments.
According to the indictment, Wagner also used funds from new investors to pay off earlier ones. The scheme reportedly allowed him to accumulate over $40 million, a portion of which was allegedly spent on personal purchases, including a $4 million second home in Scottsdale, Arizona, an $8 million private jet, a $4.5 million commercial property intended to serve as a nightclub, and an $8 million real estate property in Missoula, Montana.
The U.S. Attorney’s Office reminds the public that an indictment is an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
