PORTLAND, Ore. — Two Utah men have been indicted by a federal grand jury in Oregon for allegedly orchestrating a scheme that defrauded the Internal Revenue Service (IRS) and the Small Business Administration (SBA) out of more than $5.5 million through fraudulent payroll records, false tax filings, and misuse of COVID-19 relief programs.
Federal prosecutors announced Tuesday that David Starling, 61, and Benjamin Young, 39, both of Provo, Utah, have been charged with conspiracy to defraud the United States. Young also faces 12 counts of wire fraud. A third defendant, Adam Starling, 55, of Sherwood, Oregon, previously pleaded guilty to conspiracy charges on May 13, 2026.
According to court documents, the three men owned or controlled eight companies and allegedly created a fraudulent payroll scheme during 2020 and 2021. Prosecutors say the defendants falsely listed family members—including spouses and children—as employees of their businesses. In one example cited in court records, Young’s minor children were reportedly listed as employees of five of the companies.
Authorities allege the defendants submitted false tax documents claiming they had paid more than $4 million in wages to these fictitious employees. The fraudulent filings were then used to obtain federal COVID-19 relief benefits through programs administered by the IRS and SBA.
Investigators say the scheme resulted in approximately $3 million in fraudulently obtained tax credits and an additional $200,000 in Paycheck Protection Program loans, which were later forgiven based on allegedly false statements.
Prosecutors further allege that Young used proceeds from the fraud scheme, along with funds he allegedly embezzled from his employer, to purchase a commercial property in Provo for $3.5 million.
According to the indictment, Young later attempted to conceal the alleged embezzlement by working with David Starling to fabricate documents showing that Starling had provided a $2.5 million loan for the property purchase. Federal authorities say the falsified records helped Young secure a $2.5 million bank loan backed by the SBA.
Once the loan was funded, prosecutors allege Young spent much of the money on unsuccessful options trading, the purchase of a condominium for relatives, and continued operation of the false payroll scheme.
The case has also led to a separate civil forfeiture action. On Nov. 21, 2025, the U.S. Attorney’s Office for the District of Oregon filed a lawsuit seeking forfeiture of the commercial property and condominium allegedly purchased with proceeds of the fraud. That case remains pending.
David Starling and Young are scheduled to make their initial appearances in federal court on July 31, 2026.
If convicted, both men face up to five years in federal prison for conspiracy to defraud the United States, along with up to three years of supervised release and a $250,000 fine. Young could face an additional maximum sentence of 20 years in prison on each wire fraud count.
Adam Starling is scheduled to be sentenced on Aug. 26, 2026. He faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
U.S. Attorney Scott E. Bradford announced the charges. The investigation is being conducted by the IRS Criminal Investigation and the Small Business Administration Office of Inspector General. Assistant U.S. Attorneys Christopher Cardani and Meredith Bateman are prosecuting the case.
Federal officials noted that the prosecution aligns with the Department of Justice’s newly established National Fraud Enforcement Division and broader efforts to combat fraud involving federal benefit programs.
An indictment is an allegation of wrongdoing. All defendants are presumed innocent unless and until proven guilty in a court of law.
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