LOGAN — A 39-year-old man faces a felony money laundering charge after police uncovered an alleged multi-state scheme involving fraudulent returns of dietary supplements at various grocery stores.
Diamond C. Kearney was charged with one count of money laundering, a second-degree felony, following a routine traffic stop in Logan. According to charging documents, a Logan police officer initially pulled Kearney over for speeding on Main Street. During the stop, the officer noted that Kearney was driving a rental vehicle and presented a New York driver’s license.
When the officer ran the license, it showed Kearney had an active arrest warrant out of Ogden. He was taken into custody, and a personal search yielded what police described as a suspicious amount of cash in his pockets and wallet.
Kearney denied officers permission to search the rental car. However, due to the large sum of cash, police deployed a K-9 unit. After the dog alerted to the possible presence of drugs, officers conducted a probable cause search of the vehicle.
Inside, investigators discovered three cellphones and a massive collection of receipts. The receipts, primarily for $50 purchases of the over-the-counter supplement CoQ10, spanned multiple states.
According to the investigating officer, criminal networks frequently transport stolen merchandise like CoQ10 across state lines to be laundered for cash. Investigators allege Kearney engaged in a sophisticated return fraud scam using “washed” receipts. He would allegedly purchase the items, return them to secure a valid return receipt, and then reuse that single receipt to process up to 10 fraudulent refunds.
The receipts were primarily linked to Ralphs and Albertsons grocery stores. A loss prevention representative for Ralphs confirmed Kearney was associated with a negative transaction balance exceeding $32,000 between August and October 2025.
Bank records revealed Kearney was allegedly pulling in about $15,000 per month through the fraudulent returns. He then filtered the money through standard retail purchases and Cash App transfers. Authorities noted several of his other bank accounts had already been closed due to fraud and loss concerns.
Court documents state Kearney has a lengthy history of convictions and warrants for fraud, theft by deception and money laundering across nine states, including Utah. Following the vehicle search, officers seized the cash, merchandise, phones and receipts.
A judge granted the request for a new arrest warrant. Kearney previously faced a communications fraud charge in Layton in 2020, though that case was later dismissed without prejudice.
Individuals arrested and charged in complaints are presumed innocent unless or until proven guilty beyond a reasonable doubt in court.