SALT LAKE CITY — The Utah Department of Commerce has created a new Residential Construction Fraud Task Force and appointed the state’s first full-time construction fraud prosecutor to address a surge in consumer complaints and financial losses tied to homebuilding scams.
The move comes as reported construction fraud losses in Utah have totaled more than $32 million over the past three years, according to the Division of Consumer Protection. In 2024 alone, the Division of Professional Licensing (DOPL) received 2,146 construction complaints, with another 1,047 already filed in the first half of 2025. Average losses in new home construction cases reached a staggering $302,000 per consumer.
“Creating the Residential Construction Fraud Task Force is a transformative step toward safeguarding consumers and restoring confidence in our construction industry,” said Margaret Woolley Busse, Executive Director of the Utah Department of Commerce. “This initiative also puts bad actors on notice that Utah is committed to aggressively pursuing and prosecuting those who defraud our citizens, ensuring accountability and justice.”
The new task force will bring together representatives from DOPL, the Division of Consumer Protection, the Office of the Attorney General, law enforcement, prosecutors, and lawmakers — including Utah Sen. Cal Musselman and Rep. Tom Peterson.
“Construction fraud is a direct threat to our efforts to put homeownership back in reach for our kids and grandkids,” Musselman said. “This Task Force is a transformative step to safeguarding the investments of Utah’s families.”
Peterson, a building official by profession, said he has witnessed the damage firsthand.
“Construction fraud erodes the very foundation of trust essential for a stable housing market in Utah,” he said. “I’m excited to take a proactive approach as a member of this Task Force to combat this threat.”
The initiative outlines three priorities: aggressive enforcement using interagency coordination and the state’s new dedicated prosecutor; expanded education and outreach for consumers and industry professionals; and proactive regulatory reform, including the development of new policies to close loopholes and improve accountability.
Steve Waldrip, the Governor’s senior advisor for housing, strategy, and innovation, said the effort supports broader affordable housing goals by ensuring homeowners can trust contractors.
New tools for homeowners are also being introduced, including a Utah Residential Construction Agreement template — a fill-in-the-blank contract designed to clarify expectations and reduce fraud. The Department of Commerce is also promoting existing resources such as the “7 Steps to Home Improvement Success” guide, contractor license verification tools, and access to complaint portals.
More information is available at dopl.utah.gov/contracting/resources.
Utah homeowners can file a complaint at either the Division of Professional Licensing or the Division of Consumer Protection.