SALT LAKE CITY — The owners of Rubicon Contracting, a Bountiful-based landscaping company, have filed a $1 billion federal lawsuit against former Utah Attorney General Sean Reyes and his office, alleging that they fabricated a human trafficking case in 2023 to boost public perception and deflect attention from Reyes’ political controversies — including his ties to Tim Ballard, founder of Operation Underground Railroad.
The lawsuit, filed Tuesday in U.S. District Court, accuses Reyes and officials within the Attorney General’s Office (AGO) of orchestrating a “malicious, politically motivated raid” on Rubicon’s offices. The complaint alleges the raid was based on false affidavits and exaggerated claims of worker exploitation.
“This case is about government corruption and the abuse of the criminal justice system for personal and political benefit,” attorneys for Rubicon wrote.
The 2023 Raid and Human Trafficking Allegations
On Nov. 20, 2023, the AGO’s SECURE Strike Force raided Rubicon Contracting’s headquarters, accompanied by a FOX 13 News crew. Investigators seized computers, financial records, and business documents following a six-month probe into alleged labor trafficking involving workers brought to Utah through the H-2B visa program.
The state charged Rubicon executives with 50 criminal counts, accusing the company of confiscating passports, forcing foreign employees into company housing, and threatening deportation to coerce labor.
But according to the lawsuit, none of those allegations were true — and investigators knew it.
The company’s attorneys claim the AGO lied to a judge to obtain search warrants, citing fabricated evidence and misleading victim statements. Days before the warrants were approved, the Utah Legislature had requested an audit of Reyes’ office, amid growing scrutiny over his relationship with Ballard, who was under investigation for alleged sexual misconduct.
“The affidavits were chock-full of misrepresentations,” said Cameron Drommond, vice president of Scandia — Rubicon’s parent company. “The allegations made by the attorney general’s office were not supported by their own investigation.”
Court Findings: Warrants Based on False or Misleading Claims
In March 2024, 2nd District Judge Rita Cornish reviewed the state’s evidence and ordered a hearing on a motion to suppress the seized materials. The judge determined that the investigator’s statements “showed a reckless disregard for the truth” or omitted crucial context.
Among her findings:
- Employees still possessed their travel documents, despite claims they were confiscated.
- Workers chose to live in company housing and were not forced.
- The company was legally required to report worker departures to the U.S. Department of Labor, contradicting claims of threats or retaliation.
Following the ruling, prosecutors dropped all charges against Rubicon and its executives.
‘Reputation Will Never Fully Recover’
Rubicon’s attorneys say the damage is irreversible. During the investigation, major clients such as Intermountain Health and Walmart ended contracts with the company after being contacted by the Attorney General’s Office.
The lawsuit alleges that the AGO’s communications with Walmart’s legal team directly led to the termination of a major service contract, compounding millions in financial losses.
“The legal costs, lost opportunities, and emotional toll will never be fully recovered,” the complaint states. “The reputational harm will continue for years.”
Rubicon claims the fallout destroyed a $250 million real estate deal, froze the company’s assets, ruined credit lines, and cost the firm millions in revenue.
The plaintiffs are seeking $1 billion in damages, plus punitive damages and legal fees.
Political Context and Alleged Motive
The suit argues that Reyes’ office pursued Rubicon as part of a broader strategy to inflate human trafficking statistics and divert attention from mounting criticism over his ties to Tim Ballard — once a high-profile anti-trafficking advocate who later faced multiple misconduct allegations.
“State officials conspired to manufacture bogus charges to falsely inflate the public perception of human trafficking in Utah,” the lawsuit claims, adding that the raid was a “public spectacle” designed to project Reyes as tough on trafficking.
Both Reyes and the Attorney General’s Office declined to comment on the pending litigation.
Potential State Liability
If Rubicon wins the case, damages would be paid by Utah’s Division of Risk Management and require Legislative approval for any payout exceeding $2 million.
For context, Utah has previously paid:
- $13.5 million to the family of Lauren McCluskey, a University of Utah student murdered in 2018.
- $5 million to the family of Zhifan Dong, killed in 2022.
- Over $2 million to former Attorneys General Mark Shurtleff and John Swallow after failed criminal prosecutions.
Rubicon’s case could far exceed all previous settlements combined — marking one of the largest civil claims against the state in Utah history.
