Scott M. Boley and Robert Landford, both of Mesa, Ariz., and Douglas Morby of Ogden stole money from 400 businesses in Utah and Arizona after promising to hold their clients' money in trust accounts, prosecutors said. Instead, the men allegedly used the money to pay unauthorized operating expenses, buy unrelated businesses and make personal investments.

The company, Provident Management Group Inc., operated in Salt Lake City, American Fork, Provo and Mesa until the spring of 2003.

On Wednesday, Landford, 55, the company's chief operating officer, was sentenced to five years and 10 months in prison. He was charged with three counts of conspiracy, mail fraud and willful failure to pay taxes.

Morby, 50, the company CEO, was sentenced to three years in prison. And the company president, Boley, 48, was sentenced to 30 months. The two pleaded guilty in March to one count of conspiracy for their roles in the scheme.

U.S. District Judge Dale Kimball also ordered the men to pay $2.2 million restitution.

The three men are scheduled to begin their prison sentences on Dec. 3. They also face three years of supervised release after serving their sentences.

The defendants allegedly duped businesses by handing out falsified invoices and tax forms while never sending taxes to the IRS. Federal officials said victims included a design firm, orthodontics' clinics, development companies and construction and painting businesses.

Businesses that employ payroll servicing companies need to be cautious, federal officials said. Companies are not relieved of their duties to pay taxes even if something goes wrong with the company they hired for that purpose.

- Dawn House