By Tracie Sullivan, For Iron County Today
A Cedar City developer who built dozens of homes over the last decade is now facing a criminal investigation, civil litigation, and mounting allegations of fraud and misconduct.
David Bruce Kuykendall, owner of the now-defunct Diamond K Construction, is charged with theft, fraud, and acting as a contractor without a license, according to court documents filed in 5th District Court.
The affidavit alleges Kuykendall continued contracting work after the Utah Division of Professional Licensing (DOPL) revoked his license on June 10, 2024, by operating under Nuway Construction, LLC, doing business as Black Rock. Prosecutors allege he used another licensed contractor’s credentials while excluding them from legally required oversight roles.
The charges stem from Kuykendall’s more recent work under Nuway Construction, which did business as Black Rock Development. Iron County Deputy Prosecutor Sam Woodall said the fraud case began with several complaints from homeowners and gradually expanded into a broader investigation.
“This is just the top of the pile,” Woodall said in an interview. “As we dig, who knows where that’ll take us. There’s a staggering amount of documentation and it’s very paper-heavy.”
Iron County Sheriff Ken Carpenter confirmed his deputies are still actively investigating the case, which he said involves “a lot of different threads.”
“There’s a lot to this case,” he said. “They have been investigating it for at least six months and they still have so much to go through. It’s going to take some time.”
According to DOPL, Kuykendall operated Diamond K for years by fraudulently listing two individuals — William “Dusty” Pulsipher and Marty Matthews — as licensed qualifiers, the legally required supervisors for construction activity.
In sworn declarations cited in DOPL’s revocation order, both men stated they were never employees, never compensated, and never involved in the company’s operations. Pulsipher added that he “never intended to be involved with Diamond K.”
“They had no idea their licenses were being used, and they were never compensated or involved,” said Cedar City Councilman Tyler Melling. “That’s a major breach of the trust the system relies on.”
One DOPL finding states: “Respondent [Diamond K] submitted license renewal applications in 2016, 2017, 2019, 2021, and 2023 affirming that the qualifiers were actively involved. This was not true.”
The fallout impacted multiple projects. Once the license was revoked, city inspectors were prohibited from continuing work on Diamond K homes — many of which were mid-construction, Melling said. Several homeowners were forced to reclassify their builds as “owner-builder” projects to keep moving forward.
“If our inspectors knowingly inspect unlicensed work, their own licenses can be revoked,” he said. “That’s a huge liability.”
DOPL records and internal company correspondence show Kuykendall attempted to continue operations by partnering with licensed individuals, including 88-year-old Korean War veteran Chuck Waddell, through NuWay Construction. Waddell later surrendered his license after discovering he was being excluded from supervising the work — a legal requirement for license qualifiers.
“Chuck genuinely wanted to be involved,” Melling said. “But Bruce wouldn’t let him actually supervise the work, and so Chuck pulled out.”
The DOPL investigation also found that Diamond K submitted license renewals year after year falsely claiming its qualifiers were actively involved. One office manager, Kniesha Carter, told investigators she was the one submitting the paperwork while Kuykendall stood over her shoulder telling her how to answer.
In her interview with DOPL, she stated, “I completed the online application with Bruce standing next to me and instructing me how to answer the questions.”
Kuykendall denied this allegation, blaming staff for the filings.
Meanwhile, Kuykendall, through Diamond K Engineering & Grading, filed a civil lawsuit on May 31, 2024, against former employees Kniesha Carter and Bretten Lozano. The complaint accuses them of stealing proprietary records and redirecting clients to their new company, White Rock Home Builders LLC.
In April, Carter filed a civil stalking injunction against Kuykendall, which was temporarily granted. Three additional requests — two filed by Lozano and one duplicate — were denied by the court, which cited a lack of evidence of ongoing threats beyond the parties’ legal disputes.
Woodall confirmed the current fraud charges are limited to Kuykendall’s conduct under Nuway/Black Rock but said Diamond K remains under investigation.
“It’s being looked at,” he said. “I just can’t say where it will go yet.”
For now, city officials say they’re focused on protecting homeowners.
“The public relies on contractors to be licensed,” Melling said. “When corners are cut, it creates problems for everyone.”
In a separate case, prosecutors also recently filed a separate assault charge against Kuykendall and his son, Ian Roscoe Kuykendall, stemming from an alleged altercation with a former employee at the Diamond K office in October 2023. The case was initially declined by Cedar City prosecutors but later refiled by the county after new evidence came to light.
CORRECTION: An earlier version of this story incorrectly referred to the company Nuway Construction LLC as “New Wave Construction” in two instances due to an inadvertent error during the editing process. The correct name is Nuway Construction LLC, doing business as Black Rock. New Wave Construction is not involved in this story nor any criminal activity mentioned. We apologize for this error and have corrected the story.
1 comment
Simon
No surprise a Pulsipher was involved. Not sure how that family is still in business in Utah