Prosecutors say indicted Washakie execs could flee country, hide in polygamous group if not detained

Prosecutors say indicted Washakie execs could flee country, hide in polygamous group if not detained

(Derek Hatfield, Shutterstock)


2 photos
Save Story
Leer en español

Estimated read time: 2-3 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

SALT LAKE CITY — When federal agents arrived two years ago at the offices of two Utah biodiesel executives suspected of a $500 million tax credit scheme, they found dust and empty desks.

Computers were either wiped of files or recently replaced. Bookcases held only dust tracing where binders and papers had been. Employees were absent due to "an alleged mold issue."

Someone tipped off Washakie Renewable Energy CEO Jacob Kingston and chief financial officer Isaiah Kingston that federal agents would serve search warrants at their businesses in February 2016, according to court filings unsealed Tuesday. Investigators aren't sure how the pair found out, but a witness alleged Jacob Kingston said a federal agent gave him warning.

Federal prosecutors pointed to the cleared workspace as evidence the pair will try to obstruct justice if the government does not detain them while their fraud case plays out. The men also tried to bribe and intimidate witnesses and Justice Department officials, according to a motion filed by the U.S. Attorney's Office for Utah.

The businessmen also may attempt to jet to Turkey, where prosecutors allege they do business and own a mansion — or hide in homes or offices associated with the polygamous group they belong to. The men are members of the Davis County Cooperative Society, or the Kingston Order, according to prosecutors.

"Multiple witnesses have stated that defendant Jacob and Isaiah Kingston's plan was to flee to Turkey to avoid arrest and prosecution in the United States," the motion states. Jacob Kingston was on his way to the airport in Salt Lake City to fly to Turkey with his family when he was arrested earlier this month, prosecutors wrote.

Related story:

The U.S. Attorney's Office announced Friday that a federal grand jury indicted the executives for allegedly creating phony production documents and other records from 2010 to 2016 in order to obtain tax credits from the federal government. They're also accused of laundering the money they allegedly netted during the time they billed the company as a premier producer of biodiesel and chemicals.

The pair have access to a private plane and personal pilot belonging to California businessman Lev Aslan Dermen, who also is charged in the case and flew to Turkey on the same day search warrants were served on his Los Angeles home and businesses, the motion states.

Scott Williams, Isaiah Kingston's attorney, said the filing unfairly connects his client to allegations that are based on "unfounded, inflammatory innuendo."

"Their motion in relation to detention is wholly without merit," Williams said.

Court documents list no attorneys for Jacob Kingston or Dermen.

Isaiah and Jacob Kingston are scheduled for an initial appearance in Salt Lake City's U.S. District Court on Wednesday morning.

Photos

Related stories

Most recent Utah stories

Related topics

Utah

STAY IN THE KNOW

Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

KSL Weather Forecast