Kingston polygamist group could lose hundreds of millions in assets to federal seizure

(KUTV) — Federal officials indicate they will seize potentially hundreds of millions of dollars in assets from a Utah polygamist group in connection to a tax fraud investigation.

Jacob, Isaiah, Sally and Rachel Kingston all entered guilty pleas this week, admitting they took part in a tax scheme estimated at approximately $1 billion in connection with Washakie Renewable Energy.

In court documents filed this week, federal prosecutors list two pages of assets from Washakie that will be forfeited to the government. Many of the properties are affiliated with the Davis County Co-op Society, a non-profit organization owned by the Kingstons.

The property forfeiture agreement lists the fuel plant that belonged to Washakie in Box Elder County, as well as 50 other commercial and residential properties in Utah.

The agreement also indicates the government will seize a waterfront mansion in Huntington Beach, Calif. and properties in Texas, Turkey, and Belize. The government lists luxury cars, including a Bugatti, two Lamborghinis, and a Ferrari in its seizure.

The Kingstons will also have to give up millions of dollars in bank accounts.

The federal investigation first surfaced when IRS and Department of Justice officials raided several Kingston properties in February 2016.

Prior to the guilty pleas, federal prosecutors were planning a month-long trial that was set to begin later this month. The witness list included potentially hundreds of people, including Bryan Nelson and his wife, Mary, who were featured on the CBS program "Whistleblower" for their role in the case.

“The Kingston clan is finally being brought to justice. This is the beginning of it,” Bryan Nelson told 2News Friday afternoon. “I really want to thank the investigators and the prosecutors in this case.”

While Nelson is pleased that the Kingstons have pleaded guilty, he is adamant that there are additional crimes going on in the Kingston group that need to be investigated.

“There has to be a way to stop a systematic organization committing crimes against women and children,” Nelson said.

The four Kingstons who pleaded guilty each face potentially decades in prison. A business partner of the Kingstons, Lev Aslan Dermen, also faces federal charges for the alleged tax fraud, though it is not clear if he intends to enter a plea agreement with prosecutors.