South Salt Lake, Utah — (KUTV) When several businesses inside the Kingston polygamist empire, including Washakie Renewable Energy, was raided by federal agents Wednesday, officials where tight lipped. But in a 2News exclusive, a former employee, with intimate knowledge of the inner workings of the company tells us how she believes the Kingston family was running a well-oiled tax scam on the federal government.
The Kingston clan has dozens, possibly even more than 100 businesses that they run across the Salt Lake Valley, many of them in South Salt Lake City. Washakie, is one of the biggest. It claim to produce a bio-diesel, known as B-99. The company can get a dollar in tax credits for each gallon they produce, but this former employee says she isn't even sure the company was producing any of the fuel.
"There was very little fuel that came out of Washakie while I was there," said the woman, who wants to remain anonymous out of fear of reprisals from her former bosses.
She says the company would purchase B-99 from outside vendors, store it, repackage it, sell it, then get the tax credits.
"I think initially they might have done some production in bio-diesels but when they realized it wasn't as profitable as they were trying to make it. They found they had more profits off the tax credits," said the former employee. She also says her bosses, Washakie founders Isiah and Jacob Kingston, would sell one shipment of B-99 to an outsider company, then turn around, and on paper only, resell the same shipment up to four more times to a Kingston shell company.
The company would get not one, but five times the tax credits.
The woman, who worked for the company for a year, before quitting when she felt the company might be involved with illegal activities, provided us with documents that appear to substantiate her claims.
She says she has been working to get those documents into the hands of federal investigators.