Last week, a businessman from the city of Los Angeles was sentenced to a whopping 40 years behind bars for the tax crimes he committed. The charges involve his conspiring with a polygamist family from Utah in order to defraud a U.S. tax program out of over $1 billion.
Overview
In Salt Lake City, Utah, U.S. District Judge Jill Parish handed the offender Lev Dermen his sentence. 56-year-old Lev Dermen was given one of the largest sentences for a fraud case that the United States has seen in 15 years. Dermen is accused of escalating a tax fraud plan that was run by a family in Utah known as the Kingston family. According to Utah prosecutors, the Kingston family is a “close-knit, insular community, practicing polygamy.” Albert Childress is head of the IRS office in Phoenix, and he referred to this case as “one of the most egregious examples of tax fraud in U.S. history.”
Kingston Family
According to Utah Authorities, the Kingston Family are members of the Order, which is the largest polygamist group in the United States. The Order is also considered an organized crime group with roughly 10,000 members. They also control over 100 businesses in the western United States.
Two Worlds Collide
When Lev Dermen met the Kingston family, he saw them as a perfect fit for the fraud we wanted to commit, according to prosecutors. This is because when Dermen meant Jacob Kingston, Kingston was the CEO of Washakie Renewable Energy, and this company had already filed several false claims to the Environmental Protection Agency for tax credits regarding renewable fuel sources. The friendship between Lev Dermen and Jacob Kingston quickly grew, as Jacob Idolized the lifestyle of Dermen. Dermen was always seen traveling in luxury armored vehicles, and his best buddies were law enforcement officers that were known for their corruption.
Charges
According to prosecutors, Jacob Kingston and one other Kingston family member are being charged with stealing roughly $500 million from the government and plotting to steal roughly $600 million more. Jacob Kingston pleaded guilty to the charges against him and his currently serving out his 18 year prison sentence. After seven weeks of deliberation, Lev Dermen was sentenced to 40 years in prison. Court documents note that Dermen used the funds he stole to buy a 150 yacht, a Bugatti sports car, and much more. Jacob Kingston received a much lighter sentence because he testified against Lev Dermen.
Wrap Up
This particular case of fraud is one of the larger cases being talked about in the last decade or so. These fraudsters may have been living lavishly for a little while, buying mega boats and luxury cars, but eventually the law catches up to everyone.