In a shocking turn of events, Jacob Kingston, the CEO of Washakie Renewable Energy, a Utah-based biodiesel company, has been charged with laundering proceeds of a mail fraud scheme that obtained over $511 million in renewable fuel tax credits from the Internal Revenue Service (IRS).
According to the indictment, Kingston, along with CFO Isaiah Kingston and California businessman Lev Aslan Dermen (aka Levon Termendzhyan), owner of NOIL Energy Group, allegedly schemed to file false claims for renewable fuel tax credits, causing the IRS to issue over $511 million to WRE.
The indictment also charges Jacob Kingston with filing nine false claims for refund on behalf of WRE in 2013. The IRS administered tax credits designed to increase the amount of renewable fuel used and produced in the United States. These tax credits were paid by the IRS regardless of whether the taxpayer owed other taxes.
From 2010 through 2016, the defendants allegedly created false production records and other paperwork routinely created in qualifying renewable fuel transactions along with other false documents. To make it falsely appear that qualifying fuel transactions were occurring, the defendants rotated products through places in the United States and through at least one foreign country.
The indictment further charges that the defendants laundered part of the scheme proceeds through a series of financial transactions related to the purchase of a $3 million personal residence for Jacob Kingston. Jacob and Isaiah Kingston are separately alleged to have laundered approximately $1.72 million in scheme proceeds to purchase a 2010 Bugatti Veyron.
If convicted, the defendants each face a maximum of 10 years in prison for each money laundering count and Jacob Kingston faces a maximum of 3 years in prison for each false tax return count. They also face a period of supervised release, monetary penalties, and restitution.
An indictment is an accusation. The defendants are presumed innocent until proven guilty.
Key Facts
- State: Utah
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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