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kingston family's $1 Billion biofuel fraud case ends in prison sentences totaling 83 years
Jacob Kingston sentenced to 18 years, brother Isaiah to 12 years, mastermind Lev Dermen to 40 years; $511 million judgment tied to seized properties.
UPDATE: A federal case tied to one of the largest biofuel tax fraud schemes in U.S. history resulted in a combined 83 years in prison for five defendants.
Jacob Kingston, former CEO of Utah-based Washakie Renewable Energy, received 18 years. His brother Isaiah Kingston received 12 years, their mother Rachel Kingston received 7 years, and Jacob’s wife Sally Kingston received 6 years. Los Angeles businessman Lev Dermen received 40 years.
Federal prosecutors said the group fraudulently claimed more than $1 billion in renewable-fuel tax credits, with the IRS ultimately paying Washakie more than $511 million. The scheme involved falsified records, international money transfers and billions of dollars moved through bank accounts to make transactions appear legitimate.
The money was also tied to extravagant purchases, including a Bugatti, Ferrari, Lamborghini, yacht and luxury real estate.
The prison sentences were originally imposed in 2023, while litigation connected to the case and its assets has continued into 2026.
