A California businessman accused of helping a pair of Utah polygamists expand a biodiesel fraud scheme that ended up stealing nearly $500 million in government funds was found guilty yesterday on 10 counts including money laundering and mail fraud. The verdict against gas station owner Lev Dermen came despite his attorney urging the judge to declare a mistrial based on the contention that jurors shouldn't be kept in close quarters during the spread of the coronavirus when everyone is supposed to be practicing social distancing. Attorneys from the Department of Justice argued during the nearly seven-week trial that Dermen sold polygamist Jacob Kingston on the idea that he had an umbrella of government officials he knew who would protect the scheme from investigation and prosecution. Under that false aura of protection, a fraud that started with just Kingston and his brother grew with Dermen as the government paid out claim after claim until they were denied the final $650 million claim they made in 2015. The three men were indicted in 2018. Kingston, his brother and two other family members took plea deals last year on money fraud and other charges. Jacob Kingston testified against Dermen at the trial. John Huber, U.S. attorney for the District of Utah, touted the convictions as the culmination of the largest tax fraud case in Utah history and a major strike against the Kingstons' polygamous group that he said law enforcement has long believed practice fraud. Dermen and the Kingstons used the money to buy luxury sports cars and milliondollar homes.
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