Washakie Renewable Energy is being sued for failure to pay more than $400,000 in rent for 11 leased railcars to transport vegetable oil.
The self-professed largest producer of clean-burning and sustainable biodiesel in Utah is said to have violated a renewed and extended contract with Chicago-based, SMBC Rail Services, LLC.
The original lease agreement began April 18, 2011, and was for 36 months at $640 per month for each railcar. The lease was renewed July 14, 2014, at an increased rate of $1,000 per railcar each month and then extended to end July 31, 2019.
However, Washakie's CEO Jacob Kingston, and his brother, CFO Isaiah Kingston - both linked to a polygamous group - pleaded guilty to multiple counts of fraud in what prosecutors have called a $511 million tax credit scheme in July 2019. That same month, the extended lease agreement expired.
Upon the expiration of the lease term, Washakie was required to return the railcars at a determined location but failed to do so, the lawsuit states. The suit additionally states that Washakie owes the company $407,153,62 in unpaid rent and fees and collection costs incurred in attempts to reconcile the debt.
The suit was filed in First District Court in Box Elder County on Friday and requests that a judge order the county sheriff’s office to allow SMBC to get their railcars from the property (shown in a Google aerial photo).
Aside from the recently filed complaint, federal officials have indicated they are seizing an estimated hundreds of millions of dollars in assets from the Kingston group in connection to the aforementioned tax fraud investigation.
Click here or below to read the full complaint.