Overview of Jacob and the Lion: A Cult, a Gangster and a Billion-Dollar Tax Fraud
This episode follows an extraordinary fraud scheme that connected a fundamentalist Mormon sect, a charismatic Armenian gangster, and a massive green-energy tax scam. At the center is Jacob Kingston, a member of the Kingston clan/Davis County Cooperative Society, who tried to build status within his controlling religious community by succeeding in business. That ambition led him into a partnership with Levon “the Lion” Tremendjian, an alleged Armenian mob figure, and together they exploited U.S. biodiesel subsidies through Washakie Renewable Energy, ultimately defrauding taxpayers of roughly $1 billion.
Key Players
Jacob Kingston
- A smart, educated member of the Kingston group with a doctorate and engineering background.
- Grew up under a rigid, abusive, debt-ridden family system where status was tied to becoming a “numbered man.”
- Wanted money, respect, and approval from his family and the sect’s leadership.
- Became the face of the biofuel company and later cooperated with investigators after the scheme collapsed.
Levon “the Lion” Tremendjian
- A larger-than-life Armenian businessman with alleged organized crime ties.
- Presented as generous, flashy, and community-minded, but with a dark criminal reputation.
- Helped move the scheme beyond simple fuel trading into paperwork fraud and money laundering-style operations.
- Was sentenced to 40 years, though he is appealing.
The Kingston Group / Davis County Cooperative Society
- A secretive, polygamous fundamentalist Mormon sect also known as the Order or Kingston Clan.
- Described by escaped members and advocacy groups as highly abusive, racist, incestuous, and exploitative.
- Operates businesses and finances through a strict hierarchy and internal control of members’ money.
How the Fraud Worked
The Biofuel Scheme
- Washakie Renewable Energy claimed to produce biodiesel and collect federal tax subsidies meant to encourage clean energy.
- The business exploited loopholes and weak oversight: fake paperwork, inflated claims, and minimal verification.
- Instead of moving fuel as claimed, the operation increasingly relied on paperwork that made shipments and production look real.
Why It Grew So Large
- Federal green-energy subsidies were highly lucrative and comparatively easy to game.
- The scheme expanded through a network of helpers, including logistics people, insiders, and family members tied to the Kingston group.
- A major part of the fraud involved claiming subsidies on fuel that was stranded, nonexistent, or not actually processed as represented.
How It Unraveled
Inside Help and the IRS Raid
- A mysterious insider tipped Jacob off about an upcoming IRS raid, giving the company time to scrub offices and destroy evidence.
- Investigators still recovered a crucial hard drive with about four terabytes of financial data.
- That data helped prove the scale of the fraud and connect the money trail.
Cooperation and Flip Witnesses
- Daryl Leone, a logistics figure involved in moving the biodiesel, cooperated with federal investigators and helped build the case.
- Priscilla, a young woman brought into Jacob’s orbit through the Kingston group, also became a key witness after seeing the inner workings of the operation.
- Her testimony helped expose both the fraud and the coercive environment surrounding it.
Broader Corruption
The episode also widens the lens beyond the biofuel fraud:
- FBI agent Babak Broumand was convicted for bribery and leaking database information.
- Other law enforcement and intelligence-linked figures were implicated or discussed.
- Former CIA director James Woolsey was mentioned as a high-level figure associated with the broader network, though he was not indicted.
Main Takeaways
- Family, cult power, and crime overlapped. Jacob’s need for approval and status made him vulnerable to manipulation.
- Green-energy subsidies were an easy target. The case shows how weak oversight can make government incentives ripe for fraud.
- Charisma and greed fueled the operation. Levon’s mob-style personality and Jacob’s desire for recognition were a dangerous combination.
- The case was much bigger than one company. It exposed a broader network involving family members, insiders, corrupt officials, and potential national-security-adjacent figures.
- The fallout was severe. Jacob, Levon, and others received long prison terms, while the Kingston group faced financial and reputational damage.
Notable Closing Point
One of the episode’s sharpest observations is that this kind of scam is especially dangerous because it sits in a weakly policed corner of government policy: clean-energy incentives. The episode argues that, unlike traditional organized crime, these frauds often lack a robust law-enforcement apparatus watching them closely—making them a modern, highly lucrative form of organized crime.