This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Where does Warren Jeffs and his followers get the money for ranches, cars, lawyers and other items?

For years, it's been alleged a lot of money was flowing through the water utility in Hildale, Utah, and Colorado City, Ariz.

That utility is called Twin City Water Works, and it's the defendant in a lawsuit filed this month by the United Effort Plan.

The UEP is the trust the state of Utah took over in 2005. It owns much of the property in Hildale and Colorado City, and — according to the lawsuit — ground water underneath the towns.

The lawsuit contends Twin City Water has agreements to sell water to Hildale and Colorado City via "unrecorded leases" it has with the UEP.

But UEP lawyers say there are no such leases and never have been.

The lawsuit claims:

"Between January 2002 through October 2009, from the proceeds of sale of UEP's groundwater, TCWW has paid approximately $4.3 million to third party businesses and individuals, at least half of which sum was used for personal expenses of members of TCWW and was made in donations to members of and companies related to the Fundamentalist Church of Jesus Christ of Latter Day Saints."

The lawsuit, filed with Utah 3rd District Court Judge Denise Lindberg, who oversees the state's control of the UEP, asks for an injunction preventing Twin City Water from any further pumping and sales. Instead, the UEP proposes to sell water to Hildale and Colorado City "at reasonable rates."

The trust also wants damages "in excess of" $300,000.

Twin City Water has not filed a response to the lawsuit. Former Twin City Water administrator and current Colorado City Mayor Joseph Allred had the chance to address some issues earlier this year at the civil trial in Phoenix in which the utility was a defendant. Instead, Allred cited his Fifth Amendment rights and declined to answer.

Plaintiffs attorneys wanted to ask Allred about a letter he sent to Jeffs. It was dated April 23, 2006, at which time Jeffs was one of the most wanted fugitives in the country.

Allred described Twin City Water and how some revenues were going to the FLDS Church and he was using some revenues to pay his family's bills, including phone bills, car payments and utilities. Allred described how some Twin City Water revenues were going to the FLDS Church, and that he was using some revenues to pay his family's bills, including phone bills, car payments and utilities.

"I seek counsel on whether or not to continue paying some home bills from the company funds," Allred wrote.

Twin City Water lists offices in both Hildale and Colorado City. In 2010, multiple news outlets reported the Utah and Arizona attorneys general were investigating Twin City Water. That investigation apparently didn't produce any criminal charges.

But the Arizona Attorney General did point out some irregularities about Twin City Water in a federal court filing related to the Phoenix trial earlier this year. According to the filing:

"...compelling evidence, including the letters of current Colorado City Mayor Joseph Allred, confirm that the joint culinary water system has been used for many years to funnel large amounts of money to the FLDS Church or to personal, non-Twin City Water Works uses approved by FLDS Church leaders."

Twitter: @natecarlisle