FLDS fiduciary defends cow sale decision
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A fiduciary overseeing a property trust once controlled by a polygamous sect says he acted properly in selling some cows to raise money for the cash-strapped United Effort Plan Trust.

In a court document filed Wednesday, attorneys for Bruce R. Wisan ask 3rd District Judge Denise Lindberg to deny a complaint about the sale filed by sect members. They contend the sale was done in bad faith during negotiations -- which included return of Harker Farm and its assets to the Fundamentalist Church of Jesus Christ of Latter Day Saints (FLDS) -- to settle litigation involving the trust.

They also contend the sale could imperil the future success of the dairy farm and question the price put on the cows.

Wisan's attorneys say they entered discussions to sell the cows to Jonathan and Hyrum Harker, who have been operating the farm and wanted to buy it from the trust, in May 2009. The deal provided $360,000 for the trust, which at the time had debts of about $3 million, and had tax benefits for the Harkers.

"With the liquidity crisis faced by the Trust, it makes perfect sense to sell non-essential cattle in order to gain funds necessary for the continued survival of the trust," it states.

The sale proceeded on June 2, and Wisan's attorneys say it contained specific clauses that ensure the FLDS farm operation would not be impeded by the transaction - --- including a provision that allows for the cattle to be repurchased at the sale price.

The filing also says that under previous court orders, the fiduciary is not required to provide notice of sales involving less than $500,000 of property.

"Given the history of attacks designed to sabotage prior attempts to sell property, the fiduciary deemed it unwise to endanger the sale by providing prior notice," the document states.

Wisan's attorneys say they have not received a court-ordered payment of $192,600 in occupancy fees which was due on June 15 because the sect has asked the Utah Attorney General's Office to hold the payment. The sect also failed to make a payment of $64,200 in occupancy fees that was due July 1.

The document also notes that the trust may need to sell all of the farm's cattle by the end of the year because of the trust's cash crisis and the downturn in the dairy business nationwide.

Polygamy » The sect cries foul because it wasn't notified of the transaction.
 
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