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The fiduciary in charge of Utah's polygamous trust is asking a judge to place a water utility into receivership, saying it has been funneling money to Warren Jeffs and the Fundamentalist Church of Jesus Christ of Latter-Day Saints.
The utility, Twin City Water Works, supplies water to Hildale, Utah, and Colorado City, Arizona, the longtime homes of the FLDS Church. A motion filed Tuesday with Utah 3rd District Court Judge Denise Lindberg asks that an independent receiver take charge of the utility.
Twin City Water has been suspected for years of overcharging water users and passing the proceeds on to the FLDS Church. The motion for receivership, filed by Bruce Wisan, the fiduciary for the United Effort Plan — a trust owning much of the property in Hildale and Colorado City — recites those old claims and offers new arguments.
Administrators of Twin City Water sat for depositions in December where, according to the motion and accompanying court documents, they professed no knowledge of water leases the utility has claimed to own and could offer no reason why so much of the utility's proceeds were sent to the FLDS Church.
"The water works is in shambles and they're sending the money to Warren Jeffs," said Jeff Shields, an attorney for the UEP.
The motion cites evidence presented in other proceedings concerning Twin City Water, including bank records showing the utility wrote check totaling $145,103.82 to the "Bishop's Storehouse" from January 2002 through October 2009.
The UEP also cites a letter from Twin City Water administrator and current Colorado City Mayor Joseph Allred 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.
"I seek counsel on whether or not to continue paying some home bills from the company funds," Allred wrote.
Last month the UEP filed a lawsuit seeking to prevent Twin City Water from any further pumping. 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.
It is not clear when Lindberg will rule on either the lawsuit or the receivership.
The receivership, if approved by Lindberg, would be similar to how Utah took control of the UEP. Then-Utah Attorney General Mark Shurtleff in 2005 was concerned that Jeffs and the UEP was not responding to lawsuits and that the trust was being mismanaged and used to aid Jeffs in committing crimes.
Taking over the UEP has meant years of litigation struggles to get Jeffs' followers to cooperate with the people running the trust. The Utah Legislature in 2013 loaned the UEP $5.69 million to pay debts. The UEP repaid $4 million the following year, but taxpayers paid the balance.
The UEP's revenues have improved since then as it has been able to sell commercial and agricultural land. The attorneys general for Utah and Arizona are likely to weigh in on the proposal to put Twin City Water into receivership.
Shields on Wednesday clarified the UEP is not seeking to be in control of Twin City Water. The UEP wants another court-appointed party — preferably someone with experience in water distribution — to operate the utility.
Shields anticipates resistance to Utah taking control of another entity affiliated with the FLDS.
"People are going to say, 'That's taking control of our systems,' " Shields said, "and all I have to say is, 'Look at the facts, man.' "
Dismissal sought in Arizona lawsuit
In a separate case in federal court in Phoenix, the towns of Hildale and Colorado City are asking a judge to dismiss a lawsuit filed by the U.S. Department of Justice.
The Justice Department sued the towns in 2012 on allegations they refuse to provide water and related services to people who are not FLDS or who don't follow Jeffs. The dismissal motion includes deposition excerpts from multiple people who no longer follow Jeffs who say they have been able to obtain culinary water connections.
The dismissal motion also contends any orders against the towns would be redundant since Hildale and Colorado City are already under a federal judge's order not to discriminate. That order was issued last year after Ron and Jinjer Cooke won a discrimination lawsuit in a Phoenix trial. The Cookes later settled the case for $3 million.
If a judge dismisses the Department of Justice lawsuit, it could moot an appeal the towns have filed with the U.S. 9th Circuit Court of Appeals. The towns have appealed a judge's ruling saying town officials must answer questions about the workings of the FLDS Church.
Hamilton said it is OK for the Justice Department to ask his clients what church they belong to, but the questions have gone deeper and infringed on First Amendment rights.
Lawyers for the government in depositions have asked Hildale and Colorado City officials if they belong to the United Order — Jeffs' subset for his elite and worthy followers — and who else belongs to the United Order.
"You've had some very painful depositions where people were having to talk about their doubts, their questions, they're religious beliefs," said Blake Hamilton, an attorney for HIldale.
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