FLDS-linked business settles lawsuit
 
By Ben Winslow
Deseret Morning News
 
A company with ties to the Fundamentalist LDS Church has settled a lawsuit filed by a man appointed by the courts to oversee the polygamous group's financial arm.

Newera Manufacturing Inc., formerly known as Western Precision Inc., reached a deal on Tuesday with Bruce Wisan, the court-appointed special fiduciary of the United Effort Plan (UEP) Trust. The manufacturing company has agreed to give up its building in Hildale for dismissal of the lawsuit.

According to a copy of the settlement given to the Deseret Morning News, the company said it believed it would have prevailed if the case had ever made it to trial, but given the company's move to Las Vegas and "the interests of WPI's customers in WPI's freedom from litigation," a settlement was more appropriate.

Wisan sued the company in 2005, claiming Western Precision got the land for only a fraction of what it is worth. Among the fiduciary's claims were breach of trust, fraudulent transfer and unjust enrichment. Wisan sought recovery of the property for the trust, the settlement agreement said.

In 2005, the court took control of the $110 million UEP Trust after allegations that FLDS leader Warren Jeffs and others were siphoning money from it, and the court placed Wisan in charge.

A judge in Salt Lake City's 3rd District Court recently signed an order reforming the UEP Trust. Jeffs is currently facing criminal charges in St. George's 5th District Court accusing him of rape as an accomplice, a first-degree felony.

As part of the deal, neither the company nor Wisan is allowed to comment on the settlement.

Western Precision recently changed its name to Newera Manufacturing and moved to Las Vegas. Many FLDS members who worked for the company have followed, leaving the polygamous border towns of Hildale, Utah, and Colorado City, Ariz.

E-mail: bwinslow@desnews.com
 
deseretnews.com
Originally published Friday, November 3, 2006
 
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