Polygamist sect gets millions from U.S. governmentBy Jack Douglas Jr. | McClatchy Newspapers
Posted on Saturday, April 12, 2008 FT. WORTH, Tex. -- American taxpayers have unwittingly helped finance a polygamist sect that is now the focus of a massive child abuse investigation in West Texas, with a business tied to the group receiving a nearly $1 million loan from the federal government and $1.2 million in military contracts. The ability of the Fundamentalist Church of Jesus Christ of Latter Day Saints, or FLDS, to operate and grow is largely dependent on huge contributions from its members and revenue from the businesses they control, according to a former accountant for the church, and government officials in Utah and Arizona, where the sect is primarily based.
One of those businesses, NewEra Manufacturing in Las Vegas, has been awarded more than $1.2 million in federal government contracts, with most of the money coming in recent years from the Defense Department for wheel and brake components for military aircraft. A large portion of the awards were preferential no-bid or "sole source" contracts because of the company's classification as a small business, according to online databases that track federal government appropriations. NewEra, previously known as Western Precision Inc. and located in Hildale, Utah, also received a $900,000 loan in 2005 from the federal Small Business Administration, the data show.
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John Nielsen, who worked for the company when it was Western Precision in Hildale, said in a 2005 affidavit that he and other FLDS members were made to work for little or no wages, even as the company was bringing in lucrative government contracts and other work. At the same time, $50,000 to $100,000 in company profits were going each month to FLDS "and/or" Jeffs, Nielsen said in the affidavit, filed as part of a civil lawsuit. He said he and other sect members thought their working for free or for extremely low wages would bring them redemption. Instead, Nielsen said in the affidavit, he was found to be "wanting" by the sect's leadership, ordered off the property and separated from his five young children and his wife. She was "reassigned" to another man, becoming the fourth of his six wives.
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Although Jeffs is now behind bars, sect members still consider him their leader and prophet, said Bruce Wisan, a nonmember appointed by the state of Utah to replace Jeffs as manager of a the FLDS' trust. Established in 1942 to "preserve and advance the religious doctrines" of the church, it is now
estimated to be worth between $100 million and $150 million. Under Jeffs' direction, Wisan said, sect households are required to tithe at least 10 percent of their gross income to the church, plus an extra $1,000 a month.
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