Wisan rejects deal to return assets to FLDS

A court-appointed accountant will not back a settlement proposal that gives the majority of a property trust's assets back to a polygamous church run by Warren Jeffs.

Court papers filed late Tuesday by attorneys for Bruce Wisan say the proposal violates a court order that requires the United Effort Plan Trust to benefit individuals, not the Fundamentalist LDS Church. The order also requires the trust to be religiously neutral in providing for beneficiaries.

"The present proposal would be objectionable because it is so one-sided. Under the proposal, nearly every category of assets is to be transferred 100 percent directly to the FLDS Church," attorneys Jeff and Zach Shields wrote.

The trust is an arm of the FLDS Church. Valued at more than $110 million, the trust holds most of the land and homes in Hildale, Utah, and Colorado City, Ariz., and was founded in 1942 on a religious principal that calls for the communal sharing of assets for those who adhere to church teachings.

The Utah courts seized the trust in 2005 — and named Wisan its fiduciary — after allegations of mismanagement. Under Wisan's management, the trust became a secular entity.

The church sued to regain control of the trust last year, and settlement talks were initiated in November between the FLDS, Wisan and the attorneys general of Utah and Arizona.

A draft settlement proposal was submitted to 3rd District Judge Denise Lindberg on June 15 by the Utah Attorney General's Office.

It's unclear what Lindberg will do next, but ultimately only she can decide whether a settlement is fair.

The FLDS argue that church members "in good standing" make up the majority of trust beneficiaries. But Wisan objects to any settlement configuration that overwhelmingly benefits current members over former members who may have legitimate claims.

There are an estimated 10,000 FLDS members, but it's unclear how many people may have left the faith either voluntarily or through excommunication.

A central issue of settlement talks has been the distribution of property in the twin border towns, where church members do not hold deeds to their homes but live in houses assigned to them by a church bishop. Leaving the FLDS faith has historically meant abandoning any assets donated to the church and often cutting ties with family members who remain in the church.