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Starbucks Narrator
What's up, y'?
Autotrader Parent
All?
Starbucks Narrator
Summer's got a different tempo. Everything's a little looser, brighter. One plan turns into another. You hear something, you stay a little longer. Next thing you know, you're somewhere you didn't plan to be. It's those in between moments. That's where the ideas hit. Conversations stretch out. Little memories sneak up on you. Sometimes it's just about what's in your hand. That color. That chill. The new Tropical Butterfly Refresher from Starbucks. Guava and passion fruit flavors with mango pineapple flavored pearls. Yeah, that feels like summer before you even taste it. Funny how one small stop becomes the best part of the day. Start your summer rhythm with Starbucks. Try the new Tropical Butterfly Refresher from Starbucks.
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Redfin Narrator
you're listening to a podcast, so you're doing something else too. Like maybe scrolling home listings on Redfin, Saving places you like without thinking you'll get them. Because that's what house hunting has become. But Redfin isn't built for endless browsing. It's built to help you find and own a home. Redfin agents close twice as many deals as other agents, which means when you find a place you love, you've got a real shot at getting it. Redfin helps turn saved listings into real addresses. Get started@redfin.com Own the dream, bro.
Nissan Narrator 1
From the show last night to this drive. Why is it never chill?
Nissan Narrator 2
Because this is our life backstage on the road. It's loud, messy, real.
Nissan Narrator 3
And that's the best part. Whole crew, no plan, just moving.
Nissan Narrator 1
Good thing Nissan builds for that kind of chaos.
Nissan Narrator 2
Not just test tracks, real life scenes, late nights, road trips, all of it.
Nissan Narrator 3
That's why it holds up. Nissan was ranked number one in initial quality among mainstream brands by J.D. power.
Nissan Narrator 1
Yeah, you can tell.
Nissan Narrator 3
2026 Nissan Rogue. Built for what really happens for J.D.
Nissan Narrator 2
power. 2025 U.S. initial Quality Study Award information. Visit jdpower.com awards awards based on 2025 model year. Newer models may be shown.
Ryan Reynolds (Mint Mobile)
Ryan Reynolds here from Mint Mobile with a message for everyone paying Big wireless way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying. No judgments. But that's weird. Okay, one judgment anyway. Give it a try@mintmobile.com Switch upfront payment
Mint Mobile Disclaimer
of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price plan options available, taxes and fees extra. See full terms@mintmobile.com
Michelle McPhee (Host, Kingdom of Fraud)
novel. Hey Michelle here. I just wanted to give you a heads up. This is our last episode about Jacob and Lavon's fraud, but we've got three bonus episodes still to come. In them we'll cover the shocking network of corruption around this case, what life is like inside the order, and the thriving criminal underworld of the biofuel industry. So be sure to keep listening. All right, here we go. The final showdown. Over half a dozen federal agents and prosecutors are huddled in what they call their war room. Stacks of boxes and binders clutter the conference table. It's tense in there.
Tyler Hatcher (Federal Agent)
We're sitting as a team and we have a conversation about like, do we let them go? Are they coming back? Like, what do we do?
Michelle McPhee (Host, Kingdom of Fraud)
It's August 2018 and the federal investigation has been thrust into absolute chaos by Jacob Kingston.
Steven Washburn (Federal Agent/Prosecutor)
It popped up in our systems that he had bought this plane ticket to go from Salt Lake City to Turkey.
Michelle McPhee (Host, Kingdom of Fraud)
But Jacob hasn't just bought a ticket for himself. The system is showing tickets for his wife Sally, his sons and their wives too.
Tyler Hatcher (Federal Agent)
So we were like, hey, this is different. This one is definitely different. And my co case agents and I are like, if we let them go, they're never coming back.
Michelle McPhee (Host, Kingdom of Fraud)
Tyler Hatcher is certain Jacob is about to flee to Turkey, where he spent years stashing his ill gotten gains. But the problem is the feds are still trying to build their case.
Steven Washburn (Federal Agent/Prosecutor)
We still had a lot of questions, a lot of unknowns.
Michelle McPhee (Host, Kingdom of Fraud)
Author Ivancyk, one of the prosecutors knows that if they wait, they could still uncover more evidence. On the other hand, letting Jacob and his entire family fly off would be a massive gamble.
Steven Washburn (Federal Agent/Prosecutor)
We decided, okay, we can't take the risk that he's going to go to Turkey and never come back.
Michelle McPhee (Host, Kingdom of Fraud)
Everyone in the room agrees they're going to grab Jacob before he can get on that plane. In fact, they'll get him at the airport.
Steven Washburn (Federal Agent/Prosecutor)
That was part one, part two. We knew that if we got Jacob Kingston, but not Lavon Termingian, he would probably jet off to Turkey. And so we had to figure out a way to do an arrest of Levon Terming at the same time that we were arresting Jacob Kingston in.
Michelle McPhee (Host, Kingdom of Fraud)
But arresting Levon, that's a whole other story.
Stephen Washburn (Federal Agent/Prosecutor)
We were very concerned about going after Levan because he had security, and we didn't want to have security do anything crazy if we tried to arrest Levan.
Steven Washburn (Federal Agent/Prosecutor)
You have to remember, this guy travels around with armed bodyguards. He is a dangerous guy.
Michelle McPhee (Host, Kingdom of Fraud)
If there's a confrontation, things could get very ugly. The feds in this room need to come up with a ruse to separate Levan from his armed muscle. And they need a plan fast. Jacob Kingston's flight to Turkey is just days away. My name is Michelle McPhee, and from the teams at Novel and iHeart podcasts, this is Kingdom of Fraud, episode seven, Last Call. The days after the feds learned about Jacob's escape plan are frantic. In a frenzy, Tyler is applying for arrest warrants, coordinating with Salt Lake City airport officials about how to nab someone at a busy international terminal. And he's still trying to figure out how to arrest Levon. But sometimes the universe has a weird way of working. In the middle of all this mayhem, Tyler gets a call from another IRS agent out in la.
Tyler Hatcher (Federal Agent)
Hey, we got this weirdest thing. Lavon called in and he wants to come in and make a report about somebody. I was like, oh, perfect.
Oleg Pobereko (IRS Special Agent)
What?
Michelle McPhee (Host, Kingdom of Fraud)
Tyler doesn't know. Levan is apoplectic about his former right hand man, a fellow Armenian who he went into business with. Levon claims that this dude has been skimming millions of dollars off the top of his companies, that this guy even stole a private jet from him. And now Levon is pissed off enough that he's willing to walk into a federal building to report this crook to the irs. Even though he knows full well he and Jacob are under the microscope. Tyler couldn't give two shits about Lavon's personal beef. But this kind of serendipity. Lavon is about to make their jobs easy. The agents in LA schedule a meeting with Lavon on the exact day of Jacob's flight to Turkey. Thursday afternoon, August 23, 2018. The agent waiting to arrest Levan is Oleg Pobereko. He's a special agent with the IRS like Tyler, and also a member of the Eurasian Organized Crime Task Force. That makes him an expert in transnational Criminals from former Soviet countries like Armenia.
Oleg Pobereko (IRS Special Agent, speaking)
Laman was always on our radar. We knew who is who in the streets.
Michelle McPhee (Host, Kingdom of Fraud)
Now Oleg's waiting for him on the fifth floor of the IRS building in Los Angeles. Levan is exactly the sort of criminal Oleg lives to take down.
Oleg Pobereko (IRS Special Agent, speaking)
I'm originally from Ukraine, then I moved to the United States, and I decided, like, I should work for the government because of I always wanted to fight the corruption in Ukraine and post Soviet Union regions. There was a lot of corruptions there, and this is one of the reasons why I left.
Michelle McPhee (Host, Kingdom of Fraud)
On the afternoon of the fateful meeting, Levan arrives at the IRS building in his signature black suv.
Oleg Pobereko (IRS Special Agent, speaking)
It was a bulletproof vehicle. Like, you could tell because the windows were thick.
Michelle McPhee (Host, Kingdom of Fraud)
Levan steps out. His bodyguards watch from the vehicle.
Oleg Pobereko (IRS Special Agent, speaking)
I'm pretty sure they were armed. He left his bodyguards in the car. They were waiting for him at the gas station right here in the corner.
Michelle McPhee (Host, Kingdom of Fraud)
To get into the federal building, Levan has to go through a security check. Obviously no weapons allowed, and definitely no bodyguards. He walks in, pulls off his couture belt, and unstraps his luxury watch. It's intricately designed. The dial is custom made to look like a golden oil rig. He gets waved through the metal detector and rides up to the fifth floor in the elevator, where he's greeted by Oleg.
Oleg Pobereko (IRS Special Agent, speaking)
We sat down with him. I mean, you can tell the person is rich the way he handles himself. He's a cologne you can smell entire room with smell cologne. He was happy, he was smiling. He was talking to us. Looks like he was trying to work us up. He's very charming. The guy knows how to talk to people.
Michelle McPhee (Host, Kingdom of Fraud)
Levan launches into the dirt he wants to give them on his thieving business partner. He has a litany of complaints.
Oleg Pobereko (IRS Special Agent, speaking)
Levan provided some information.
Michelle McPhee (Host, Kingdom of Fraud)
What was the information?
Oleg Pobereko (IRS Special Agent, speaking)
That's his partner trying to screw him on a plane deal.
Michelle McPhee (Host, Kingdom of Fraud)
That's the jet theft. Levan is alleging. But Oleg isn't really paying attention to any of this.
Oleg Pobereko (IRS Special Agent, speaking)
Our agenda was not to listen to him. Our agenda was to put handcuffs on him. We talked to him for about 30 to 40 minutes.
Michelle McPhee (Host, Kingdom of Fraud)
Lavon finishes his rant. And then it's finally time. Oleg stands up and says, thank you
Oleg Pobereko (IRS Special Agent, speaking)
so much for information, Lavon. That was great talking to you, but by the way, I can't let you go. What do you mean you can let me go? I can't have a rest warrant for you. And he was like, laughing. Are you joking? It's like, no, this is not a joke. I'm that serious. I have a rest warrant for you. And I showed it to him.
Michelle McPhee (Host, Kingdom of Fraud)
Levan is stunned.
Oleg Pobereko (IRS Special Agent, speaking)
He went from, like a happy face to. It was like from 100% all the way to the zero.
Michelle McPhee (Host, Kingdom of Fraud)
Oleg tells Levan he's under arrest and walks him through the building to an awaiting fed vehicle. Instead of being angry, Oleg says, Levan starts chattering in his signature charming way.
Oleg Pobereko (IRS Special Agent, speaking)
You can tell, like he was trying to work you up. Like, I felt it. I felt it, like, right away. I felt his manipulation. He was really friendly. He was trying to control, and he was trying to get as much information as possible.
Michelle McPhee (Host, Kingdom of Fraud)
But by now, it's late in the day. Oleg just wants to get Levan booked and fingerprinted. He pulls out of the parking lot and joins the thousands of other cars caught in the early evening rush hour traffic to get Levon into a cell. It was going to be a long night.
Oleg Pobereko (IRS Special Agent, speaking)
He was getting hungry a little bit. You have to feed him. You have to give him some food and ask him, what do you want? You want a sandwich? What would you like? And he said, no, just give me the Armenian pastries. Okay. So I went literally right down with Armenian bakery, and I got him Armenian pastries.
Michelle McPhee (Host, Kingdom of Fraud)
I love this scene. Oleg and another agent sharing Armenian pastries with a suspected billion dollar fraudster, one with a terrifying reputation. But Oleg and his partner still can't fully relax. Not until they get Levan in a cell. They know all about his boys. They've seen the armed bodyguards. There's always a chance someone tries something stupid.
Oleg Pobereko (IRS Special Agent, speaking)
We look around, make sure nobody's following us. Definitely your adrenaline was running.
Michelle McPhee (Host, Kingdom of Fraud)
But none of Lavon's pals come out of the shadows. By the time Oleg finally books Lavon into jail, it's dark. So he drives home to spend the evening with his family. In the end, it really was that simple with Lavon. But hundreds of miles away in Utah, things haven't gone so smoothly with Jacob's arrest. Jenny Kingston and her family, including her husband Jacob Jr. All pile into a minivan. They're on their way to Salt Lake City airport to fly to Turkey.
Jenny Kingston (Family Member)
It was just going to be a vacation. Like, we'll be there just for a week and then come back.
Michelle McPhee (Host, Kingdom of Fraud)
It might feel like an escape from the suffocating reality of her life inside the Kingston mansion. Over the last few years, Jenny says her marriage to Jacob Jr. Has gone about as badly as it could have.
Jenny Kingston (Family Member)
We were always fighting. He played a lot of video games and would lie about being in school or work. Our house was always trashed. Because he would never help. And then I would be like, well, if you're not going to do anything, then I'm not going to do anything. And then it just was always trashed.
Michelle McPhee (Host, Kingdom of Fraud)
Things are even tougher once they have kids, Twin boys. They live in the guest house of the mansion Lavon had picked out years earlier. Jenny alleges Jacob Jr becomes abusive physically
Jenny Kingston (Family Member)
and all the other kinds.
Michelle McPhee (Host, Kingdom of Fraud)
We reached out to Jacob Kingston Jr. For comment about these allegations, but we haven't heard back from him. It's important to note he hasn't been charged with abuse or violent conduct. But this vacation to Turkey fits into what has become a pattern of Jenny's marriage. She says that her father in law has been organizing trips like this as a way to keep her marriage together, giving the couple a change of scenery.
Jenny Kingston (Family Member)
When it would get too bad, then Jacob would just like, he'd be like, I think we need another trip, take a break and go somewhere. So we like went to Oregon, went
Michelle McPhee (Host, Kingdom of Fraud)
to California, and now Turkey without the kids. But getting into that minivan. Jenny is in the dark about her father in law's real intentions. On the other side of town, special agents Tyler Hatcher, Steven Washburn and their team are spread across Salt Lake City airport waiting for the Kingstons.
Tyler Hatcher (Federal Agent)
We knew their flight times, we knew the flight details, we knew what gate it was.
Michelle McPhee (Host, Kingdom of Fraud)
Tyler and Steven position themselves right by the gate. Tyler is also in touch with the second team sitting on the Kingston mansion.
Tyler Hatcher (Federal Agent)
We set up surveillance at the house trying to see when they were going to leave just so we could make sure that they go to the airport. So the car leaves from their house.
Michelle McPhee (Host, Kingdom of Fraud)
But the agents in a follow car have a problem.
Tyler Hatcher (Federal Agent)
We can't verify who's in the car.
Michelle McPhee (Host, Kingdom of Fraud)
They stay on the minivan all the way to the airport. Then the situation gets even more confusing.
Tyler Hatcher (Federal Agent)
Car pulls into the parking garage, they lose him. I'm in the airport on the radio with my earpiece in, hey, we lost him. I'm like, you guys have got to be kidding me. So I pull out from the gate area and I go up to departures just looking for the family because I know what Sally looks like and I know what the kids look like. So I'm looking around and funny enough, I bump into one of my neighbors and they start talking to me. Me, I'm hearing chatter. My ear trying to like, be polite and like, hey, I can't talk right now. While not letting them know why I was at the airport.
Michelle McPhee (Host, Kingdom of Fraud)
Then an agent tells Tyler, hey, we
Tyler Hatcher (Federal Agent)
think we see them.
Michelle McPhee (Host, Kingdom of Fraud)
They've finally got eyes on the family. They can see Sally, Jacob Jr. Jenny, another one of Jacob's sons and his wife.
Tyler Hatcher (Federal Agent)
But we notice that Jacob wasn't with them. So it's Sally and the kids. And I'm like, where's Jacob? We haven't seen him. I'm like, what do you mean you haven't seen him? Nobody saw him from the house. Like, we didn't see him get out of the car. They're like, nope, we haven't seen him. I'm like, you gotta be kidding me.
Michelle McPhee (Host, Kingdom of Fraud)
Tyler heads back to the gate, waiting to see if Jacob shows up. Steven stays on the family.
Stephen Washburn (Federal Agent/Prosecutor)
I follow through security behind Sally and her kids and waited for him and waited for him. No Jacob.
Tyler Hatcher (Federal Agent)
I'm just hovering around the gate. Sally and the kids roll up. They take their seats. You know, they're checked in. No big deal. Jacob still hasn't shown up. And I'm like, guys, what do we do?
Stephen Washburn (Federal Agent/Prosecutor)
Is he just not going to go? Is he already there? Like, how? What's going on?
Tyler Hatcher (Federal Agent)
Literally, they're calling to start loading passengers, and Sally's still sitting there. The airline literally does last call. Like, we're gonna shut the doors. And Jacob comes walking up. And I was like, oh, thank God.
Michelle McPhee (Host, Kingdom of Fraud)
It turns out this entire time, Jacob wasn't even in Utah. He's been in Texas, and his plane just landed in Salt Lake. Whether he planned this specifically to evade capture or whether it's a coincidence doesn't matter. The feds have him right where they want him.
Jenny Kingston (Family Member)
We walk up to the gate.
Michelle McPhee (Host, Kingdom of Fraud)
Jenny is totally unaware of the feds swarming all around her.
Jenny Kingston (Family Member)
We are standing in line to get on the plane, and Jacob Sr. Went first. As soon as he handed them his ticket to scan, two men came up to him and started putting him in handcuffs.
Stephen Washburn (Federal Agent/Prosecutor)
We escorted him in handcuffs to the airport.
Jenny Kingston (Family Member)
I just remember them, like, walking past me with Jacob in handcuffs, and he didn't look at us at all. He just was, like, looking down.
Tyler Hatcher (Federal Agent)
He was pretty defeated at that point. I mean, he was so close to his exit strategy. And we picked him up right before he was able to get on that plane.
Jenny Kingston (Family Member)
Sally was freaking out. They just didn't know that it was going to happen. So she's like calling Lavon, calling Baran, calling everyone that she knew to ask, like, what's going on? They just arrested him.
Michelle McPhee (Host, Kingdom of Fraud)
But Sally obviously can't reach Lavon. He's dealing with his own situation. The Kingstons wait around helpless, and then the gate closed.
Jenny Kingston (Family Member)
We were just standing there still with all our suitcases, not knowing what's going on. And then eventually, then Sally was like, okay, let's just go home until we figure this out. So we just drove back home.
Michelle McPhee (Host, Kingdom of Fraud)
Meanwhile, Jacob is being driven to jail. After spending tens of millions of dollars for protection from this very thing. None of Levon's boys show up to save him. Now the investigators next challenge begins.
Steven Washburn (Federal Agent/Prosecutor)
There were very few people who truly knew everything about the fraud. Jacob Kingston, his brother Isaiah Kingston and Lavon Terminjin. None of those people were giving us information as we were building the case. You're trying to figure out at what point do I have enough pieces that I can convince a jury of 12 people beyond a reasonable doubt that this billion dollar fraud was committed.
Michelle McPhee (Host, Kingdom of Fraud)
Arthur and his team know that there is one way to better their odds in a trial. Somehow they have to break down the fraud central alliance, Jacob and Laban, and persuade one to turn on the other. That's coming up after the break.
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Nissan Narrator 1
From the show last night to this drive, why is it never chill?
Nissan Narrator 2
Because this is our live backstage on the road. It's loud, messy, real.
Nissan Narrator 3
And that's the best part. Whole crew, no plan, just moving.
Nissan Narrator 1
Good thing. Nissan builds for that kind of chaos.
Nissan Narrator 2
Not just test tracks, real life scenes, late nights, road trips, all of it.
Nissan Narrator 3
That's why it holds up. Nissan was ranked number one in initial quality among mainstream brands by J.D. power.
Nissan Narrator 1
Yeah, you can tell.
Nissan Narrator 3
2026 Nissan Rogue built for what really happens for J.D.
Nissan Narrator 2
power. 2025 US Initial Quality Study Award information visit jdpower.com awards awards based on 2025 model year, newer models may be shown.
Ryan Reynolds (Mint Mobile)
Ryan Reynolds here from Mint Mobile with a message for everyone paying big wireless way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy Overpaying. No judgments. But that's weird. Okay, one judgment anyway. Give it a try@mintmobile.com Switch upfront payment
Mint Mobile Disclaimer
of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price plan options available. Tax extra. See full terms@mintmobile.com a burst pipe, a
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Autotrader Parent
Are you really buying a car online on Autotrader right now?
Oleg Pobereko (IRS Special Agent)
Really?
Autotrader Parent
At a playground?
Oleg Pobereko (IRS Special Agent)
Yeah, really? Look at these listings from dealers.
Autotrader Parent
Wow, your search can really get that specific.
Oleg Pobereko (IRS Special Agent)
Really?
Autotrader Parent
And you just put in your info and boom. Cars in your budget.
Oleg Pobereko (IRS Special Agent)
Mom needs a second. Honey.
Autotrader Parent
You can really have it delivered.
Oleg Pobereko (IRS Special Agent)
Really? Or I can pick it up at the dealership. One sec, sweetie. Mommy's buying a car.
Autotrader Parent
I think your kid is walking up the slide.
Mint Mobile Disclaimer
Kyle.
Steven Washburn (Federal Agent/Prosecutor)
Again?
Oleg Pobereko (IRS Special Agent)
Really? Auto trader. Buy your car online. Really?
Michelle McPhee (Host, Kingdom of Fraud)
Jacob is shitting bricks in a Salt Lake City jail. He's in one of those holding cells crowded with all kinds of miscreants. One day, a new celly walks in. Jacob is shocked to see it's Levant. He's been flown from LA to Salt Lake City to await trial. The meeting is tense. Jacob is glowering at Lavon, the man he previously thought was his friend, but no longer.
Stephen Washburn (Federal Agent/Prosecutor)
Jacob confronted Levan and was upset with him about this whole situation they're in.
Michelle McPhee (Host, Kingdom of Fraud)
Lavon is hardly the sort of man to eat shit from someone like Jacob. It gets ugly. Lavon blames his family, the Kingstons, for landing them behind bars. For once, Jacob explodes back.
Steven Washburn (Federal Agent/Prosecutor)
Jacob told Lavon, you're ruining my life.
Michelle McPhee (Host, Kingdom of Fraud)
The chasm between them has opened up in that cell. A rift that the prosecutors will want to exploit.
Steven Washburn (Federal Agent/Prosecutor)
I've been living with this case for years and years and, you know, had kind of gotten to know these guys through the text messages and their emails and the accounts from witnesses.
Michelle McPhee (Host, Kingdom of Fraud)
Despite that, Arthur and the team know very little about the intricacies of Jacob and Lavon's relationship. How they first connected, the real power dynamics between them. In other words, they don't know the story. And juries need A narrative, especially in a case like this one with a convoluted paper trail and no clear victim. On the day Jacob and Lavon got arrested, the feds also scooped up Jacob's brother Isaiah. And not long after, they even arrest their mom, Rachel, and Jacob's wife, Sally. This makes the prosecution really complicated. There are now multiple defendants facing a myriad of federal charges, all in one trial. Stephen Washburn is working with the prosecutors to build out the cases and present a clear story.
Stephen Washburn (Federal Agent/Prosecutor)
It's mayhem. And just I remember dreading that feeling. How are we going to keep this story from getting muddled and keep Lavon from getting lost? Because it would be so easy for him to try and point the fingers at everyone else. And everyone else is pointing the fingers.
Michelle McPhee (Host, Kingdom of Fraud)
They need to avoid confusing the jury.
Steven Washburn (Federal Agent/Prosecutor)
We really felt like we had overwhelming evidence against these guys.
Michelle McPhee (Host, Kingdom of Fraud)
So what if they change strategy and use all that evidence as leverage to get Jacob or Lavon to turn on each other?
Steven Washburn (Federal Agent/Prosecutor)
We offered Lavon the opportunity to plead guilty, but he was not seriously interested.
Michelle McPhee (Host, Kingdom of Fraud)
Lavon is clearly not going to roll. So that leaves them with just one other option. Jacob.
Steven Washburn (Federal Agent/Prosecutor)
Jacob hired top notch lawyers. These guys reviewed the evidence, and it's pretty clear they went to Jacob Kingston and said, you're toast. I mean, they've got mountains of evidence against you.
Stephen Washburn (Federal Agent/Prosecutor)
Jacob could feel it bearing down on him. He'd almost been in jail for a year at that point.
Michelle McPhee (Host, Kingdom of Fraud)
Sitting in his cell, Jacob has to weigh his options. He could maintain his innocence and stick by Levant, or he could plead guilty and cooperate with the government for a lighter sentence by testifying against Lavon, a man he once considered family. A man who, it seems, Jacob now
Steven Washburn (Federal Agent/Prosecutor)
fears he truly believed that the umbrella of protection, that the boys was real. He was terrified that Lavon Terming was going to send someone to take care of him, that one of our agents was secretly working for Lavon.
Michelle McPhee (Host, Kingdom of Fraud)
Either way, he's screwed. But he decides to play the prosecutor's game.
Steven Washburn (Federal Agent/Prosecutor)
We were kind of going back and forth with his attorneys on what a guilty plea might look like. And those were all kind of hopeful signs. At the same time, we are worried that this is a distraction, because if he's not going to plead guilty, every hour that we spend working on this guilty plea is an hour that we don't have to build our case.
Michelle McPhee (Host, Kingdom of Fraud)
Until the very last second, there's a chance Jacob could back out. So when he steps into the courtroom for the hearing where he's supposed to plead guilty, everyone holds their breath.
Steven Washburn (Federal Agent/Prosecutor)
When he finally pleads guilty in front of the judge. That's a huge moment. I mean, he pled guilty to a billion dollar attempted fraud against American taxpayers.
Michelle McPhee (Host, Kingdom of Fraud)
Jacob's plea isn't a get out of jail free card. He's going to prison. But he might be able to get out in time to see his grandkids grow up. Soon. Jacob's first wife Sally, his brother Isaiah, and their mom Rachel all make their own deals to cooperate against Levon. The feds hope they'll help them get their great white whale. Jacob will be the star witness.
Steven Washburn (Federal Agent/Prosecutor)
The first time we interviewed him, it was in a secure government building. He was transported in this armored vehicle, which in retrospect, I think it spooked him a little bit.
Michelle McPhee (Host, Kingdom of Fraud)
All this security, it just intensifies Jacob's fear that Levan is coming after him. Arthur and Steven assuage him that he's safe as he starts to spill his guts.
Steven Washburn (Federal Agent/Prosecutor)
I was curious to meet the guy, to kind of see what he was actually like, to understand him better. And then you meet Jacob Kingston, and he's kind of underwhelming. He is this shy engineer who has a lot of trouble recalling events, who's not particularly eloquent or good with his words.
Michelle McPhee (Host, Kingdom of Fraud)
Jacob's story is that it was Levan who controlled the entire operation, which was the agent's system suspicion. But remember, Lavon's name is barely on any of the paperwork. The case will come down to Jacob's word against Lavon's. Jacob also reveals the vast network of dirty law enforcement surrounding Lavon. This whole time, Jacob thinks he's been paying them for protection, but it's becoming pretty clear that they haven't done very much to keep Jacob out of jail. Even the feds can see that Jacob is a little delusional about this so called umbrella of protection.
Steven Washburn (Federal Agent/Prosecutor)
It was very murky, but he understood it to involve high ranking federal law enforcement officials, FBI officials, maybe even the CIA. And they were apparently very connected to Levon Terming and Baron Corkmaz.
Michelle McPhee (Host, Kingdom of Fraud)
Here's the crazy thing. There was a bigwig FBI agent convicted in connection with this case. There was a dirty Homeland Security agent, not to mention the corrupt Glendale police detective. And Baran, the Turkish businessman allegedly helping Jacob and Levon launder the fraud money does have a reported relationship with former CIA director James Woolsey. It seems that with all of these US Intelligence connections in the mix, Jacob became an easy mark for a shakedown. But it becomes clear no one is coming to save him or Levon. It's important to note that Baron Korkmatz has been indicted on charges of money laundering and wire fraud by federal prosecutors, but he still hasn't been tried and he has pleaded not guilty to all charges. We've tried to reach him for comment, but he hasn't responded. As I record this, he's a free man and no trial date has been set. Judging from his very active LinkedIn and X presence, he lives in New York City. Baron Korkmatz is a frequent topic of discussion between Jacob and Steven Washburn, who spends dozens of hours going down memory lane with him, rehashing the last 10 years of his life. Jacob opened up to him more than anyone else I've spoken to.
Stephen Washburn (Federal Agent/Prosecutor)
I think he was just ready to be done with it all. He had almost a feeling of relief when we met with him. And, yeah, there were some points where it felt like he was upset with Levan and. But, you know, he's upset with himself mostly. Once it all got before him and hit him, the amount of fraud he committed, the amount of lies he said, his facade was crumbled down. He, I think, just looked at himself and like, I'm a bad, terrible person. I'm just a total scumbag.
Michelle McPhee (Host, Kingdom of Fraud)
After many months of extracting Jacob's version of the conspiracy, which puts the blame squarely at Levan's feet, the feds are finally ready for his trial. The United States vs. Lev Aslin Dermen is scheduled for January 2020 in Salt Lake City. After the jury has been seated, the government is ready to present their key cooperator. Jacob lumbers into the courtroom. He takes his seat on the witness stand, looking down at Levon. And for the next six days, Jacob repeatedly throws his former friend and protector under the bus. After the break, it's the end times.
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Nissan Narrator 1
From the show last night to this drive, why is it never chill?
Nissan Narrator 2
Because this is our life Backstage, on the road. It's loud, messy, real.
Nissan Narrator 3
And that's the best part. Whole crew, no plan, just moving.
Nissan Narrator 1
Good thing. Nissan builds for that kind of chaos.
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Not just test tracks, real life scenes, late nights, road trips, all of it.
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Oleg Pobereko (IRS Special Agent)
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Oleg Pobereko (IRS Special Agent)
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Michelle McPhee (Host, Kingdom of Fraud)
Jacob Kingston takes the stand against Levon for six full days, some of which you've heard during the show read by my producer, Jake. But look, the prosecutors know that as someone trying to save his own ass, Jacob's credibility is suspect.
Steven Washburn (Federal Agent/Prosecutor)
It is very reasonable for every single juror to have significant doubts about whether they can believe anything that Jacob Kingston says. And that's why throughout the trial, we painstakingly presented corroborating evidence in the form of testimony from other insiders, but also the defendant's own statements in videos and in text messages, bank records.
Michelle McPhee (Host, Kingdom of Fraud)
Lavon's defense hammers the obvious, arguing that it's Jacob's name on all the paperwork. While Lavon is barely mentioned, his theory
Steven Washburn (Federal Agent/Prosecutor)
of the case, as presented by his lawyers was that he was a buyer of biofuel from Jacob Kingston and that that was the extent of their relationship. And so to the extent Jacob Kingston was committing fraud, he knew nothing about it, had no involvement in it.
Michelle McPhee (Host, Kingdom of Fraud)
When I talked to Satara Kassim, one of Lavon's attorneys, she continues to maintain this narrative, and she continues to fight to prove Lavon's innocence. In fact, she says Lavon never even considered Jacob a friend.
Satara Kassim (Lavon's Attorney)
I don't think he thought about Jacob like that. He was a business partner in terms of their initial relationship, that Noel was buying fuel from Jacob, and then Jacob needed a place to invest in money that he had, and he made the introduction to Baron to him. I think that was really the scope of the relationship.
Michelle McPhee (Host, Kingdom of Fraud)
Friend or not. One thing is for sure, Jacob and his family spent a lot of time with Lavon. Jacob testified he was among the mourners at Levon's wife's funeral. Jenny Kingston told us he paid for her wedding on that yacht in Turkey. She also says Lavon and Baran came to stay with them in Utah often enough that she called them family. There are countless photos of Levon and Jacob together, hanging out in Turkey and Belize, standing next to various shiny, expensive vehicles posing in front of Lavon's private jet. In the end, though, it's down to the jury to decide whose story they buy.
Steven Washburn (Federal Agent/Prosecutor)
I felt pretty good that we were going to get a conviction.
Satara Kassim (Lavon's Attorney)
It was a perfect defense. The credibility of every single witness was really, really challenged. I mean, there were no credible witnesses left in this case.
Michelle McPhee (Host, Kingdom of Fraud)
The seven week trial culminates in March, just as the COVID pandemic erupts.
Steven Washburn (Federal Agent/Prosecutor)
There's, as you can imagine, a lot of antsy energy waiting for the final word from the jury on this.
Michelle McPhee (Host, Kingdom of Fraud)
In the end, jurors deliberate for two days. And then at 1:30pm on March 16, 2020, a verdict has been reached.
Steven Washburn (Federal Agent/Prosecutor)
The defendant comes in. He was sitting there looking pretty grave. The judge comes in. The jury foreman tells the judge that they have reached a verdict in hands over the jury form. And then the jury Verdict proceeds by count. The first count, conspiracy to commit male fraud, was the big count. And so when they said guilty, that was a huge sigh of relief.
Michelle McPhee (Host, Kingdom of Fraud)
It's guilty on all counts. Conspiracy to commit money laundering, Guilty. Concealment of money laundering, Guilty, guilty, guilty, guilty. It's a big win for the federal government.
Steven Washburn (Federal Agent/Prosecutor)
It's a huge relief and, you know, culmination of so much work. And at the same time, you know, the defendant is getting a verdict that is changing the course of their life.
Michelle McPhee (Host, Kingdom of Fraud)
Lavon could face decades in prison.
Satara Kassim (Lavon's Attorney)
I didn't really have much of a reaction. His son was crying. I kind of went after his son to comfort him. I was crying and I thought it was the end of the world. I just couldn't believe it.
Michelle McPhee (Host, Kingdom of Fraud)
By the time of their sentencing, which only happens years later, I'm already reporting on this story for LA Magazine. I fly out to Salt Lake City to be in the courtroom for the action. As Laban, Jacob and his family all find out their fates. It was especially fascinating to see Lavon in person. She really is wildly charismatic. At one point, I even saw a court officer approach the defense table and shake Levon's hand. The judge in this case was also riveting. She was almost too nice, even comforting to all of these suspects. I was thinking the whole time, these guys are just going to get slaps on the wrists. Then bam, she hits them hard. Sally gets six years in prison. Jacob's mom, Rachel, seven. Isaiah, Jacob's brother, 12 years. Jacob, even with his cooperation, is sentenced to 18 years in prison. But the judge saves her. Real ire for Lavon, the only one in the case that didn't cut a deal. He is hit with a 40 year sentence, which at his age could mean spending the rest of his life in prison. How is your client doing? Where is he now? Where is he being held?
Satara Kassim (Lavon's Attorney)
He's in Victorville. He's an older guy, so I don't think he's involved in any, you know, action in prison. I think he probably just sits there and watches tv, eats his commissary and reads books.
Michelle McPhee (Host, Kingdom of Fraud)
As I record this, Jacob is locked up in a high security federal prison in Tucson. He's due to be released in 2032, but returning home to his family and the order might be tricky because on the witness stand, he didn't just spill about Lavon. He detailed a lot of the inner workings of the order, including money, links between his company WRE and order linked businesses.
Andrew Robinson (Jacob's Half Brother)
I questioned if he cared about protecting the family.
Michelle McPhee (Host, Kingdom of Fraud)
Andrew Robinson, Jacob's half brother was still in the order during the trial.
Andrew Robinson (Jacob's Half Brother)
He didn't seem to care who he was going to throw under the bus because it seemed like he was just complying with whatever they want, which is what you're supposed to do. You're under oath.
Michelle McPhee (Host, Kingdom of Fraud)
Jacob claimed he gave $30 million from the scheme to the order, which they told us was payment for, quote, legitimate services or to repay money already loaned. Jacob also testified about using the fraud money to pay off his father's debt in the order, which prosecutors claim was $17 million. Jacob's dad, Daniel, didn't respond to our request for comment. Now, to be clear, the order was never charged with taking part in Jacob and Lavon's fraud. Neither was its leader, Paul Kingston, who wasn't arrested or implicated in this conspiracy. Stephen Washburn says that the order has stepped back from Jacob.
Stephen Washburn (Federal Agent/Prosecutor)
I think Jacob feels like he is a fall guy. When it all came crashing down, you know, he was left holding the bag and everyone else had walked out of the room.
Michelle McPhee (Host, Kingdom of Fraud)
In the end, Jacob is left without a single penny of the money he stole. He's essentially been excommunicated by his family. The order told us they find Jacob's actions, quote, repugnant, immoral, and completely contrary to their values. It can't be overstated. What should piss off every single one of us is how easy it was for these guys to get half a billion dollars of. And they aren't the only ones. In total, many billions of dollars have been lost to fraudsters in the renewable fuel space alone. Even the agents working this case couldn't believe what a shit show the industry was.
Stephen Washburn (Federal Agent/Prosecutor)
It's pretty obnoxious when I look at, like, how easy it was. It got to the point where, like, it was hard to wrap your head around the amount of money, to the point it became a joke. We're used to working, like, $10 million cases as a huge case, and now you're like, $10 million goes out, and you don't really think too much about that because there's hundreds of millions more behind it somewhere else. You know, I was pissed, right?
Tyler Hatcher (Federal Agent)
Like, I was angry because it should not be so easy for people to rip off my employer. I mean, taxpayer money going out the door like that just. It cuts against everything we do. I couldn't believe, like, the more I dug into this program kind of at large, I was shocked to see the lack of guardrails and the lack of checks and balances and how a company that existed for, I think, at that time, maybe a couple of years was Able to make claims in the hundreds of millions of dollars. Nobody did their home.
Jenny Kingston (Family Member)
I kind of knew at the beginning that I didn't want to be with him. Like, I wanted to leave, but I just didn't see it as an option. I didn't see how I could get out. And then also, like, I still believed the order was right.
Michelle McPhee (Host, Kingdom of Fraud)
After Jacob and Sally are arrested, Jenny Kingston's life doesn't change all that much. She's still living with Jacob Jr. Raising their twin boys. And Jenny says their marriage hasn't gotten any better. She tries to get support in the order, advice on how to deal with the continuing abuse. She alleges what she's told by elders in the group and even members of her own family is troublesome.
Jenny Kingston (Family Member)
It made me very upset. Like, it's just a test. It's just a test. All you need to do is please the one over you, and you'll make it to heaven one day.
Michelle McPhee (Host, Kingdom of Fraud)
Jenny claims Jacob Jr. S abuse reaches an entirely new level.
Jenny Kingston (Family Member)
We got in a big fight, and he threw me against the wall in front of my boys.
Michelle McPhee (Host, Kingdom of Fraud)
Jenny can't stomach the idea of her sons watching this. That's when she decides to leave. She will take the boys and start a new life away from Jacob Jr. And the order. We've reached out to Jacob Jr. For comment, but he hasn't responded. It's worth noting he has not been charged with abuse or violent conduct. And the order told us they, quote, encourage anyone who is experiencing abuse to seek help from the authorities immediately. In any case, Jenny decides to leave the order. She joins forces with a friend. Together, they line up a job and an apartment on the outside. And then one day, Jenny just drives off to start a new life with her kids.
Jenny Kingston (Family Member)
Maybe a year later, then I fucking realized, like, it clicked in my brain, Like, I was brainwashed my entire life. And I started just learning so much about myself and about the order and about this world and, like, why we're here and all the, like, the connection to earth, like, everything. So in my head, like, I just created something that I'm at peace with believing. I think that we are just here to experience, and when we die, then we'll go on to another experience, like karma. If you do bad things to people in this lifetime, like, you're gonna pay for it.
Michelle McPhee (Host, Kingdom of Fraud)
In the order, all Jenny has ever done is follow.
Jenny Kingston (Family Member)
I feel like I just wasn't a person as a little robot.
Michelle McPhee (Host, Kingdom of Fraud)
But she's done with that now. Today, Jenny wants to do things differently. She wants her sons to do things differently.
Jenny Kingston (Family Member)
I want them to know that they have options. They can make their own choice. They can speak for themselves, they can think for themselves and not have the guilt and shame brought with not living the Order standards.
Michelle McPhee (Host, Kingdom of Fraud)
But Jenny isn't the only influence on the kids. She and Jacob Jr are divorced now, but she says they still share custody. So the boys, Jacob Kingston's grandsons, still spend a lot of time living in the Order.
Jenny Kingston (Family Member)
I'm the only one in their life that doesn't believe what they believe in. They are already brainwashed already. And they're seven. Like, they come home to me saying that Heavenly Father is going to tell them who they're supposed to marry in their dreams. And like, no, you're going to experience and date a lot of girls, figure out what you like, what you don't like. And they're like, no, that's bad. That's breaking Order standards. They don't believe me. They're just like, no, you're wrong. Daddy's right.
Michelle McPhee (Host, Kingdom of Fraud)
For these kids, there are two roads, either following the Order's intoxicating promise of eternal life in the Kingdom of God or taking control of their own lives. Time will tell what they choose. Kingdom of Fraud is produced by novels for iHeart podcasts. For more from Novel, visit Novel Audio. The show is hosted by me, Michelle McPhee and produced by Jake Otajevic. It's reported by me and Jake Otajevich. Our assistant producers are Megan Dean and Amalia Sortland, with additional production from Myron Kaplan and Liz Sanchez. Our editor is Sandra Shmueli. Production management from Cherie Houston, Joe Savage and Charlotte Wolf. Our fact checker is Fendal Fulton. Sound design and mixing by Mark Pittam. Original music composed and performed by Nicholas Alexander and Daniel Kempson. Music supervision from Jake Otyvich, Sandra Shmueli and Max o'. Brien. Willard Foxton is creative director at Novel. Our executive producers are me, Michelle McPhee, Max O' Brien and Craig Strachan. The Novel and Stephanie Lang, Katrina Norvell and Nikki Etor are the executive producers for IHear podcasts and the marketing lead is Allison Kanter. Special thanks thanks to Carrie Lieberman, Will Pearson, and the whole team at wme.
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Nissan Narrator 1
last night to this drive. Why is it never chill?
Nissan Narrator 2
Because this is our life backstage on the road. It's loud, messy, real.
Nissan Narrator 3
And that's the best part. Whole crew, no plan, Just moving.
Nissan Narrator 1
Good thing Nissan builds for that kind of chaos.
Nissan Narrator 2
Not just test tracks, real life scenes, late nights, road trips, all of it.
Nissan Narrator 3
That's why it holds up. Nissan was ranked number one in initial quality among mainstream brands by J.D. power.
Nissan Narrator 1
Yeah, you can tell.
Nissan Narrator 3
2026 Nissan Rogue. Built for what really happens.
Nissan Narrator 2
For J.D. power 2025 U.S. initial Quality Study Award information. Visit jdpower.com awards awards based on 2025 model year. Newer models may be shown.
Michelle McPhee (Host, Kingdom of Fraud)
It's called soccer.
Nissan Narrator 3
It's called football.
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Autotrader Parent
car online on Autotrader right now?
Oleg Pobereko (IRS Special Agent)
Really? I can get super specific with dealer listings and see cars based on my budget.
Autotrader Parent
You can really have it delivered or pick it up.
Rach (Johnny Pops Advertiser)
Mommy's walking.
Autotrader Parent
I think kid is walking up the slide.
Rach (Johnny Pops Advertiser)
Really?
Oleg Pobereko (IRS Special Agent)
Autotrader. Buy your car online. Really?
In the gripping finale of the main narrative, investigative reporter and host Michelle McPhee recounts the dramatic unraveling of the billion-dollar fraud conspiracy masterminded by polygamist Jacob Kingston and Armenian tycoon Levon Termendzhyan (aka Lavon). The episode delivers a minute-by-minute breakdown of the federal investigation’s climax, the high-stakes arrests, the breakdown of Kingston and Termendzhyan’s alliance, and the reverberating impact on their families and The Order—a secretive Utah polygamist sect.
McPhee takes listeners inside the fraught “war room” of federal agents, the sting operation to snare Lavon, and the emotional fallout during the trial and sentencing. The episode highlights how deep-seated corruption, money laundering, and personal betrayals intersect with the shocking ease of defrauding US renewable fuel subsidies.
Notable themes: The collapse of criminal partnerships under pressure, family and cult loyalties, systemic vulnerabilities in federal programs, and the personal costs of greed and betrayal.
“If we let them go, they're never coming back.”
— Tyler Hatcher (04:36)
“Our agenda was not to listen to him. Our agenda was to put handcuffs on him.”
— Oleg Pobereko (11:35)
“Jacob told Lavon, you're ruining my life.”
— Steven Washburn (26:15)
“We’re trying to figure out at what point do I have enough pieces that I can convince a jury... that this billion dollar fraud was committed.”
— Steven Washburn (21:39)
“Jacob could feel it bearing down on him… he decides to play the prosecutor's game.”
— Michelle McPhee (29:13)
“Jacob Kingston takes the stand against Levon for six full days...”
— Michelle McPhee (38:58)
“It is very reasonable for every single juror to have significant doubts about whether they can believe anything that Jacob Kingston says.”
— Steven Washburn (39:16)
“Sally gets six years in prison... But the judge saves her real ire for Lavon, the only one in the case that didn’t cut a deal. He is hit with a 40 year sentence, which at his age could mean spending the rest of his life in prison.”
— Michelle McPhee (44:00–44:25)
“I was pissed, right?”
“I couldn't believe, like, the more I dug into this program... there was a lack of guardrails… I was shocked to see the lack of checks and balances…”
— Tyler Hatcher (48:15–48:37)
“Maybe a year later, then I fucking realized… I was brainwashed my entire life.”
— Jenny Kingston (51:26)
| Timestamp | Segment/Event | |-----------|-----------------------------------------------| | 03:09 | Michelle McPhee’s intro, final episode setup | | 04:17 | Discovery of Jacob’s plan to flee | | 07:45 | Lavon calls IRS, falls into sting | | 10:51 | Oleg's impression of Lavon at arrest | | 13:59 | Oleg fears retaliation; Lavon booked | | 14:43 | Jenny’s perspective: toxic marriage & Order | | 16:49 | Federal agents stake out Kingston family | | 19:07 | “Last call” -- Jacob appears at the gate | | 20:18 | Jacob arrested at airport | | 25:22 | Jacob & Lavon meet in jail: alliance broken | | 29:16 | Jacob’s fear, decision to flip | | 30:23 | Jacob’s guilty plea | | 35:13–36:08| Preparing for trial, Jacob testifies | | 42:29 | Jury verdict: guilty on all counts | | 44:00–44:25| Sentencing results detailed | | 46:04 | Order denounces Jacob; loses all money | | 50:10 | Jenny’s turning point, decision to leave | | 51:26 | Jenny’s realization: lifelong brainwashing | | 53:17 | Jenny’s sons and the “two roads” |
The episode concludes on a sobering note—Justice is served, but broken families, ruined reputations, and billions in taxpayer losses are left in the wake. Jacob Kingston is imprisoned, disowned by the Order. Lavon Termendzhyan faces what could be a life sentence. Jenny Kingston seizes her independence and strives to break the cycle for her children, defying both her upbringing and the secretive sect’s hold.
The final words ponder the broader lesson: systemic vulnerabilities enabled fraud on an unimaginable scale—and even when perpetrators are caught, the ripple effects on communities and families may last for generations.
For in-depth looks at the corruption networks, Order life, and the broader biofuel industry scam, listeners are reminded there are three bonus episodes yet to come.