UPDATE: 2 Eastern Livestock Officials Sentenced

By: Associated Press
By: Associated Press

UPDATE: 5/21/13 2:15 PM CDT

LOUISVILLE, Ky. (AP) -- Two former officials of defunct cattle broker Eastern Livestock have been sentenced to prison for their roles in a $32 million check-kiting scheme.

U.S. District Judge Thomas B. Russell in Louisville on Tuesday ordered company founder Thomas "Tommy" Gibson incarcerated for 70 months and Chief Financial Officer Michael Steven McDonald imprisoned for 57 months.

Gibson and McDonald pleaded guilty to mail fraud in January.

Both men were charged with running a scheme to deposit billions of dollars' worth of checks issued from various bank accounts, even though there wasn't enough cash on hand to cover the checks. In doing so, the company got Fifth Third Bank to release more funds from Eastern Livestock's $32 million line of credit.

Farmers and cattle ranchers lost millions of dollars in the scheme.


LOUISVILLE, Ky. (AP) — Two former officials of defunct cattle broker Eastern Livestock are set to be sentenced for their roles in a $32 million check-kiting scheme.

U.S. District Judge Thomas B. Russell is set to pass sentence on Eastern Livestock founder Thomas "Tommy" Gibson and Chief Financial Officer Michael Steven McDonald on Tuesday in Louisville.

Gibson and McDonald pleaded guilty to mail fraud in January.

Both men were charged with running a scheme to deposit billions of dollars' worth of checks issued from various bank accounts, even though there wasn't enough cash on hand to cover the checks. In doing so, the company got Fifth Third Bank to release more funds from Eastern Livestock's $32 million line of credit.

Farmers and cattle ranchers, including some in Barren and Metcalfe Counties, lost millions of dollars in the scheme.


WBKO.com is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, no links, share your knowledge, and please suggest removal of comments that violate these standards.

powered by Disqus
WBKO 2727 Russellville Road Bowling Green, KY 42101-3976 Phone: 270-781-1313 After Hours Hotline: 270-781-6397 Fax: 270-781-1814
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 208337741 - wbko.com/a?a=208337741
Gray Television, Inc.