With a federal case looming, the founder and former CEO of Eastern Livestock has been sentenced to 10 years in prison probated to run concurrently with any federal charges he receives.
Thomas Gibson, 71, was sentenced June 26 according to the Kentucky attorney general’s office. Business First reports Gibson and the company’s CFO, Steve McDonald, pled guilty in Metcalfe Circuit Court to over 150 charges, including engaging in organized crime and complicity to theft by deception over $1,000 in March.
The two were indicted in September 2011 on a single charge of mail fraud in U.S. District Court in Louisville, the federal case is still pending.
Gibson and McDonald admitted to roles in an ongoing criminal collaboration between 2009 and 2010. Two other company executives, Darren Brangers and Grant Gibson, were each sentenced to five years in prison for their roles in the check kiting scheme.
Eastern Livestock bought cattle from Kentucky producers with non-existent funds. Many cattlemen have already received restitution and more checks will be distributed in the subsequent months. Restitution for victims in the case totals more than $850,000. So far, $600,000 has been handed out.
Gibson will be under federal supervision until his federal case for mail fraud charges begins.