Glasgow Daily Times, Glasgow, KY

Local News

May 22, 2013

Eastern Livestock executives sentenced to federal prison

BOWLING GREEN —

After a year and a half in the court system, two livestock industry executives have been sentenced to serve federal prison time for crimes that devastated many in the local agricultural community.

Thomas P. “Tommy” Gibson, founder and former owner of the now-defunct Eastern Livestock Company, LLC, and former chief operating officer Michael Steven McDonald, both of Lanesville, Ind., were sentenced by Judge Thomas B. Russell Tuesday in U.S. District Court for charges of mail fraud. Gibson will serve 70 months in prison, while McDonald will serve 57 months in prison, both followed by two years of supervised release, according to a U.S. Department of Justice press release. There is no parole in the federal system.

Gibson, 73, and McDonald, 61, participated in a multi-million dollar check-kiting scheme to inflate Eastern Livestock’s accounts and have Fifth Third Bank continue to extend a line of credit to the company. When Fifth Third discovered the fraud and froze Eastern Livestock’s accounts in November 2010, farmers at the Edmonton Buying Station received hundreds of thousands of dollars’ worth of cold checks in exchange for their cattle. Livestock farmers, auction houses, banks and other business people across the country were affected by Eastern Livestock’s default.

 

 

Read more of this story in the print or digital Glasgow Daily Times. http://glasgowdailytimes.cnhi.newsmemory.com/

 

 

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