Near simultaneous indictments against Eastern Livestock LLC owner and administrators were handed down two weeks ago by both a Metcalfe County Grand Jury and a federal grand jury in Louisville.

According to a statement released by Attorney General Jack Conway, four people were indicted on multiple counts by the Metcalfe County Grand Jury: Thomas “Tommy” Gibson, 71, Steve McDonald, 59, and Grant Gibson, 48, all of Lanesville, Indiana and 43-year-old Darren Brangers of Louisville. All four were involved in directing the operations of the now-defunct Eastern Livestock, LLC and related operations.

The indictment alleges that the defendants engaged in organized crime between 2009 and 2010 by collaborating on a continuing basis in a criminal syndicate, the purpose of which was to commit theft. Their check-kiting scheme resulted in the loss of more than $840,000 by 172 Kentucky cattle producers and others in late 2010.

The indictments follow a nine-month investigation by General Conway’s Department of Criminal Investigations that began when Eastern Livestock failed to pay nearly 800 producers nationwide an estimated $130 million.

The indictment further charges all four defendants, by complicity, with 17 counts of theft by deception over $10,000, 144 counts of theft by deception over $500 and under $10,000 and 11 counts of theft by deception under $500.

Engaging in organized crime is a Class B felony, carrying no less than 10 years imprisonment, and no more than 20 years imprisonment. Theft by deception over $10,000 is a Class C felony carrying five to 10 years imprisonment, theft by deception over $500 is a Class D felony carrying one to five years imprisonment and theft by deception under $500 is a misdemeanor carrying up to 12 months in jail.

The defendants were due to be arraigned in Metcalfe Circuit Court last Tuesday, September 27.

The federal case extends even further back and currently names only two defendants, Thomas Gibson, the owner, and Steven McDonald.

A federal grand jury indictment alleges that between August 9, 2004 and November 2, 2010, in Nelson County, Kentucky, and elsewhere, the defendants devised a scheme to intentionally cause the deposit of billions of dollars worth of checks issued from various bank accounts, in amounts that exceeded available balances in those accounts, in order to artificially inflate balances in Eastern Livestock’s Cash Collateral account.

According to the indictment, the defendants’ purpose in engaging in this check-kiting scheme was to induce Fifth Third Bank, through fraud and deceit, to continue the release of funds to Eastern Livestock under the company’s line of credit with the bank.

The line of credit with Fifth Third Bank expired on October 15, 2010, though the indictment alleges that the defendants continued the execution of the check-kiting scheme against Fifth Third Bank issuing millions of dollars in worthless checks.

If convicted, Gibson and McDonald face a maximum sentence of 30 years in prison and a fine of $1 million, and a period of five years of supervised release.

A bankruptcy petition against Eastern Livestock is in U.S. Bankruptcy Court, Southern District of Indiana.

The indictment of a person by a grand jury is an accusation only and that person is presumed innocent until and unless proven guilty.