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 lost millions of dollars in the scheme.
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