Lawsuit claims Kentucky workers sold licenses to illegal immigrants

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Former Kentucky Transportation Cabinet (KYTC) clerk Melissa Moorman sued her old employers for allegedly firing her because she reported on co-workers selling driver's licenses to illegal immigrants.

According to court documents obtained by Fox News Digital, Moorman discovered in 2024 that two co-workers from the Department of Vehicle Regulation were selling documents to "nonresidents" without proper immigration screenings or testing. Her lawyers argued that she knew of the crime after being invited to participate.

"The employees were being paid under the table," Moorman told WDRB News on Monday. "I immediately let my supervisor know about it."

She also informed WDRB News that these co-workers would sell licenses for $200 per person approximately four to five times a day, for over two years. Moorman said that every case she encountered involved an illegal immigrant.

Melissa Moorman reported seeing employees selling driver's licenses to illegal immigrants without screening legal documents or giving tests. (Getty Images)

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After she reported the crime, the co-workers were fired, and a federal investigation was launched into KYTC. Moorman allegedly met with federal investigators in January after learning those employees were using her credentials and log-in information without her knowledge at the time. She has said that she was instructed by her supervisor to provide the employees with this information as they waited for their own credentials when they first started. 

KYTC fired Moorman the day of her interview but, according to Moorman's lawyers, has kept her supervisor despite the "mismanagement, fraud, abuse of authority, and violations of law and statute in which he engaged that Moorman disclosed and reported."

"I was angry, hurt and depressed," Moorman told WDRB News. "I did the right thing. I told the truth. I should not have been fired."

Moorman filed the lawsuit in April, claiming that KYTC violated the Kentucky Whistleblower Act, which protects public whistleblowers who come forward with information about misconduct. She has asked for her job and benefits to be reinstated along with back pay.

Moorman said she saw employees sell licenses approximately four to five times a day. (Getty Images)

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"It is tragic that the Kentucky Transportation Cabinet chose to terminate the person that uncovered the fact that hundreds, perhaps thousands of undocumented people were provided Kentucky driver’s licenses that they were not qualified to receive," Moorman's attorney Garry Adams told Fox News Digital. "The scheme that Melissa Moorman uncovered was putting all Kentuckians that operate or ride in motor vehicles in danger, and she should have been rewarded for her disclosure rather than terminated for it."

He continued, "This type of behavior where local, state and even federal governments seem to favor sweeping big problems under the rug, rather than disclosing it, addressing it and fixing it has got to stop."

KYTC released a statement to Fox News Digital confirming that it had "identified a number of irregularities and revoked 1,985 credentials" and terminated all employees involved, but offered no updates. 

"This is an ongoing criminal investigation with numerous state and federal agencies participating, including Kentucky State Police, the Kentucky Attorney General, U.S. Attorneys and others. We have been asked not to share documents or certain information so as not to compromise the investigation," the statement read. "KYTC has turned over all requested information to law enforcement who are investigating the facts, and further questions should be directed there."  

Kentucky law allows non-U.S. citizens to obtain standard driver's licenses only if they provide proof of residency and valid immigration documentation. Presenting false documents regarding immigration status could be grounds for prosecution.

Kentucky law prohibits giving licenses to non-residents without proper documents. (iStock)

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In a comment to Fox News Digital, Kentucky Attorney General Russell Coleman said the reports showed "troubling and unacceptable conduct," adding that they have been "aggressively investigating this potential fraud for some time now" with federal law enforcement.