Kentucky distiller charged with criminal loan deception
A grand jury has charged Darron Dillow, co-owner of Limestone Farms Distillery, with “theft by deception” for allegedly using a neighbour’s farm as collateral to secure a loan worth more than US$10,000, without their permission.
According to a grand jury in Fayette County, Kentucky, distillery owner Darron Dillow “obtained money from a financial institution by deception…by intentionally or reinforcing a false impression that he owned certain property offered as collateral for a loan when in fact he did not own that property.”
The alleged offence took place “on or about the 8th day of August 2024″, and falls under the crime of “Theft by Deception”.
Local news channel Lex 18 reported that Dillow had used a neighbour’s farm equipment and cattle as collateral to secure the US$100,000 loan. The real owner of the farm, which is located next door to Dillow’s property, was horrified to learn that the loan provider intended to seize his land after Dillow defaulted on his payments.
“They were filling out the paperwork when he called me. They were actually filling out the paperwork,” said William McIntosh.
“I could not believe that this would actually happen to us. It’s something like out of a movie, but just the betrayal of this person. I mean, it’s, again, it’s someone we’ve ate with, we’ve been on vacation together. We’ve been friends for over 10 years…
“I mean, it’s just terrible. That’s a relationship… that’s more than done”.
Growing debts
Despite being part of the official Kentucky Bourbon Trail, Dillow’s Limestone Farms Distillery has been struggling financially for some time, and last week a judge ordered a foreclosure and sale of the property. It is possible that the accused took out the loan to stop the business from going under.
The 26-acre property must now be sold to cover more than US$800,000 in debts related to the distillery’s construction, its bottling plant and other on-site facilities. Several contractors are owed money for work completed on Limestone, including Thoroughbred Engineering, which was hired to design and build the distillery and visitors centre, and Woodford Excavation and Transport of Versailles, which forked out nearly US$1.3 million for site development work on the property.
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As recently as 11 March, Limestone was encouraging its 9,500 Instagram followers to “make your plans to visit and check out our tour experiences”, suggesting it had no prior intention to shut up shop ahead of the court order.
However, Dillow’s misfortunes do not end there.
His LF Heritage Distilling business, parent company to Limestone Farms Distillery, is also in debt to the tune of millions of dollars with regards to a second distillery property in Scott County. The case has been postponed after Dillow’s attorney withdrew from representing him. He has until 23 April to obtain new counsel.
False claims
If found guilty of ‘Theft by Deception’ relating to the loan allegedly obtained based on false claims, Dillow faces five to ten years imprisonment as the charge is a class C felony.
Detailing further lies, farm owner McIntosh said the betrayal was deepened by Dillow telling loan officers that McIntosh’s father and uncle were Dillow’s own employees.
“He said those were his employees, seasonal employees…They’ve never worked a second for that man,” McIntosh said.
“Good folks, making good juice”
With a tagline of “Just good folks, making good juice”, Limestone Farms Distillery produces a flagship Bourbon called Yellowstone, Minor Case Rye whiskey finished in cream Sherry casks, and Bowling & Burch gin, which it says represents a “more nuanced, floral, New World experience”. The distillery also offers private whiskey and cigar pairing experiences from US$40 a head and the chance to “bottle your own Yellowstone Kentucky Straight Bourbon” for US$25 per person, plus cocktail-making classes.
It was due to be taking part in the Kentucky Bourbon Festival in September, before the distillery was instructed to close its doors to pay off its debts.
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