Melissa Moorman’s first day as a supervisor-in-training at Louisville, Kentucky’s Nia Center Licensing Branch quickly revealed irregularities in the workflow. She was given a shared computer login and asked to oversee routine transactions. The ex-clerk later reported that her access was exploited by co-workers. She says they ran a scheme that sold Kentucky driver’s licenses to illegal immigrants for $200 each.

Moorman claimed the practice occurred four to five times a day across multiple Kentucky branches for at least two years

She described how documents, including social security cards and birth certificates, were made to look legitimate. Then, applicants received Kentucky driver’s licenses without taking tests or passing Homeland Security background checks.

According to Moorman, she was initially unwillingly drawn into the scheme when co-workers used her login. This happened while she was away from her desk. She reported the activity to her supervisor. Later, she submitted a formal letter to the Kentucky Transportation Cabinet in October 2024.

She said her whistleblowing ultimately led to her termination in January 2025

The cabinet maintained her firing was for legitimate, non-discriminatory reasons unrelated to reporting the fraud.

The issue became public in April 2025 when WDRB obtained documents. Those revealed that the Kentucky cabinet had sent over 1,500 letters warning of irregularities and threatening criminal consequences if the driver’s licenses were not returned.

At least two employees implicated were terminated in late 2024. Still, thousands of records remain withheld amid ongoing investigations by the Kentucky State Police and the U.S. Attorney’s Office.

Legal experts highlighted that the scheme exploited a vulnerable population

For non-citizens without a pathway to legal status, possessing a driver’s license can allow safe transportation to work and family obligations, making the $200 fee a tempting but illegal shortcut.

The controversy prompted action from Kentucky’s state leadership

Governor Andy Beshear confirmed that state and federal investigators are reviewing the claims. 

He reported that nearly 1,985 licenses have been revoked and that all employees involved were hired through a temporary agency and have been terminated. Beshear emphasized that maintaining the integrity of state-issued identification is a high priority and that irregularities are taken seriously.

Kentucky Auditor Allison Ball requested a formal explanation from Beshear and Transportation Secretary Jim Gray. WKYT shared her letter. She indicated that the alleged black market undermined public trust and disadvantaged law-abiding residents waiting to obtain licenses legally.

Moorman continues to seek accountability and hopes to reclaim her position. She reported that her goal is to ensure the system prevents future exploitation and that those responsible for violations are held liable, highlighting systemic oversight failures and the human cost when government processes are abused.