LOUISVILLE, Ky. (FOX 56) — A whistleblower lawsuit recently exposed the Kentucky Transportation Cabinet for allegedly allowing non-citizens to pay under the table to receive a driver’s license.
Now, Kentucky lawmakers are calling for an investigation.
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According to court documents obtained by FOX 56, Melissa Moorman worked at the Kentucky Transportation Cabinet (KYTC) Department of Vehicle Regulation from October 2022 until her “wrongful termination” in January 2025.
Moorman had reportedly begun training for a supervisor position and was advised to allow new hires to use her login credentials until they had their own. The April lawsuit explained that her supervisor enforced this.
In fall 2024, Moorman reportedly learned that two KYTC employees were creating and supplying Kentucky driver’s licenses and permits to nonresidents. The lawsuit alleges that this was done without the proper screening, including immigration status, and that they were collecting cash payments in return.
“Moorman learned about this because she was invited to join in on the scam,” her attorney, Gary Adams, wrote.
Instead, she allegedly reported this to her supervisor, and this prompted a federal investigation, the lawsuit states. Soon after, Moorman learned that the conspirators were using her login credentials to create and distribute the documents when she wasn’t working.
The conspirators were terminated that fall, and the investigation continued into 2025. According to court documents, Moorman met with federal investigators in January and provided text messages and payroll information, which showed that she wasn’t working when her login credentials were being used.
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Despite this, Moorman’s employment was terminated. To her knowledge, her supervisor still has his job despite the “mismanagement, fraud, abuse of authority, and violations of law and statute in which he engaged that Moorman disclosed and reported,” court documents read.
The Louisville FOX affiliate, WDRB, sat down with Moorman. She explained that this happened four or five times a day for at least two years. But not only in Jefferson County, Moorman told WDRB that this was happening all across the state, charging $200 per license under the table.
Since her interview was released, it has captured the attention of two Kentucky lawmakers who are demanding change.
On the afternoon of Aug. 12, Senate Transportation Chair Jimmy Higdon called for an immediate and extensive investigation.
“If these reports are accurate, this is fundamentally wrong on every level. It’s not just a breakdown in oversight but a betrayal of public trust,” Higdon expressed. “The people of Kentucky deserve to know how widespread this revelation is, who allowed it, and what steps will be taken to prevent it in the future. I appreciate the press for bringing this story forward and to the attention of the public.”
The most concerning aspect, to Higdon, is that Kentuckians have expressed their frustrations with wait times and appointments at Kentucky’s driver’s licensing branches, and non-residents have allegedly been receiving prioritized services.
“Kentuckians have been vocal about their frustrations with driver’s license services and appointments. To now learn that illegal residents may have been fraudulently provided licenses and IDs, documents that could enable participation in our elections, is simply unacceptable. It’s an affront to good governance,” he wrote.
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Rep. Andy Barr, a hopeful successor to Sen. Mitch McConnell, said instances like this are exactly what the Trump administration is fighting against.
“Every illegal who received a fake driver’s license must be deported. I will work with James Comer to launch a full investigation to get the facts. Everyone responsible must be held accountable to the fullest extent of the law,” Barr said. “I’ll also be calling Tom Homan to get his assistance. President Trump and I are committed to securing our border and stopping this type of lawlessness.”
“If this is true, everyone involved must be immediately fired and charged,” Barr emphasized.
But for Moorman, she just wants her job back. She told WDRB that she believes she shouldn’t have been punished for doing the right thing.
According to the lawsuit, Moorman is suing for compensatory and punitive damages as well as back pay and reinstatement of her position at KYTC.
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