Nearly 2,000 Licenses Revoked In Alleged Kentucky License Fraud
State officials say a criminal investigation is underway after a whistleblower alleged that some applicants paid $200 to obtain Kentucky driver’s licenses without proper documentation. The Governor’s office says 1,985 licenses identified during file reviews have been revoked.
What’s happening
- Criminal investigation: Kentucky officials say state and federal partners are investigating allegations that driver’s licenses were issued improperly at regional licensing offices.
- Whistleblower claims: A former contract clerk alleges some applicants—reported as non-citizens in several accounts—paid $200 in cash to temporary workers to secure licenses or permits without proper documentation.
- 1,985 licenses revoked: During routine reviews of application files, the state identified and revoked 1,985 licenses tied to irregularities, according to the Governor’s office and local TV reporting.
- Officials responding: The Attorney General, Kentucky State Police, and federal partners are involved; the State Auditor has publicly requested explanations from the Governor and Transportation Secretary.
Key details we can confirm
Reporting by Kentucky Lantern and others attributes the original allegations to a whistleblower, Melissa Moorman, a former contract employee who says the scheme occurred multiple times per day and that she was directed to share her login with new hires. She alleges some temporary workers accepted $200 from applicants to push through credentials without the required documentation.
The Governor’s office has said that 1,985 licenses flagged through reviews have been revoked. Local coverage notes officials say a revoked or improperly issued credential would be flagged at a traffic stop and would not function for federal identification purposes.
Separately, the State Auditor sent a public letter asking the Governor and the Transportation Cabinet to explain what was known and when, following media investigations that surfaced the allegations. Legislative Republicans have also issued statements pressing for transparency and accountability while the probe proceeds.
Important: No criminal charging documents have been cited in the above reports as of publication; these are allegations under active investigation.
Why this matters for Kentucky drivers
- License status: If you receive a notice that your credential was revoked due to application irregularities, contact the Kentucky Transportation Cabinet (KYTC) or a regional office for guidance on next steps and documentation needed to re-establish eligibility.
- REAL ID & airport use: Reports indicate improperly issued or revoked credentials wouldn’t be valid for federal identification. Drivers should verify their license status before travel or renewal.
- Office operations: Expect heightened verification steps at licensing offices while the investigation is ongoing.
For details on Kentucky’s current auto insurance and liability requirements, see our
Kentucky car insurance requirements guide.
Timeline (as reported)
- Aug. 12–13, 2025: Local outlets report whistleblower allegations; state officials confirm an investigation is underway.
- Aug. 13, 2025: State Auditor publicly requests explanations from the Governor and Transportation Secretary.
- Mid–Aug. 2025: Governor’s office/TV reports state that 1,985 licenses identified through reviews have been revoked; legislative statements call for transparency.
What we’re still watching
- Whether any arrests or charges are announced, and against whom.
- How many offices and employees are ultimately implicated.
- What remediation steps KYTC implements to prevent recurrence.
Related: Learn how Kentucky enforces
minimum car insurance requirements statewide.