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WBM Files Suits Against Kentucky Legislator

WBM partner John Whitfield is representing the plaintiffs in a lawsuit accusing a Kentucky lawmaker of misusing his company’s money to finance his campaign as well as for personal use.

Plaintiffs Lawrence Holmes and Jason Myers, who represent shareholders of the Liberty Rehabilitation Corporation in Madisonville, say Kentucky State Rep. Ben Waide allegedly spent thousands in corporate funds on campaign mailings and newspaper ads, as well as on meals, clothing, trips, and entertainment. Waide is president and director of Liberty.

The complaint, filed in Hopkins Circuit Court, alleges that Waide has been violating state law, including breaches of fiduciary duties, gross mismanagement, and waste of corporate assets, since 2006. The plaintiffs seek reimbursement for the company, along with punitive damages and legal fees.

The plaintiffs have provided evidence, including credit card receipts and checks, alleging that Waide used Liberty funds for his campaign and personal use. Among the expenses were hotel and room service charges for an anniversary trip with his wife. Whitfield also says that Waide used Liberty funds to pay for items for which he was reimbursed by the state. He alleges that Waide pocketed the reimbursement.

The civil suit was filed Dec. 30. Whitfield said the plaintiffs have additionally filed a complaint with the Kentucky Registry of Elections Finance.