Kentucky Distillery Co-Owner Indicted on Felony Theft Charge as Foreclosure Hits

(Photo: LF Heritage Distillery)

Co-owner of Limestone Farms Distillery Darrin Dillow has been indicted on a felony theft charge as the Kentucky whiskey operation faces mounting legal and financial troubles, according to The Business Journals.

Darrin Dillow, who co-owns the distillery with his wife, was indicted March 23 by a Fayette County grand jury on a Class C felony charge of theft by deception involving $10,000 or more.

According to the indictment, Dillow allegedly obtained money from a financial institution in August 2024 by misrepresenting ownership of property used as collateral for a loan. Local reporting cited in the case alleges Dillow claimed ownership of farm equipment and cattle tied to a $100,000 loan, though those assets reportedly belonged to a neighbor.

Dillow is scheduled to appear in Fayette Circuit Court on April 24. Under Kentucky law, a Class C felony carries a potential sentence of five to 10 years in prison, along with possible fines. He is presumed innocent unless proven guilty.

The legal challenges come as the distillery property itself faces foreclosure. On March 23, a judge ordered the foreclosure of the 26-acre site at 197 Soards Road, which includes a tasting room and bottling facility.

The foreclosure follows a motion filed by Thoroughbred Engineering, which claims it is owed more than $273,500 for design and engineering services tied to a planned expansion project. That project, a proposed 33-acre site on Paynes Depot Road, never materialized after initial excavation work.

The broader financial picture appears more severe. As of 2025, the distillery and related entities were reportedly facing roughly $2 million in liens and lawsuits, with some estimates of total claims reaching as high as $5 million. Creditors include general contractor KTF Group and Woodford Excavation & Transport, among others.

Operating under the name LF Heritage Distilling Co., the business was founded in 2022 and began production in October 2023. It was later included on the Kentucky Distillers’ Association’s Kentucky Bourbon Trail, with plans for significant production capacity.

The brand also initially drew attention for early backing tied to former Tim Couch, though he is not named in any current legal actions.

Dillow’s attorneys withdrew from the case in March, and he has been given time to secure new legal representation. A motion hearing related to the foreclosure case is scheduled for May 7.

The case adds to a growing list of financial and legal pressures facing newer entrants in the American whiskey industry, particularly as development costs and market conditions tighten.