During this time he began investing profits from KCL into various business ventures, including real estate development projects in the downtown Lexington area.

Kincaid trusted the Webbs to carry out his vision of a modern downtown Lexington and the two parties entered into a number of business transactions, many of which were backed by loans from Kentucky Central.

Lexington's "new downtown" financed by KCL and developed and managed by the Webb brothers were viewed in the local media as a success story; however, less than ten years later both parties would be in deep financial trouble.

[3] One reason for the push into the real estate and property development market was due to higher than expected payouts on certain high-risk life insurance products.

Kentucky Central had set sales goals which could not be met under the financial conditions given, meaning that the company felt it had to push as much revenue as possible out of its real estate investments.

One such example was a 23-story development in the San Francisco, California financial district that was built by the Webb brothers with a loan of $46 million from Kentucky Central.

Also Wilkinson and his wife failed to make interest payments on $11.4 million worth of industrial revenue bonds used to construct a high-rise condominium in downtown Lexington for which Kentucky Central served as guarantor.

[4] Ill with brain cancer, Bud Burnett died soon after Kentucky Central was declared insolvent, and liquidation proceedings began in early 1994.

One of the initial lawsuits filed by the state was against the KCL Board of Directors and the estate of Bud Burnett seeking $200 million in damages.

[10] During the 2007 Gubernatorial campaign Democratic candidate Steve Beshear was accused by his opponent, then-Governor Ernie Fletcher, of having a role in the collapse of Kentucky Central.

Beshear's law firm, Stites & Harbison, was hired to serve as general counsel to liquidator Donald Stephens, who was the state insurance commissioner.

However, Stites & Harbison already represented the Bank of Louisville, whose holdings included millions of dollars of securities put up as collateral for a loan connected to Kentucky Central in a complicated real estate deal.