Lundy released on probation

J.T. Lundy, the former president of Calumet Farms, was released on Tuesday after serving nearly four years in federal prisons and halfway houses on charges of bank fraud, conspiracy, and bribery.

Lundy, who entered a federal prison in Pensacola, Fla., on Feb. 21, 2001, was released from a halfway house in Lexington, Ky., on Tuesday morning, according to the Federal Bureau of Prisons. The release requires three years of federally supervised probation, the bureau said.

Lundy had been in the Lexington halfway house since August, after being transferred from the federal prison in Manchester, Ky.

Lundy, who became president of Calumet in 1982, was sentenced to 4 1/2 years in prison in 2000, after federal prosecutors alleged that he and Gary Matthews, the chief financial officer of the farm, defrauded a Houston bank and paid bribes to obtain loans. Calumet went bankrupt in 1991 while it was $125 million in debt.

Lundy and Matthews were ordered to pay $20.4 million each in restitution. Matthews was sentenced to 21 months in prison and was released in 2002.