Former Columbus bank CFO convicted in $4.3 million loan fraud scheme
A federal jury in Nebraska has convicted a former Columbus bank executive of bank fraud
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Press release
OMAHA, Neb. — A federal jury in Nebraska has convicted a former Columbus bank executive of bank fraud and attempted bank fraud tied to a multimillion-dollar car wash construction project.
United States Attorney Lesley A. Woods said Aaron T. Luneke, 44, of Columbus, was convicted following a two-week trial before U.S. District Judge Brian C. Buescher in Omaha. The jury returned its verdict on March 6.
Prosecutors said Luneke served as chief financial officer of Bank of the Valley in Columbus from July 2018 through May 2022.
Evidence presented at trial showed that between February and June 2021, Luneke carried out a scheme to defraud two federally insured financial institutions in connection with the Legacy Express Wash car wash construction project in Columbus.
According to prosecutors, Luneke attempted to defraud Stearns Bank in St. Cloud, Minnesota, by submitting fraudulent and inflated contractor invoices to increase the value of the property while seeking a $3.5 million refinancing loan. Authorities said he also failed to disclose significant personal debts owed to family members on the loan application.
Prosecutors said Luneke also defrauded Bank of the Valley by submitting inflated contractor invoices to obtain additional construction loan proceeds, securing two loans totaling about $4.32 million. Authorities said Luneke used his role as the bank’s CFO to help carry out the fraud.
Trial testimony from bank officials and compliance staff described a pattern of inflated invoices and undisclosed financial obligations used to secure loans that otherwise would not have been approved. Prosecutors also said Luneke used shell companies to conceal that other individuals benefited from his ownership interest in the car wash.
Luneke faces up to 30 years in prison and fines of up to $1 million on each count. Sentencing is scheduled for June 10.
The case was investigated by the FBI, the FDIC Office of Inspector General, the Federal Housing Finance Agency Office of Inspector General and the Federal Reserve Board Office of Inspector General.