Dive Brief:

• The former finance chief of a Nebraska bank was sentenced to 36 months in federal prison on July 13 after being convicted on counts of bank fraud related to a $4.3 million scheme connected with loans sought to build a car wash, according to a Friday press release by the Department of Justice.
• Aaron Luneke, previously the CFO for Bank of the Valley, was convicted of one count of bank fraud and one count of attempted bank fraud in March, according to a DOJ press release at the time.
• A jury found Luneke had defrauded both Nebraska community financial institution Bank of the Valley — where he previously acted as CFO — and Stearns Bank of St. Cloud, Minnesota by submitting fraudulent and inflated invoices to obtain loans needed to build and operate a Legacy Express Car Wash in Columbus Nebraska, per the release. Luneke abused his position as finance chief to both perpetuate and to cover up the fraud, United States District Judge Brian C. Buescher found during the sentencing hearing, according to the release.

Dive Insight:

At sentencing, Buescher found Luneke’s former role as CFO “significantly facilitated the commission and concealment of the fraud against the victim bank,” the Friday release notes.

There is no parole in the federal system, the DOJ said in announcing the 36-month sentence. Luneke will serve a five-year period of supervisory release following the conclusion of his prison term, and the judge also ordered Luneke to pay a $10,000 fine, according to the Friday release.

Bellwood, Nebraska-based Bank of the Valley has seven locations across the state and offers community, business and agricultural banking services, according to its website. Luneke served as its CFO beginning on or about Aug. 8, 2018 until on or about May 4, 2022, according to the indictment first filed in the United States District Court for the District of Nebraska in July of 2024.  

Luneke also owned Living Waters RE, a limited liability company registered in Nebraska for the purpose of building a car wash set to operate in Columbus, according to the indictment.  

During his time as finance chief from a period beginning around Feb. 1, 2021, Luneke used both fraudulent and inflated contract invoices to obtain loans related to the construction of the car wash, defrauding or attempting to defraud the two banks, according to the March release on his conviction.

The count of bank fraud included part of a scheme where Luneke abused his authority as CFO to submit fraudulent invoices to Bank of the Valley to obtain additional construction loan funds for the car wash, ultimately receiving two loans totaling about $4.3 million.

Meanwhile, the jury also found Luneke attempted to defraud Stearns Bank in a related scheme, tapping fraudulent invoices in a bid to artificially inflate the value of the car wash property with the aim of receiving a $3.5 million refinancing loan, the Friday release found.

The ex-CFO also relied on a series of shell companies to help obfuscate the fraud, and failed to disclose “significant personal debts owed to family members” connected with his Stearns loan application, according to the press release.

The DOJ declined to comment beyond its Friday press release. Attorneys for Luneke and Bank of the Valley did not immediately respond to requests for comment.