A federal jury in the District of Nebraska convicted Aaron T. Luneke, former Chief Financial Officer of Bank of the Valley in Columbus, on March 6 of bank fraud and attempted bank fraud related to a scheme involving a local car wash project.
Luneke was found guilty after a two-week trial before United States District Judge Brian C. Buescher in Omaha. The charges stemmed from actions taken between February and June 2021, when Luneke devised a plan to defraud two federally insured banks through fraudulent invoices and undisclosed debts connected to Legacy Express Wash, a car wash construction project in Columbus.
According to evidence presented at trial, Luneke attempted to defraud Stearns Bank in Minnesota by submitting inflated contractor invoices to increase the valuation of the property for a $3.5 million refinancing loan. He also failed to disclose significant personal debts owed to family members during this process. In addition, Luneke was found guilty of defrauding his own employer, Bank of the Valley, by using similar tactics to obtain two loans totaling approximately $4.32 million.
Testimony from several bank officials detailed how Luneke exploited his position as CFO by orchestrating inflated invoices and concealing financial obligations, which led both banks to approve loans they otherwise would not have granted. The evidence also showed that he used corporate shell entities to hide additional beneficiaries with ownership interests in the car wash.
Luneke faces up to 30 years in prison for each count and fines up to $1 million per count. Sentencing is scheduled for June 10.
Eugene Kowel, Special Agent in Charge of the FBI Omaha Field Office, said: “Mr. Luneke exploited his position of power to conceal a pattern of deception that defrauded his employer. Financial crimes erode public trust and confidence in our country’s economy, so we will remain steadfast in our efforts to investigate those using illegal means to enrich themselves for personal gain. The FBI is thankful for the investigative work by our partners that led to the conviction of Mr. Luneke.”
Special Agent Justin R. Bundy from FDIC OIG said: “This case highlights the risk that trusted bank insiders will abuse their position to perpetrate fraud, and in this instance obtain millions of dollars from financial institutions.”
Acting Inspector General Chris Schrank stated: “The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) will continue to relentlessly investigate and pursue the prosecution of those who defraud financial institutions… Officers of financial institutions who have a duty to conduct honest business must be held accountable.”
Michael E. Horowitz, Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau added: “Aaron Luneke abused his position as a bank executive… We are proud to have worked alongside our federal law enforcement partners to achieve this result.”
The investigation involved multiple agencies including the FBI Omaha Field Office; FDIC OIG; FHFA OIG; and Board of Governors OIG.
