Former Bank chief financial officer sentenced to three years for $4.3 million loan fraud

LINCOLN, Neb. (KOLN) – A former bank chief financial officer was sentenced to three years in prison for a bank fraud scheme involving a car wash and undisclosed debts in a $4.3 million loan scheme.

The Department of Justice said Aaron T. Luneke, 44, of Columbus, was sentenced after being convicted of committing bank fraud and attempted bank fraud in connection with loans he sought to build and operate a Legacy Express Wash, a car wash in Columbus.

According to the DOJ, Luneke was sentenced to 36 months’ imprisonment. There is no parole in the federal system.

After his release from prison, Luneke will begin a five-year term of supervised release. Luneke was also ordered to pay a $10,000 fine.

The jury found that Luneke attempted to defraud Stearns Bank, located in St. Cloud, Minnesota, by using fraudulent and inflated contractor invoices to artificially inflate the valuation of the car wash property in pursuit of a $3.5 million refinancing loan. Further evidence at trial established that Luneke failed to reveal significant personal debts owed to family members in connection with the Stearns Bank loan application.

The jury also found that Luneke defrauded Bank of the Valley by submitting fraudulent and inflated invoices from contractors as the basis for additional construction loan proceeds, obtaining two loans totaling approximately $4,320,000.

At the sentencing, the judge found that Luneke’s abuse of his position as chief financial officer at Bank of the Valley significantly allowed for the fraud against the victim bank to occur, and helped to conceal the crime.

The DOJ said the court further determined that Luneke employed sophisticated means to carry out the scheme, and that he served an aggravating role by organizing, leading, managing, or supervising others in executing aspects of the fraud.

Luneke also obstructed justice by providing false testimony during trial and caused a victim to suffer substantial financial hardship.

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