Aaron Luneke walked out of a federal courtroom on July 13th with a 36-month prison sentence, five years of supervised release to follow, and a $10,000 fine. The former CFO of Bank of the Valley in Nebraska had been convicted by a jury back in March on charges of bank fraud and attempted bank fraud.
The scheme revolved around a car wash. Specifically, the construction and operation of Legacy Express Car Wash in Columbus, Nebraska. Between February and June 2021, Luneke submitted fake and inflated contract invoices to secure construction loan funds, eventually pulling two loans from Bank of the Valley totaling roughly $4.32 million.
Two banks, shell companies, hidden debts
He didn't stop there. Prosecutors say Luneke also tried to hit Stearns Bank in St. Cloud, Minnesota, with a related refinancing scheme, submitting fraudulent invoices to inflate the apparent value of the car wash property and apply for a $3.5 million refinancing loan. That attempt didn't go through, but the jury found him guilty of the attempted fraud anyway.
To keep things buried, Luneke used shell companies and left out substantial personal debts owed to family members when filling out his Stearns Bank loan application. At sentencing, U.S. District Judge Brian C. Buescher noted that Luneke's position as CFO gave him unusual access to cover his tracks, saying his role "significantly facilitated the commission and concealment of the fraud against the victim bank."
Federal prison carries no parole. Luneke serves the full 36 months.
