July 24, 2026

Bob Coleman
Founder & Publisher

Fraud Friday: Bank CFO Who Abused His Position to Orchestrate $4.3 Million Construction Loan Scheme Sentenced to Three Years in Federal Prison

This is the follow up to our March report on the conviction of former Bank of the Valley Chief Financial Officer Aaron Luneke, who abused one of the highest positions of trust in community banking to commit a $4.3 million construction loan fraud. A federal judge has now sentenced Luneke to 36 months in federal prison after a jury found he used fraudulent, inflated construction invoices to obtain millions in financing for his personal Legacy Express Wash project in Columbus, Nebraska.

One of a bank’s greatest fraud risks is not always the borrower across the desk.

Sometimes it is the executive sitting down the hall.

He Used His Position to Commit the Fraud

Luneke was not an outside borrower trying to fool a bank.

He was the bank’s Chief Financial Officer.

Aaron Luneke decided to build a car wash. He obtained a construction loan from his bank. To hide his involvement he used a series of corporate shell entities to conceal that he and family members were the actual owners of the car wash.

Luneke submitted the inflated, fraudulent contractor invoices tied to the car wash construction. 

The fraudulent invoices served two purposes. 

They justified larger construction draws from Bank of the Valley and supported a higher valuation for a planned refinance.

Shocking to no construction loan banker, the project soon ran into financial trouble. Luneke attempted to refinance the Bank of the Valley debt with Stearns Bank. He again submitted the fraudulent invoices to justify a higher valuation. Stearns declined the loan. 

The Court Found He Abused a Position of Trust

At sentencing, the court enhanced Luneke’s sentence after finding that he:

• Abused a position of public and private trust as Chief Financial Officer.

• Used sophisticated means to execute and conceal the fraud.

• Directed and organized the criminal scheme.

• Obstructed justice by giving false testimony.

• Caused substantial financial hardship to the victim.

FDIC Office of Inspector General Special Agent in Charge Justin R. Bundy summarized the case:

“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.”

FBI Omaha Special Agent in Charge Eugene Kowel added:

“Mr. Luneke exploited his position of power to conceal a pattern of deception that defrauded his employer.”