The $45 Million Fraud that Ripped off 20 Nebraska Banks
November 7, 2025
Bob Coleman
Founder & Publisher, Coleman Report
Fraud Friday: The $45 Million Fraud that Ripped off 20 Nebraska Banks
Jesse Hill, 35, of Hickman, Nebraska, was sentenced to five years in federal prison for his role in a scheme that defrauded nearly twenty banks of tens of millions of dollars.
U.S. District Judge Susan Bazis imposed the sentence, calling Hill’s conduct “deliberate and calculated.” Bazis said, “This particular offense would not have been possible without you.” She told Hill from the bench that his actions were “the exact polar opposite” of the reputation he had built as a family man and church leader.
Judge Bazis said Marshbanks’s death “left you holding the bag” for restitution and prison time but emphasized that the sentence was appropriate given “the deliberate nature of your actions.” Assistant U.S. Attorney Don Kleine requested at least 97 months, describing it as “just punishment for a conspiracy that targeted more than twenty financial institutions.”
Hill’s attorney, Pat McInerny, argued for a lesser term, citing comparable fraud sentences and letters from church members attesting to Hill’s community character. Hill read a written statement: “I’ll be working the rest of my life to repair my reputation and make restitution. I didn’t have the courage to challenge what was happening as the losses grew.”
The Beginning
The fraud began in 2020 and extended through late 2022, involving fraudulent loan applications totaling more than $45 million submitted to banks across Nebraska and western Iowa. The central mechanism was the fabrication of investment-account statements and false representations of collateral.
Hill operated First SOJO Capital Group, an SEC-registered investment advisory firm, and acted as the financial adviser to Lincoln businessman Aaron Marshbanks. Together, they represented to bankers that Marshbanks controlled an investment account containing between $6 million and $7 million, which would serve as collateral for a series of loans.
Hill prepared and delivered fraudulent financial statements to banks and accompanied Marshbanks to meetings where he vouched for their legitimacy. The statements falsely listed assets held by Piedmont Fund Services, Inc.; the firm later confirmed it had no knowledge of Big Bear Capital or the accounts referenced.
Court filings show that over twenty Nebraska and Iowa banks extended credit based on similar documentation. Losses exceeded $30 million, according to Judge Bazis, wiping out annual earnings at some community banks and reducing staff bonuses and raises.
The scheme collapsed after Marshbanks’s death in November 2022, when banks began cross-checking pledged assets and discovered overlapping collateral claims and nonexistent accounts.
Jesse T. Hill
Hill managed advisory and private-equity-style funds and previously operated JT Equity Trading, a firm fined $7,500 in 2018 by the Nebraska Department of Banking and Finance. The penalty stemmed from selling approximately $4 million in unregistered securities and acting as an investment adviser without registration.
Hill’s community role and reputation as a church leader contrasted with the conduct before the court. Judge Bazis remarked on this duality, calling his crime “the exact polar opposite” of his public character.
Under his plea agreement, Hill admitted to one count of conspiracy to commit bank fraud, with prosecutors dismissing additional charges. He agreed to forfeit his ownership interests in:
- His $900,000 villa in Puerto Rico
- A share in a multi-million-dollar Pilatus aircraft
- Funds held in an investment account.
Hill’s restitution obligations remain under determination as federal receivers pursue recovery of assets tied to both Hill and Marshbanks. It is unclear whether Hill will retain ownership of his $1.2 million home near Hickman.
The court-appointed receiver continues tracing accounts, real-estate holdings, and cryptocurrency investments connected to the scheme. The U.S. Attorney’s Office estimates the loss to lenders at over $30 million, with total exposure exceeding $45 million in attempted credit lines.
Aaron Marshbanks
Marshbanks operated a network of limited-liability companies for property acquisition and renovation. His entities—such as Big Bear Capital LLC and others bearing religious names like 1 Chronicles 29:11 LLC—appeared legitimate to lenders, reinforced by his visibility in the Lincoln community.
He was a graduate of Lincoln Christian High School, where he played basketball at six foot six inches tall. He later served on the school board and as treasurer for the nonprofit that oversees the school. Community members described him as personable, ambitious, and devout—a combination that helped him secure credibility with local bankers and investors.
Regulators later concluded that the continued use of the DuctMedic address added legitimacy to loan applications that were otherwise unsupported by collateral. State banking officials described the network of filings and false statements as “a pretty sophisticated fraud.”
White Collar Crime is not a Victimless Crime — Death of Aaron Marshbanks
On November 2, 2022, Marshbanks was found unresponsive in his Audi Q5 in a downtown Lincoln parking garage. A “concerning email” had been sent to associates indicating his location. A suspected suicide note was found in the vehicle.
The Lancaster County Attorney listed the manner of death as undetermined, citing a combination of fentanyl, pentobarbital, and metoclopramide overdose. Authorities could not classify the death definitively as suicide, accident, or other cause.
He was not indicted or charged before his death. Afterward, banks began filing claims against his estate, and investigators discovered multiple fabricated investment statements and nonexistent collateral accounts.
As of December 2022, claims exceeded $30 million; later filings projected total exposure approaching $50 million. At least 20 banks, savings and loans, and credit unions have lodged formal claims.
Where’s the Cash?
Following Marshbanks’s death and Hill’s guilty plea, the court-appointed receiver began identifying and liquidating assets connected to the scheme. The receiver is pursuing:
- Real-estate holdings under multiple LLCs
- Residual investment accounts
- Cryptocurrency wallets linked to Marshbanks.
And Hill remains responsible for restitution. Judge Bazis noted during sentencing that the financial damage extended beyond balance sheets to employees and communities: “The banks lost more than money. They lost trust, stability, and years of work. The consequences of these decisions are long-term.”
Lessons Learned
The fraud unraveled only after Marshbanks’s death triggered review of the pledged accounts. Hill’s sentencing closes the criminal chapter, but restitution and recovery proceedings continue.
This case demonstrates the systemic risk created when fabricated collateral is accepted without independent verification. Banks extended credit on the representation of an investment account holding $6–$7 million that never existed. The pattern spanned more than nineteen institutions, resulting in losses exceeding $30 million and attempted credit lines above $45 million.
Lenders later discovered:
- Duplicate collateral pledged to multiple banks
- Investment statements using a legitimate fund administrator’s name without authorization
- Loan documents referencing inactive or unrelated business addresses.
Summary Timeline
2010: Marshbanks sells DuctMedic but continues using its address for business filings.
2018: Hill fined $7,500 for unregistered securities sales through JT Equity Trading.
2020: Hill and Marshbanks begin fabricating investment-account documents for bank loans.
March 2022: Midstates Bank issues $2 million loan to Big Bear Capital based on false collateral.
August 2022: Additional $500,000 loan issued; new statements again claim $6–$7 million balances.
November 2, 2022: Marshbanks found deceased in Lincoln parking garage.
December 2022: Bank claims exceed $30 million.
June 2025: Hill pleads guilty in U.S. District Court to conspiracy to commit bank fraud.
October 2025: Judge Bazis sentences Hill to five years in federal prison.