Ex-Bank of the Valley CFO sentenced to 36 months for $4.3M loan fraud

Grace Noto CFO Dive Mon, July 20, 2026 at 7:36 AM PDT | 3 min read

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Dive Brief

• The former finance chief of a Nebraska bank was sentenced to 36 months in federal prison on July 13 after being convicted on counts of bank fraud related to a $4.3 million scheme involving loans sought to build a car wash, according to a Friday press release by the Department of Justice.
• Aaron Luneke, previously the CFO for Bank of the Valley, was convicted of one count of bank fraud and one count of attempted bank fraud in March, per a DOJ press release at the time.
• A jury found Luneke defrauded both Nebraska community financial institution Bank of the Valley — where he previously served as CFO — and Stearns Bank of St. Cloud, Minnesota, by submitting fraudulent and inflated invoices to obtain loans needed to build and operate a Legacy Express Car Wash in Columbus, Nebraska. United States District Judge Brian C. Buescher found during the sentencing hearing that Luneke abused his position as finance chief to both perpetuate and conceal the fraud.

Dive Insight

At sentencing, Judge Buescher found that Luneke's former role as CFO "significantly facilitated the commission and concealment of the fraud against the victim bank," the Friday release noted.

There is no parole in the federal system, the DOJ said in announcing the 36-month sentence. Luneke will serve a five-year period of supervised release following his prison term. The judge also ordered Luneke to pay a $10,000 fine, according to the release.

Background on Bank of the Valley

Bellwood, Nebraska-based Bank of the Valley operates seven locations across the state and offers community, business, and agricultural banking services, according to its website. Luneke served as its CFO from on or about August 8, 2018 until on or about May 4, 2022, according to the indictment first filed in the United States District Court for the District of Nebraska in July 2024.

The Fraud Scheme

Luneke also owned Living Waters RE, a limited liability company registered in Nebraska for the purpose of building a car wash in Columbus, according to the indictment.

During his tenure as finance chief, beginning around February 1, 2021, Luneke used fraudulent and inflated contract invoices to obtain loans related to the construction of the car wash, defrauding or attempting to defraud the two banks, according to the March release on his conviction.

• The count of bank fraud involved a scheme where Luneke abused his authority as CFO to submit fraudulent invoices to Bank of the Valley to obtain additional construction loan funds for the car wash, ultimately receiving two loans totaling approximately $4.3 million.
• The jury also found Luneke attempted to defraud Stearns Bank in a related scheme, using fraudulent invoices to artificially inflate the value of the car wash property in an effort to obtain a $3.5 million refinancing loan, the Friday release stated.

Additional Findings

The ex-CFO relied on a series of shell companies to help obscure the fraud and failed to disclose "significant personal debts owed to family members" connected with his Stearns loan application, according to the press release.

Responses

The DOJ declined to comment beyond its Friday press release. Attorneys for Luneke and Bank of the Valley did not immediately respond to requests for comment.