3 more lawsuits filed in connection to $40M Nebraska fraud investigation

Three new lawsuits have been filed in the ongoing fallout of what is said to be one of the largest bank frauds in Nebraska's history, discovered after the death of a Lincoln real estate investor in 2022.

Two of the cases were filed by Aaron Marshbanks' estate, and a third by the court-appointed receiver in a case where the Nebraska Department of Banking has alleged violations of the securities act by Marshbanks before he died and by Jesse Hill.

The cases are the latest of about a dozen that have been filed following Marshbanks' suicide in a downtown Lincoln parking garage on Nov. 2, 2022.

Following his death, bankers across the state began reporting that Marshbanks had taken out millions of dollars in loans after Hill, an investment adviser, had allegedly provided financial statements misstating the value of Marshbanks' collateral.

Within two days, the first of more than 20 creditors — banks, savings and loans and credit unions — started filing demands for notice of an application for informal probate of will and statements of claims.

To date, the claims top $40 million.

The allegations also led to an FBI search of Hill's rural Hickman property that December. But more than a year later, he still hasn't been charged.

In the new complaints filed this week in Lancaster County District Court, Edward Hotz, the personal representative for Marshbanks' estate, sued Brandon Dallmann and Chad Beeman and Signature Style Inc., which does business as Championship Rings.

Both live in Lancaster County.

The suit against Dallmann alleges he worked as Marshbanks' adviser and consultant prior to Marshbanks' suicide and refuses to return Marshbanks' cryptocurrency keys to his estate.

Attorney William Beerman said the day he took his own life, Marshbanks sent an email to Dallmann with certain instructions, saying Dallmann was responsible for all his "crypto and related investments" and to keep them "rolling" for the benefit of his spouse following his death.

The email also linked to a separate document titled "Investments Summary," which he said since has been deleted.

Beerman said Hotz believes Dallmann deleted it "since he was the only individual known to have access to it." When he demanded a full accounting from Dallmann, he refused. In a response from his attorney, Dallmann denied being under any obligation to provide him an accounting of his business dealings with Marshbanks.

The lawsuit seeks an award of any cryptocurrency, cash, or other valuables that Dallmann may owe to the estate and the return of the cryptocurrency keys.

Dallmann did not immediately return a message seeking comment.

The separate suit against Chad Beeman and Signature Championship Rings, a Lincoln company that sells championship rings to winning teams, alleges that Beeman, a business associate of Marshbanks, got the same email and link.

Beerman said Dallman emailed several individuals on Nov. 7, 2022, to set up a meeting two days later regarding Marshbanks' business affairs, saying: "If you are on this email, you are an integral piece of the businesses of (the decedent)."

This January, Hotz sent a letter to Beeman asking for an explanation for a $500,000 transfer from Marshbanks to him. Beerman said Beeman described it as a short-term loan, which he said he repaid within days. Hotz alleged that didn't make any sense because there was no record of Beeman paying any interest or fees connected with the transfer and hasn't paid any money to the estate.

The lawsuit seeks an accounting of Marshbanks' interest in the business, Signature Championship Rings and Signature Graduation.

Beeman's attorney didn't immediately respond to a request for comment.

A third lawsuit was filed last month by the receiver in the Department of Banking case against Hill.

Attorney David Skala was appointed by the court to identify, locate and take immediate possession of all assets subject to being returned to investors as well as to make a full accounting of all liabilities and an investigation into the past and current investment operations and transactions.

Skala alleges in the new case that Hill withdrew $105,000 of investor funds he managed without authorization between April 2022 and Nov. 8, 2022.

He said the money should be returned to JT Equity Trading.

On Thursday afternoon, Hill's attorney, Josh Dickinson, said: "Mr. Hill denies the allegations in the lawsuit and will be filing a response to the complaint stating as such."