Target of loan fraud investigation was building multimillion-dollar residential complex

LINCOLN, Neb. (Nebraska Examiner) – Editor’s note: this story was updated with new information learned Monday.

The target of a state banking investigation into alleged fraudulent loans was in the process of building a multimillion-dollar residential complex on the eastern edge of the Capital City.

Aaron Marshbanks, who was found dead a month ago in a downtown Lincoln parking garage, obtained a $2.5 million loan to finance construction of a home, guest house and a “barndominium” featuring an indoor basketball court.

The main house on the complex, pictured here in December of 2021, during an earlier stage of construction.(Lancaster County Assessor website)

Alleged fraud of more than $30 million

Marshbanks, the Examiner reported Friday, is being investigated by the Nebraska Department of Banking for allegedly obtaining loans of between $30 million and $50 million by fraud from more than 20 banks, savings and loans and credit unions across the state.

Marshbanks, 45, listed the purpose of the loans as business expenses, and, for some loans, listed homes in Omaha, Lincoln, Bellevue and Ralston as collateral. But several of his loans were not secured with collateral, court records indicated, which leaves banks unable to obtain repayment.

According to Lancaster County records, Marshbanks, a former basketball star at Lincoln Christian High School who was involved in home construction/renovation and a duct cleaning business, purchased a property at 11700 E. Van Dorn St. in April of…

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