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Ex-Nebraska Liquor Regulator, Lincoln Club Owner Plead Not Guilty in Federal Corruption Case

Prosecutors describe a quid pro quo exchanging cash, club perks, sex acts for lax liquor oversight.

Overview

  • Federal prosecutors say Hobert Rupe and Brent Zywiec were indicted by a grand jury and arrested on September 24 after a joint DOJFBINebraska Attorney General investigation.
  • Rupe and Zywiec entered not-guilty pleas in virtual hearings, and a judge ordered both released with conditions pending further proceedings.
  • The indictment charges both men with conspiracy to commit honest-services fraud plus three honest-services counts, with Rupe also facing two wire-fraud counts and one Hobbs Act extortion count.
  • Prosecutors allege Rupe accepted a stream of benefits including commercial sex acts, cash, drinks, VIP access, and waived cover charges in exchange for failing to enforce liquor rules.
  • The filing alleges efforts to harm rival Omaha clubs, specifically Club 180 and Club Omaha, notes an alleged $65,000 extortion for licensing help, and cites potential maximum penalties of up to 20 years per count.