LINCOLN, Neb. (Nebraska Examiner) — A Lincoln businessman under investigation for a major case of bank fraud continued to use the address of a duct-cleaning outlet as his company location for more than a decade after he sold the business.
Aaron Marshbanks, the target of a probe by the Nebraska Department of Banking and Finance, listed an address on North 52nd Street in Lincoln as the home of several limited liability corporations he operated to renovate and resell homes.
Sold business in 2010
But he sold the duct-cleaning business in 2010, according to the owner of that business, Bill Hippen.
Hippen said that as part of the sale, he agreed to let Marshbanks continue to use his DuctMedic outlet in Lincoln as his mailing address.
He said that someone picked up Marshbanks’ mail on a regular basis, and he allowed Marshbanks to store produce at his business for a charity produce stand he was involved in.
Hippen said he was not aware of the DuctMedic address was used as the home office on loan documents signed by Marshbanks. Marshbanks’ recent business dealings focused on “flipping” homes, mostly in northeast Omaha, through several limited liability corporations he had formed, court documents indicated.
Omaha law office used in business filings
While Marshbanks used the duct-cleaning business address on loans, corporate filings for the LLCs with the Nebraska Secretary of State’s Office often listed an Omaha law office as the address or listed no address.
State banking officials told the Examiner last week that an investigation was underway in what one source described as a “pretty sophisticated fraud.” It involved more than 20 banks, savings and loans and credit unions in Nebraska and Iowa.
Claims by the lending institutions against the estate of Marshbanks, who was found dead a month ago, already total more than $30 million. They may total $50 million by the time all of the claims are filed, according to court documents and those familiar with the loans.
A lawyer representing Marshbanks’ estate has declined to comment. A financial adviser who was involved in some of the loans has not returned multiple messages.
Nebraska Examiner is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Nebraska Examiner maintains editorial independence. Contact Editor Cate Folsom for questions: info@nebraskaexaminer.com. Follow Nebraska Examiner on Facebook and Twitter.
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