Lawsuit Against Marshbanks Associate Likely to Be Dismissed Amid Cooperation

LINCOLN — A lawsuit tied to the fallout from what officials call the largest bank fraud in Nebraska history now appears headed for dismissal.

The case involves Brandon Dallmann, an associate of the late Lincoln businessman Aaron Marshbanks, who died of a drug overdose in November 2022 just as details of his alleged $45 million bank fraud scheme were emerging. Dallmann had managed Marshbanks’ cryptocurrency investments and held access to the digital keys.

In efforts to recover assets for the dozens of financial institutions defrauded, the Marshbanks estate filed suit against Dallmann, alleging he withheld information about the crypto accounts. But attorneys now say the suit will likely be dismissed, as Dallmann has been cooperating in locating and verifying the investments.

Court filings revealed that shortly before his death, Marshbanks emailed Dallmann instructions to keep his crypto “rolling” for the benefit of his wife, along with access keys and an investment summary. Dallmann’s attorney, Nicole Jilek, has denied any wrongdoing, saying her client provided the requested information.

Marshbanks’ scheme involved using fraudulent loans from 19 banks and credit unions across Nebraska, Iowa, and beyond to fund aggressive investment strategies, real estate projects, and even construction of a multimillion-dollar home and “barndominium” near Lincoln. The investments collapsed in 2022, losing about 90% of their value, triggering the scandal.

The fallout shook Nebraska’s banking sector, raising questions about how Marshbanks — once known as a respected businessman, school board member, and community supporter — was able to deceive so many institutions. Attorneys expect only partial repayment of the debts through asset recovery.

Meanwhile, Marshbanks’ financial advisor, Jesse Hill, who falsely vouched for his client’s assets, faces sentencing in federal court on October 30. Hill could receive up to 30 years in prison and a $1 million fine. He has already agreed to forfeit his ownership shares in a Puerto Rican condominium and an airplane purchased with fraudulent funds.