Nebraska ex-advisor faces five years in prison for role in $45 million bank fraud

An ex-investment advisor in Nebraska has been sentenced to five years in federal prison after pleading guilty to his role in a scheme that defrauded nearly 20 banks out of tens of millions of dollars, sending shockwaves through the state’s financial and faith communities.

Jesse Hill, 35, of Hickman, was sentenced Thursday by US District Judge Susan Bazis, who described Hill’s actions as “deliberate and calculated.” Hill’s involvement, the judge said, was “the exact polar opposite” of the reputation he had built as a family man and church leader. “This particular offense would not have been possible without you,” Bazis told Hill from the bench.

The case, one of the largest bank frauds in Nebraska’s history, centered on Hill’s partnership with Lincoln businessman Aaron Marshbanks.

As reported by the Nebraska Examiner, the two sought more than $45 million in loans from banks across Nebraska and western Iowa, purportedly for real estate ventures. In reality, much of the money was used to cover catastrophic investment losses and to pay off earlier fraudulent loans.

A press release from the US Attorney's Office for the District of Nebraska described how Hill, who operated First SOJO Capital Group as an RIA, produced fraudulent financial statements and presented them to banks as collateral. The statements falsely indicated that Marshbanks – anonymized as "individual 1" in the release – had sufficient assets to secure the loans. Hill would accompany Marshbanks to meetings with bankers, providing documentation and assurances that investigators later determined were fabricated.

"Hill would falsely represent that no other financial institution had a security interest in these fictitious accounts," the US Attorney's Office said.

The scheme began in 2020 and unraveled in late 2022, after Marshbanks was found dead in a Lincoln parking garage from a drug overdose. Marshbanks’ death triggered further scrutiny, revealing the extent of the fraudulent loans and the losses suffered by the banks. According to Judge Bazis, the banks ultimately lost more than $30 million, which wiped out earnings at some institutions and led to lost bonuses and raises for employees.

In court, Hill read a written statement apologizing to his family, his church, and others affected by his actions. “I’ll be working the rest of my life to repair my reputation and make restitution,” he said, relating that he “didn’t have the courage to challenge” Marshbanks as the scheme escalated and losses mounted.

Assistant US District Attorney Don Kleine, who prosecuted the case, called for a sentence of at least 97 months, describing it as “just punishment” for a conspiracy that targeted more than 20 financial institutions.

Hill’s attorney, Pat McInerny, argued for a shorter sentence, citing comparable bank fraud cases. McInerny also pointed to the outpouring of support from Hill’s community, describing it as “the clearest indication of what’s waiting for Mr. Hill when he’s released.”

This is not Hill's first time running afoul of state authorities. According to his IAPD record, Hill paid a $7,500 penalty in 2018 for selling unregistered securities and acting as an investment advisor without a registration. Reporting by the Nebraska Examiner indicates that penalty was paid to Nebraska Department of Banking and Finance, which accused him of converting investments for personal use and making false statements to investors.

As part of a plea agreement with federal prosecutors, Hill admitted to one count of conspiracy to commit bank fraud in exchange for the dismissal of other charges. He agreed to pay restitution and forfeit his interest in a $900,000 villa in Puerto Rico, a share in a multi-million-dollar Pilatus aircraft, and funds held in an investment account. It remains unclear whether Hill will have to sell his $1.2 million home near Hickman.

The search for assets to repay the banks continues, with a court-appointed receiver pursuing properties, investment accounts, and even cryptocurrency holdings linked to Marshbanks. The case has prompted reflection within Nebraska’s banking and faith communities about how such a large-scale fraud could have occurred.

Judge Bazis, in delivering the sentence, told Hill that Marshbanks’ death “left you holding the bag” for restitution and prison time, but emphasized that the sentence was appropriate given the deliberate nature of his actions.