Hobert Rupe: Nebraska Liquor Fraud Guilty Plea in Federal Court

• Hobert Rupe, former executive director of the Nebraska Liquor Control Commission, pleaded guilty to honest services fraud and Hobbs Act extortion.
• Rupe provided protection to Lincoln strip clubs, owned by Brent Zywiec, in exchange for cash, sexual favors, and other benefits.
• He redirected state investigations to competitor clubs in Omaha and shared sensitive law enforcement information.
• Evidence included surveillance video of cash handoffs, "COB" sticky notes, and a compromising video from Zywiec's iCloud.
• Rupe faces up to 20 years in prison and a $250,000 fine for each count.

The conviction of a long-serving public official like Hobert Rupe on charges of honest services fraud and extortion highlights a serious breach of public trust and underscores the vulnerabilities within regulatory bodies.

Hobert Rupe, who served as the executive director of the Nebraska Liquor Control Commission (NLCC) for 21 years, from 2004 until his resignation in June 2025, has pleaded guilty in federal court to charges of honest services fraud conspiracy and Hobbs Act extortion under color of official right. This plea agreement, reached with prosecutors, comes 13 months after a grand jury initially indicted him. Rupe, a former state prosecutor, was accused of leveraging his position to provide illicit favors to Lincoln-area strip clubs in exchange for personal benefits, including cash and sexual acts.

Prosecutors detailed how Rupe allegedly insulated two specific establishments, The Office Gentleman’s Club and The Night Before Lounge, from law enforcement scrutiny. In return for this protection, Rupe received various forms of compensation, such as cash payments, complimentary alcoholic beverages, free entry to the clubs, and free lap dances. Furthermore, he was provided with sexual acts performed by club employees. As part of the arrangement, Rupe reportedly redirected state investigators away from these favored businesses and towards their competitors, specifically Club Omaha and Club 180 in Omaha, citing alleged liquor license violations. He also shared sensitive law enforcement investigative techniques and plans with Brent Zywiec, a co-owner of the protected clubs, to inform him about ongoing investigations into rival establishments.

The charges to which Hobert Rupe pleaded guilty carry significant legal weight. Honest services fraud conspiracy involves a scheme to defraud the public of its right to honest services through bribery or kickbacks, often by a public official. The Hobbs Act extortion under color of official right specifically prohibits interference with commerce by means of extortion, where a public official uses their office to obtain property from another with their consent, but that consent is induced by the wrongful use of actual or threatened force, fear, or under color of official right. In Rupe's case, the "color of official right" implies he used his authority as the head of the NLCC to demand or receive benefits.

As part of his plea agreement, seven additional counts from the superseding indictment will be dismissed. Rupe now faces a maximum penalty of up to 20 years in prison and a $250,000 fine for each of the two counts to which he pleaded guilty. While U.S. Magistrate Judge Jacqueline DeLuca presided over the recent proceedings, the final sentencing will be determined by U.S. District Judge Susan Bazis. Rupe's attorney, William F. McGinn, expressed hope for a sentence significantly less than the maximum, citing his client's cooperation and forthrightness throughout the process.

The investigation that led to Rupe's indictment and subsequent guilty plea uncovered compelling evidence of his misconduct. Lincoln police investigators initially stumbled upon surveillance video footage in 2024 while probing a double homicide at The Office. This video reportedly captured Brent Zywiec handing a bundle of cash to Hobert Rupe under a table, seemingly to avoid detection, with Rupe subsequently seen using the cash for a private session. Further evidence included "sticky notes" from employees of The Office, marked "COB" (cost of doing business), which allegedly tracked money provided to Rupe from the business safe.

Investigators also recovered a "compromising video" from Brent Zywiec's iCloud account, depicting Hobert Rupe receiving oral sex from a dancer. These pieces of evidence, along with witness accounts, painted a clear picture of the quid pro quo arrangement. The case also involved the indictment of three other individuals: Brent Zywiec, the strip club impresario, who was indicted alongside Rupe in September 2025, and Shane Zywiec and Dan Thomas, who were indicted in November of the same year.

The conviction of a long-serving public official like Hobert Rupe on charges of honest services fraud and extortion highlights a serious breach of public trust and underscores the vulnerabilities within regulatory bodies. Rupe's actions, which involved manipulating law enforcement resources and compromising the integrity of liquor license enforcement for personal gain, represent a significant instance of Nebraska public official misconduct. Such cases erode confidence in government institutions and the fairness of regulatory processes, particularly in highly regulated sectors like alcohol sales.

This outcome serves as a stark reminder of the potential for corruption within state agencies, even at the highest levels. The detailed evidence, including surveillance footage and internal club records, illustrates the brazen nature of the scheme and the extent to which a public official can exploit their authority. The legal proceedings against Rupe and his co-defendants emphasize the federal government's commitment to prosecuting those who engage in Nebraska Liquor Control Commission corruption and other forms of public malfeasance, reinforcing the principle that no one is above the law, regardless of their position.

This case underscores the critical importance for businesses, especially those in highly regulated industries like alcohol sales, to maintain strict ethical boundaries and compliance protocols when interacting with government officials. Lawyers and compliance officers should advise clients on the severe criminal penalties for honest services fraud and extortion, both for public officials and those who attempt to improperly influence them, reinforcing the need to avoid any appearance of impropriety in regulatory dealings.

Source: Reporting based on federal court documents and proceedings.