Former Nebraska liquor commission director, Lincoln strip club owner indicted for fraud

LINCOLN, Neb. (KOLN) — The former executive director of the Nebraska Liquor Control Commission and the owner of two Lincoln strip clubs have been indicted on federal fraud charges.

The FBI announced the indictment Wednesday at a press conference at its Omaha office.

Court records show 58-year-old Hobert Rupe and 45-year-old Brent Zywiec are charged as co-conspirators in an 11-count federal indictment.

Rupe faces seven of those counts, ranging from wire fraud, honest services fraud, conspiracy to commit fraud, and Hobbs Act extortion.

According to the indictment, Rupe conspired with Zywiec to benefit his strip clubs in Lincoln, The Office and The Night Before Lounge, in exchange for access to dancers, free drinks and sexual favors.

Rupe would then use his influence in the commission to protect Zywiec’s liquor licenses and even point authorities in the direction of his competitors in Omaha, prosecutors allege.

That influence, court records show, allowed Zywiec to commit violations against his liquor licensing. In exchange for turning a blind eye to violations, Zywiec would put up the money, usually ranging between $100 and $500, for Rupe to receive dances, investigators wrote.

The indictment shows Rupe was also given free drinks, free access to the clubs and personal information for his favorite dancers. He would allegedly then use that information to look up any dancer’s potential criminal history using state resources.

Video surveillance from some private areas also show Rupe receiving sexual favors from dancers, prosecutors said.

During their relationship, Rupe and Zywiec also conspired to have rival clubs investigated, prosecutors allege. Rupe allegedly used his influence to have local law enforcement and the Nebraska State Patrol target Club Omaha and Club 180 — alleging the clubs violated their liquor licenses.

Rupe reportedly sent false allegations against the clubs to the Nebraska Attorney General’s Office with hopes of clearing the market for Zywiec.

The 19-page indictment goes on to show texts allegedly shared between the men. The two communicated regularly from 2022 to 2025, often talking about the dancers that Rupe liked. The texts also describe money handoffs between Zywiec, his employees and Rupe, authorities said.

Video surveillance also showed an alleged money handoff between Rupe and Zywiec on April 26, 2024. In the video, prosecutors said Zywiec can be seen handing Rupe a “bundle of cash” under a table to disguise what he was doing.

Rupe was later seen using the cash to pay for a private dance session, the indictment shows.

Prosecutors think the pair collaborated between 2021 and 2025, with Zywiec spending around $65,000 to stay out of trouble with the liquor commission.

Federal charges were filed against both men last week, and the indictment was made public on Wednesday. The indictment lists other “known” conspirators, but it’s unclear if more people will be charged in the case.

The Commission voted unanimously to suspend Hobert Rupe in May without pay in an emergency meeting, citing a joint federal-state investigation into alleged criminal conduct, according to Chairman Bruce Bailey.

The Nebraska Liquor Control Commission consists of three members, all of which are appointed by the governor and confirmed by the Legislature. Those members are also now part of the state’s new Medical Cannabis Commission.

Gov. Jim Pillen issued the following statement regarding this announcement:

“I am extremely disappointed at this failure of leadership at the Liquor Control Commission. The conduct alleged in the indictment unsealed today falls completely short of what Nebraskans expect of officials placed in positions of public trust. I am deeply grateful to the federal and state law enforcement who pursued this investigation and have worked so hard to deliver justice. Although the Liquor Control Commission is an independent agency, I will be doing everything in my power to ensure conduct and governance at the Commission meets expectations going forward.”

Rupe was appointed Executive Director by the Commission in December 2003 and began his duties on Jan. 15, 2004.

Prior to serving as Executive Director, he was an Assistant Attorney General for the State from May 1994 until January 2004.

He is admitted to practice before the Nebraska Supreme Court, The Federal District Court for Nebraska, The Eighth Circuit Court of Appeals and The United States Supreme Court.

The next hearing for the Nebraska Liquor Control Commission is set for Oct. 1 at 9 a.m. They will have to find a new director.