Cornhusker State News

The federal Grand Jury for the District of Nebraska has indicted Hobert Rupe, former Executive Director of the Nebraska Liquor Control Commission, and Brent Zywiec, a partial owner of two Lincoln clubs. The charges relate to alleged honest services fraud. Both men were arrested on September 24, 2025.

According to the indictment, Rupe and Zywiec are charged with conspiracy to commit honest services fraud and three counts of honest services fraud. Rupe faces additional charges: two counts of wire fraud and one count of Hobbs Act extortion under color of official right. The alleged activities occurred between January 1, 2022, and May 28, 2025. Each charge carries a maximum penalty of up to 20 years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment per count.

Prosecutors allege that Rupe violated his oath by conspiring with club owners—including Zywiec—to receive personal and financial benefits in exchange for providing illegal assistance to their establishments. These benefits allegedly included commercial sex acts, cash payments, and complimentary VIP dances or drinks at the clubs. In return, Rupe is accused of failing to report or investigate liquor license violations at these venues and misusing law enforcement resources against competitors in Omaha.

Rupe is also accused of not disclosing these benefits on state accountability forms. Another count alleges that he extorted $65,000 from a business owner in exchange for helping retain a liquor license that otherwise would not have been granted under state regulations.

United States Attorney Lesley Woods commented on the case: “Public corruption undermines the trust of all Nebraskans in their officials.  The citizens of Nebraska are the primary victims of this case.  The Executive Director of the Liquor Control Commission should be the official who polices establishments like the ones identified in the Indictment for the benefit of public safety.  Furthermore, allowing individuals who should not have liquor licenses to obtain or retain those licenses is a dangerous abuse of power. There are good public safety reasons for many of the rules that govern liquor licenses, and the Executive Director of the Liquor Control Commission should serve as the public guardian against those threats to public safety, not be the enabler of them.  Mr. Rupe is alleged to have violated that trust and allowed himself to be unlawfully influenced in the execution of those duties. This investigation was a joint effort with the Nebraska Attorney General’s Office and the Federal Bureau of Investigation, and the United States Attorney’s Office is grateful to those partners for their tireless efforts on this critical investigation.”

Indictments are charging documents containing accusations; defendants are presumed innocent until proven guilty.

The Federal Bureau of Investigation and Nebraska Attorney General’s Office investigated this case.