Editor’s note: This story has been updated to include new information about an FBI search associated with the case.
LINCOLN — An Iowa bank, one of the many victims in a purported bank fraud case, is asking for an emergency court hearing and the appointment of a special investigator to determine whether the estate of a Lincoln businessman has sufficient funds to pay back at least $44 million in loans.
Midstates Bank of Council Bluffs, in a court filing Friday, said that Aaron Marshbanks owes it $2.4 million for loans made in March of this year to purchase and rehabilitate homes.
The bank maintains that Marshbanks and his financial adviser, Jesse Hill, fabricated assurances that an investment account held $6 million to $7 million as security for the loans made to a Marshbanks entity, Big Bear Capital LLC.
‘Account does not exist’
“In fact, the investment account does not exist, and Midstates likely has no collateral securing its loan to Big Bear,” a lawsuit, filed Friday, stated.
Hill’s home, a $2 million acreage near Hickman, was the subject of a search Monday involving the FBI, the Examiner learned. FBI spokeswoman Amy Adams said that there were no arrests and that she could not comment further because it is an ongoing investigation.
Hill was recently sued by the Nebraska Bank of Commerce in connection with one loan he obtained with Marshbanks in March.
Hill fined in 2018
Also, in 2018, he was fined by state…
