Former Nebraska Liquor Control Commission Executive Director Hobert “Hobie” Rupe was accused of providing favors to two Lincoln strip clubs in exchange for free private dances and sexual favors.
Rupe, who served as executive director of the Liquor Control Commission from January 2004 until earlier this year, was named in a federal indictment that was unsealed Wednesday.
He is charged with three counts of honest services fraud, two counts of wire fraud, conspiracy to commit honest services fraud and extortion under the color of official right.
Rupe will have a first appearance in a federal court in Lincoln at 2 p.m. on Thursday.
According to the indictment, Brent Zywiec, a partial owner of both The Office and The Night Before Lounge, would provide Rupe with cash and free drinks and arrange free dances and sexual acts to be performed on the longtime public official.
Rupe would coordinate with Zywiec about when he planned to be at either business, the indictment states, and employees at The Office were known to keep an amount of money with a sticky note on them.
The sticky note would often read “COB” — cost of business — and have a dollar amount, the charging document indicated.
Zywiec, the indictment states, would also send photos of the dancers as well as their schedules to Rupe, who would later search their names in the Nebraska Criminal Justice Information System, a database used by law enforcement.
“The dancers’ schedule was of value to (Rupe) as he utilized it to know when to go to The Office and/or The Night Before so he could have access to his favorite dancers,” the indictment states.
According to an unsealed indictment, Rupe was accused of protecting The Office and The Night Before Lounge from law enforcement investigations while directing investigations into business competitors.
Rupe and Zywiec are also believed to have used a coded language to discuss money as well as whether the dancers would be willing to participate in sexual activities.
Zywiec, who is facing three counts of honest services fraud and conspiracy to commit honest services fraud, is alleged to have kept recordings of individuals “in compromised positions” with dancers at The Office.
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At least one video depicted Rupe receiving oral sex from a dancer, according to the indictment.
Federal investigators allege Rupe used his position as executive director of the Nebraska Liquor Control Commission to “materially influence the justice system” by steering investigations away from The Office and The Night Before Lounge to other businesses.
The indictment indicates Rupe and Zywiec planned to utilize their relationship to close rival clubs and increase business at The Office and The Night Before.
Rupe would also pass along “sensitive law enforcement investigative techniques and plans” to Zywiec to let him know law enforcement was investigating other clubs, according to the indictment.
“It was part of the conspiracy and scheme to defraud that (Rupe) would often turn a blind eye from clear violations that he knew were occurring at The Office and/or The Night Before,” the indictment reads. “Various violations that (Rupe) knew about went unreported to law enforcement, thus avoiding any citations that law enforcement may have given.”
The Nebraska Liquor Control Commission suspended Rupe without pay during a brief meeting in May a day after federal law enforcement agents served a search warrant on the commission’s office.
Commission Chairman Bruce Bailey said the suspension resulted from a “joint federal-state investigation into alleged criminal conduct” by Rupe, but did not provide details about the allegations.
“These alleged offenses relate to his fitness and ability to continue to serve in his present position,” Bailey said at the time.
Attorneys for Rupe and Zywiec did not immediately respond to requests for comment from the Journal Star.
Rupe was taken into custody and is being held at the Saunders County jail.
Zywiec was arrested and is currently being held in Saline County Corrections.
Journal Star reporter Lori Pilger contributed to this report.
This is a developing story. Return to JournalStar.com for updates.
Reach the writer at 402-473-7120 or cdunker@journalstar.com.
On Bluesky @chrisdunker.bsky.social
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