The former executive director of the Nebraska Liquor Control Commission has been indicted in federal court on allegations he helped two Lincoln strip clubs in exchange for sexual favors, cash and other benefits.
Eugene Kowel, Special Agent in Charge, FBI Omaha Field Office, speaks during a press conference outside the FBI’s Omaha field office in Omaha, on Wednesday.
Hobert Rupe, executive director of the commission from January 2004 until his resignation in June, was indicted along with Brent Zywiec, part-owner of The Office Gentleman’s Club and The Night Before Lounge. Both clubs are in Lincoln.
Rupe faces multiple charges of honest service fraud, wire fraud and extortion. Zywiec faces similar fraud charges. If convicted, the two men could be sentenced to serve decades in prison.
According to a federal indictment filed Sept. 16 and unsealed Wednesday, Rupe allegedly received exotic dances, alcoholic drinks and cash at the two strip clubs. Rupe allegedly used the cash provided by Zywiec to pay the exotic dancers.
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In exchange, he allegedly shielded The Office Gentleman’s Club and The Night Before Lounge from criminal investigations and tipped off Zywiec to any law enforcement investigations of competing strip clubs, including Club Omaha and Club 180.
The indictment said Rupe reported allegations of criminal activity to law enforcement against those clubs in an attempt to benefit The Office Gentleman’s Club and The Night Before Lounge.
Rupe
Further allegations said Zywiec exempted Rupe from cover charges when Rupe visited the clubs and Rupe did not disclose gifts of over $100 from Zywiec’s clubs in financial interest statements to the Nebraska Accountability and Disclosure Commission as required by law.
The alleged criminal activity involving Rupe and Zywiec took place from around Jan. 1, 2022, to May 28, 2025. Before his resignation, Rupe was suspended from his executive director position in May once the allegations came to light via a search warrant.
Eugene Kowel, special agent in charge at the FBI Omaha Field Office, said at a press conference Wednesday afternoon the investigation into Rupe and Zywiec, along with others, lasted more than one year.
He added FBI agents took Rupe and Zywiec into custody in Lincoln and Fairbury, respectively, Wednesday morning. Kowel spoke at the press conference along with acting U.S. Attorney Lesley Woods and Nebraska Attorney General Mike Hilgers.
“This type of corruption strikes at the very heart of government,” Kowel said. “It erodes our confidence. It undermines the strength of our democracy. Public corruption impacts everything in our lives.”
Hilgers said Rupe “absolutely violated his oath to Nebraskans.”
“Nebraskans expect that their public servants give them honest services, that they act with integrity and follow the oath of office that they swear to uphold,” Hilgers said. “Unfortunately, that’s not what happened here.”
The Office Gentlemen's Club, 640 W. Prospector Court. One of the partial owners of the club was indicted on Wednesday.
Nebraska Gov. Jim Pillen said in a statement that Rupe’s alleged conduct “falls completely short of what Nebraskans expect of officials placed in positions of public trust.”
“I am extremely disappointed at this failure of leadership at the Liquor Control Commission,” Pillen said. He thanked federal and state law enforcement agencies.
Pillen added he will do “everything in my power to ensure conduct and governance at the Commission meets expectations going forward,” even as he acknowledged the Liquor Control Commission is an independent agency.
Rupe is being held at the Saunders County Jail. Zywiec is currently being held in Saline County Corrections.
Attempts to reach representatives from The Office and The Night Before were unsuccessful. Attorneys for Rupe and Zywiec did not immediately respond to requests for comment.
Rupe was allegedly caught on surveillance footage performing some illegal activities. One video, retrieved from Zywiec’s iCloud account, allegedly shows Rupe receiving oral sex from an exotic dancer. Other videos allegedly show Zywiec and a strip club employee giving cash to Rupe, who would then use that cash to pay for private “VIP” sessions.
The Night Before Lounge, 1035 M St. in downtown Lincoln.
Rupe has also been charged with extortion. The charge stems from when he allegedly illegally demanded $65,000 from a business owner so the owner could retain the liquor license with Rupe’s assistance. The business owner would not have been qualified to retain the liquor license without Rupe’s assistance, according to the indictment.
Bruce Bailey, chairman of the Liquor Control Commission, said Wednesday afternoon that he had not had a chance to review the indictment since it was unsealed. He said he was eager to move forward and thanked the commission staff for its diligence while working without a permanent director since May. The next director of the commission will start Oct. 1.
LeAnna Prange, interim executive director of the Liquor Control Commission, said in a statement that the commission was unaware of Rupe’s alleged illegal activities until May.
“I want to reiterate this was a single-source investigation on Hobert Rupe and should not be a reflection on anyone who is employed at NLCC,” Prange said.
World-Herald staff writer Josh Reyes contributed to this report.
