To say I was shocked to hear about the indictment against former Executive Director of the Nebraska Liquor Control Commission, Hobert Rupe, is an understatement. It is alleged that Mr. Rupe took bribes from a Lincoln, Nebraska strip club in the form of free cover charge, free drinks, and sexual acts. From the allegations, it seemed like this occurred regularly and he obtained what he wanted on demand.

Hobie, as we all know him, has been a regular at liquor conferences for years. He hosted a conference in Omaha, which I spoke at, and he put on a good conference, but in comparison to what he was doing in his spare time, our conference agenda seemed boring, he must have been holding back on us.

The Nebraska situation is sad and the allegations lead to people losing their faith in government. But it also leads to a lot of unanswered questions. How did it all start and did one small thing lead to a complete unraveling of the situation?

As a former regulator who was retaliated against for reporting unethical behavior in my department and getting fired for it[1], I can tell you the regulator always needs to be careful. The regulator is always in the tough position of being friendly and respectful to the industry, but at the same time being firm in their principles.

Regulators also need to be careful of perception and where the line is drawn. And sometimes figuring out that line is difficult. Can you have dinner with a party your regulating, can they buy you a drink? There is no simple answer to these questions and your code of conduct does not cover every situation. It is obvious that getting cash from someone, to pay someone else to go down on you, when you demand it, is clearly wrong. But life is not that simple.

My suggestion to regulators is if you are going to an event, discuss with your ethics officer beforehand and think through scenarios you may encounter at a conference or event. Something you may think is no big deal could lead to a violation of your ethics code.

Knowing the gray areas well beforehand is recommended. If you unknowingly violate a law and acted with no bad intent, it will not matter. And if you are fired because of unknowingly violating an ethics rule, the media may publish it, the media doesn’t care, you are a government official. And rightly or wrongly, a government official is a prime target.

Further, as state regulators and this maybe the hardest part, keeping a balanced approach among the competing interest is important.  There are extreme situations like the Virginia ABC, where the CEO was the President of the Virginia Wine Wholesalers Association before taking his role, and runs an agency on the wholesaler’s behalf.

By keeping a balanced approach, the regulator can be above any compromised position.

I was a state regulator and have met many state regulators. They are for the most part, decent and honest people, who try to do the right thing and be fair.

It is sad when allegations come out against a state liquor regulator, as it makes people lose confidence in the government.

Clearly, there were lines crossed in this case that are wrong. But what I hope is never to see a regulator get caught up inadvertently in some gray area wrong doing and have their reputation ruined.

[1] After two depositions in my case, the state folded in and asked for settlement, it wasn’t going to go well for them.