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Former CorTrust branch manager sentenced to federal prison for loan scheme, ordered to repay $144k

Outtrim was given to ability to self-surrender by no later than Oct. 4, 2022.

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CorTrust Bank serves individuals and businesses in South Dakota and Minnesota, according to their website.
Erik Kaufman / Mitchell Republic
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ABERDEEN — A former Leola bank manager will serve just shy of two years in prison and pay nearly $145,000 in restitution after he profited from a loan scheme.

Gabe Outtrim, 43, of Glenham, served as the manager of CorTrust Bank's Leola branch for over a decade, according to his LinkedIn.

In August 2021, Outtrim was indicted by a federal grand jury of bank fraud, alleging that between September 2018 and February 2019, he executed a scheme to knowingly defraud the bank.

In his capacity as both manager and vice president of the branch, Outtrim had lending authority to approve loans up to $200,000 without having to send the loan application and supporting documentation to the bank’s loan committee for review and approval.

Outtrim made a nominee loan in the name of an unknowing bank customer and used the loan proceeds for his own benefit.

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After an investigation was conducted by the Federal Bureau of Investigation, Outtrim pleaded guilty to the charge in December 2021.

On June 27, Outtrim was sentenced to serve 21 months in federal prison followed by 5 years of supervised release. He was also ordered to pay restitution to CorTrust Bank in the amount of $144,050.94, as well as pay a special assessment of $100 to the Federal Crime Victims Fund.

Outtrim was given to ability to self-surrender by no later than Oct. 4, 2022.

A South Dakota native, Hunter joined Forum Communications Company as a reporter for the Mitchell (S.D.) Republic in June 2021 and now works as a digital reporter for Forum News Service, focusing on local news in Sioux Falls. He also writes regional news spanning across the Dakotas, Minnesota and Wisconsin.
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