LOCAL

Fraud charge yields 21 months in prison for former Leola banker

Alexandra Hardle
Aberdeen News

A former banker has been sentenced to 21 months in federal prison after he authorized loans in the name of a customer, but used the money himself. 

Gabe Outtrim, 42, of Glenham pleaded guilty to a count of fraud Dec. 7 at the federal courthouse in Aberdeen. On Monday afternoon, Federal Judge Charles B. Kornmann sentenced Outtrim to 21 months in prison in addition to five years of supervised release. He must also pay $144,000 in restitution.

More:$144,051 in restitution will be paid by former Leola bank manager who admitted to fraud

Outtrim was bank manager and vice president of CorTrust Bank in Leola when he issued the improper loans. The first was between Nov. 10, 2015, and March 20, 2019. The second was from Sept. 17, 2018, to Feb. 21, 2019.

The victim in this case was a friend of Outtrim's, and they had known each other since they were teenagers, according to testimony in court Monday.

Ann Hoffman, assistant U.S. attorney, questioned the victim, who said he had received a notice to meet with CorTrust about two suspicious-looking loans in his name. Before that meeting, the man said, on April 3, 2019, Outtrim visited the victim's home, admitted what he had done and asked his friend not to disclose it to the bank because he could to prison.

The victim testified that he lied to the bank, telling representatives that he had signed the notes because he didn't want Outtrim to get in trouble. Asked by Hoffman if Outtrim asked him to lie to the bank, the man said, "Yes, definitely."

He said he eventually told the bank what happened and cooperated with the FBI in taping a phone call in which Outtrim asked him if he remembered what they had spoken about when Outtrim visited his farm.

Outtrim's attorney says he was at 'rock bottom'

Outtrim's defense attorney, Robert Konrad, noted that he did not threaten the victim, nor was he physically intimidating. Outrim had reached "rock bottom," Konrad said.

While Konrad said Outtrim never asked the other man to lie, Kornmann said there is no other reason he would have lied to the bank. That amounts to obstruction of justice, Kornmann said.

More:Federal fraud charges filed against former CorTrust Bank manager, VP in Leola

Konrad argued for a lenient sentence, saying that Outtrim was going through a tough time in his life when he took out the loans. He was facing martial problems, his wife was deployed and he was drowning in debt, said Konrad. While Outtrim made a terrible mistake, he's not a terrible person, Konrad said.

He asked Kornmann to allow Outtrim to get through the busy season at New Evarts Resort, which he owns, before reporting to prison.

Outtrim says he lost his job, family

Mark Hahler, a branch manager for CorTrust, testified that he is not aware of Outtrim showing any remorse for his actions and said that CorTrust is still trying to rebuild trust within the Leola community.

Outtrim said he lost his job and family as a result of his actions. His parents have gone bankrupt, he said, as be broke down in tears. He apologized to his parents, his ex-wife. the victim and CorTrust.

Kornmann said he's known to be hard on white-collar crime, but decided to allow Outtrim to report to prison no later than Oct. 4 so he can attempt to make money at the resort and repay some of what he owes.

The maximum penalty on the federal fraud count Outtrim pleaded guilty to is 30 years in prison and a $1 million fine.