Back to: Investigates
February 20, 2018 06:12 PM

Sioux Falls Bank And Former Employees Reach Settlement Over Customer Information

Sioux Falls

 KELOLAND News has an update on an investigation we first brought you in September.

A federal lawsuit filed by a South Dakota bank accusing one of its loan officers of stealing customer information has been settled out of court. 

As is the case with so many of these settlements, all the terms are confidential. 
But here's a reminder of what lead up to Plains Commerce Bank Customer information being compromised.  

Plains Commerce Bank accused loan officer Joshua Osborne and his associates, Jacob Hix and Michelle Blake, of taking the files of 20,000 customers when they all left to go to work for a competitor.  

According to court papers, the defendants in the case admitted to taking the banks' customer files.  

Their new employer, Marketplace Home Mortgage said there was no evidence the files were ever used or distributed by Marketplace, or evidence that the confidential information was ever released to the public. The files were returned to Plains Commerce.  

Plains Commerce did notify some of its customers at the time about what happened. 

Now an attorney for Plains Commerce Bank tells KELOLAND Investigates the confidential settlement between Osborne, his associates, and Plains Commerce Bank was reached in the last few weeks. The bank says it was able to verify none of the customer information was ever used and it has all been returned. 

The South Dakota Division of Banking says it has investigated the matter and is not taking any action. 

According to Marketplace's website Osborne is currently its Sales Manager and Senior Mortgage Loan Officer. 

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