States Attorney's Office District of Connecticut
|January 28, 2010||
FORMER WEBSTER BANK EMPLOYEE, HUSBAND AND EX-HUSBAND CHARGED WITH DEFRAUDING BANK OF NEARLY $6.2 MILLION
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging three individuals with defrauding Webster Bank of nearly $6.2 million.
The indictment charges SUSAN A. CURTIS, 48, her husband GARY J. STOCKING, 43, both of Naugatuck, and CURTIS’ former husband, KEVIN W. CAFFREY, 45, of Wolcott, with one count of bank fraud and one count of conspiracy to commit bank fraud.
The indictment alleges that CURTIS was employed in the Property Services Division of Webster Bank with responsibilities that included negotiating and managing bank property leases where Webster Bank was a landlord or tenant. The indictment further alleges that CURTIS, STOCKING and CAFFREY established two companies called New House, LLC and Equity Realty, LLC, which CURTIS falsely represented to Webster Bank’s Vendor Management Department were landlords, an exempted category for due diligence and annual review.
As part of the alleged scheme, CURTIS submitted paperwork to Webster Bank’s Accounts Payable Department in which she falsely represented that New House and Equity Realty were due a fee in approximately 109 real estate related transactions involving 67 properties. As a result, Webster Bank made payments of approximately $5.04 million to New House and Equity Realty. In addition, the indictment alleges that CURTIS caused a landlord, who was a lessor of property leased to Webster Bank, to send approximately $703,620 in lease improvement payments directly to CURTIS. CURTIS and STOCKING are alleged to have altered the checks from the landlord to make them payable to Webster Bank c/o Equity Realty, and then deposited the checks to an Equity Realty account at another bank.
The indictment also alleges that CURTIS falsely represented to other landlords or their counsel, who were dealing with Webster Bank, that a $450,000 check for property improvements should be paid directly to Equity Realty c/o Webster Bank. CURTIS and STOCKING then deposited the check into the Equity Realty bank account.
Finally, the indictment seeks the forfeiture of an interest up to an amount of $456,790.79 in real property in East Hampton, Connecticut, three automobiles, two Harley Davidson motorcycles, a Steinway piano, and $746,977.03.
If convicted, each of the defendants faces a maximum term of imprisonment of 30 years on each count.
U.S. Attorney Dannehy stressed that an indictment is only a charge and is not evidence of guilt. The defendants are entitled to fair trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
U.S. Attorney Dannehy noted that the investigation into this alleged scheme is ongoing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
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