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Press Release

Bank Manager Charged with Embezzling $850K

For Immediate Release
U.S. Attorney's Office, District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, today announced a federal grand jury in New Haven returned an indictment yesterday alleging that STEPHEN CARBONELLA, 59, of Hamden, embezzled funds from his employer, Webster Bank Corporation, where he served as bank manager of the Orange branch office. 

CARBONELLA was arrested this morning.  He appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty and was released on a $200,000 bond.

According to the indictment and statements made in court, between approximately 2003 and 2017, CARBONELLA withdrew more than $850,000 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, and used the embezzled funds for his own purposes.  He also took steps to conceal his misconduct, including by forging signatures and falsifying documents.

The indictment charges CARBONELLA with one count of embezzlement by a bank officer or employee, an offense that carries a maximum term of imprisonment of 30 years.

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

Updated July 3, 2018

Financial Fraud