East Hampton Homeowner Gets 2 Years in Jail in Bank Fraud Scheme

The part owner of a $1 million home on Day Point Road on Lake Pocotopaug in East Hampton will spend two years behind bars for his role in a bank fraud in which he and his wife illegally got $1.9 million from Webster Bank.

Gary J. Stocking, 45, who lives in Naugatuck, was recently sentenced to 24 months in prison and one year supervised release for failing to pay $643,000 in taxes on the income he derived in the bank fraud, officials with the U.S. State’s Attorney’s Office said.

Stocking and his wife, Susan Curtis, who was also charged in the bank fraud, have both been behind bars since April of this year after the federal government revoked their bonds. Both have pleaded guilty to numerous charges in the case. Curtis is awaiting sentencing.

The federal government alleges that Curtis and Stocking used some of the Webster Bank money to buy a waterfront home in 2007 for $1 million at 35 Day Point Road on Lake Pocotopaug, as well as expensive boats, motorcycles and cars. The government now is seeking to foreclose on the lake house, which has sat vacant and deteriorating since Curtis and Stocking aborted a costly renovation of the project in 2008.

According to the government’s case, Curtis was employed in the Property Services Division of Webster Bank, which was responsible for, among other things, the acquisition and leasing of properties for Webster Bank’s Retail Banking business.  In approximately November of 2007, Stocking formed, at Curtis’ request, a limited liability company called “Equity Realty LLC,” and transferred to that company fraudulent real estate transaction fees from Webster Bank.  In fact, the government said, Equity Realty LLC never acted as a broker or landlord in any real estate transactions.

 Stocking has pleaded guilty to three counts of failing to file a return, supply information and pay federal income taxes. Curtis has pleaded guilty to two counts of bank fraud and four counts of filing false tax returns stemming from this scheme.  She awaits sentencing.