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Man in Webster Bank Fraud Scheme Gets 1 Year in Prison

The third person involved in a Naugatuck woman's scheme to defraud Webster Bank nearly $6.2 million was sentenced Tuesday, and was also ordered to pay back millions of dollars in restitution.

 

The ex-husband of convicted Naugatuck woman, , was sentenced on May 1 in federal court to 12 months in prison for partaking in his ex-wife’s financial scam.

Apart from serving the one-year jail sentence, Kevin W. Caffrey, 47, of Wolcott, will also be subjected to three years of supervised release for his role in Susan Curtis’ scheme of stealing funds from the bank and funneling them into fake LLCs.

Judge Janet C. Hall also ordered that Caffrey pay roughly $4.3 million in restitution to Webster Bank, as well as $110,256 in back taxes to the federal government.

Curtis, formerly of East Hampton, worked in the property division of Webster Bank as a high-level administrator responsible for the purchase and leasing of the bank’s retail banking business. She married Caffrey in 2000, and in 2002, the pair formed New House LLC, a fake liability corporation that Caffrey was responsible for, federal officials said.

Curtis, with Caffrey’s help, falsely reported to Webster Bank that New House was a legitimate company, entitled to certain fees, despite the fact that the LLC never acted as a broker or a landlord in any real estate transactions. Curtis and Caffrey then coordinated it so the bank made 90 real estate payments to New House LLC between 2002 and 2006, federal authorities said.

The payments amounted to $4.3 million, federal officials said.

Caffrey had access to the LLC’s bank account and withdrew the stolen funds for himself and others, federal officials said. He also failed to report his income to the IRS, resulting in thousands of dollars in back taxes.

Curtis, who was sentenced in March to over eight years in prison, was also ordered to pay $6.2 million to Webster Bank and $617,000 to Bank of America for a fraudulent mortgage loan she obtained for a lakefront property on Day Point Road in East Hampton. She was also ordered to pay over $1.6 million in back taxes to the IRS.

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After the marriage split in 2006, Curtis continued her schemes with another husband, Gary Stocking Jr., whom she was married to when she was arrested in 2008.

with Curtis when he created Equity Realty, LLC, another fake liability corporation, which Curtis stocked with payments from Webster Bank, officials said.

Stocking is now serving a two-year sentence in federal prison after pleading guilty last year to charges of filing false tax returns and a failure to pay federal taxes.

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