Last partner in Webster phantom co. fraud sentenced

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A Wolcott resident who,  with his ex wife and her current husband, defrauded Webster Bank of $6.2 million was sentenced to a year and a day in prison for one count of bank fraud and one count of filing a false tax return.
According to the U.S. Attorney’s office for Connecticut, Kevin Caffrey, 47 was sentenced Tuesday in federal court in Bridgeport for his part in a six-year-long scheme that used false companies to collect payments from Webster’s property services division.
Caffrey’s former wife, Susan Curtis, who pleaded guilty to two counts of bank fraud and four counts of filing false tax returns in January of 2011, worked in the bank’s property service division, which leases and buys properties for Webster. According to court records, Curtis and Caffrey created a sham company New House LLC. in 2002 and had Webster pay it fees for phantom services.
After Curtis and Caffrey divorced, Curtis married Gary Stocking Jr. and created Equity Realty LLC. which the government says carried out a similar ruse.
Curtis was sentenced to 102 months in prison and Stocking, who also pleaded guilty, was sentenced to 24 months for his role in the scheme.
The court ordered the participants to make restitution to the bank and pay back taxes.
Categories: Banking, General, Regulatory
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Rob Varnon

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