Connecticut Bank Reports It Detected & Halted Embezzlement Involving As Much As $11 Million

Webster Financial Corp., based in Waterbury, Connecticut and the parent of Webster Bank, reported Tuesday that "internal controls had detected and halted an elaborate embezzlement scheme" involving an unnamed subcontractor. According to Webster's announcement, the subcontractor provides "bulk cash processing on behalf of a major vendor of Webster." The bank reported that it had repaid some of the loss and that it had an insurance policy that would cover the rest of its exposure which could be as large as $11 million. It is unclear whether this reported case is related to one revealed last month involving Webster wherein a former Webster Bank employee, her husband and her ex-husband were indicted on federal charges of bilking the bank out of $6.2 million. In that case, Susan A. Curtis, 48, of Naugatuck; her husband, Gary J. Stocking, 43, also of Naugatuck; and Curtis' ex-husband, Kevin W. Caffrey, 45, of Wolcott, were each charged with one count of bank fraud and one count of conspiracy to commit bank fraud.

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Read the Webster press release here.