Longtime employee pleads guilty to defrauding bank, customers

KENT — Betty Pacocha, 75, a Kent resident, pleaded guilty July 21 to bank fraud before United States District Judge Mark Kravitz in New Haven.

According to a press release issued by Tom Carson from the United States Department of Justice, Pacocha started with the NewMil Bank at 19 Main St.  in New Milford in 1961.

Over the next 35 years, Pacocha was employed as a teller, branch manager, vice president, compliance officer, executive vice president and secretary of the bank.

She continued to work at the bank when it merged with Webster Bank in October 2006.

During her plea in court, she revealed that during her years at the bank, she defrauded the company by removing funds from customer certificate of deposit (CD) accounts and converting the funds to her own use.

She achieved this by either completely closing the CDs or reducing them in value. Pacocha also kept detailed records of her activities in order to track when each CD was nearing maturity. She would then restore the balance of the CD with funds from other accounts, to keep perpetuating the scheme.

The government believes Pacocha has defrauded NewMil Bank/Webster Bank of $722,817.18.

Pacocha has made restitution to the bank from her retirement pension.

Judge Kravitz has scheduled sentencing for Friday, Oct. 9, at  the District Court in New Haven.

Pacocha faces a maximum sentence of 30 years in jail and a fine of $1.4 million.

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