James Blose, a 56-year-old Fairfield resident, has been accused of masterminding a decade-long embezzlement scheme at several banks in Connecticut.
According to court documents and statements made in court, from approximately 2013 to January 2022, Blose was an attorney and held high-ranking positions, including General Counsel, at Hudson Valley Bank and Sterling National Bank. He then moved to Webster Bank, where he served as Executive Vice President and General Counsel and Corporate Secretary.
Between 2013 and February 2023, Blose defrauded his employers by retaining portions of closing costs and sale proceeds for himself. He also created false documents to cover up his theft and used his attorney trust accounts to make personal expenditures and transfer funds to accounts in the names of business entities he controlled.
Through this scheme, Blose stole approximately $7.4 million from his employers, including Hudson Valley Bank, Sterling National Bank, and Webster Bank.
Blose pleaded guilty to one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of engaging in illegal monetary transactions, which carries a maximum term of imprisonment of 10 years.
He is currently out on a $250,000 bond pending sentencing, which is scheduled for March 13 in Hartford.
The investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General. Financial crimes investigators from Webster Bank assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Ross Weingarten.
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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