James Blose, a 56-year-old resident of Fairfield, has pleaded guilty in New Haven federal court to charges related to a long-running embezzlement scheme. The scheme involved multiple banks where he held significant roles, including General Counsel. The announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England; and Brian Tucker, Special Agent in Charge of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General, Eastern Region.
Court documents reveal that from around 2013 to January 2022, Blose worked as an attorney and occupied senior positions at Hudson Valley Bank and Sterling National Bank. After Webster Bank acquired Sterling National Bank in January 2022, Blose continued his role as Executive Vice President and General Counsel until February 2023.
During this period, Blose defrauded his employers by misappropriating funds through various methods. He retained portions of closing costs and legal fees from commercial loan transactions where The Bank was the lender. In real estate transactions where The Bank acted as the seller, he kept parts of sale proceeds for himself. To conceal his actions, Blose created false documents for some real estate deals.
Blose also used attorney trust accounts to cover personal expenses and transferred funds to business entities he controlled for personal use. Through these activities, he stole approximately $7.4 million from his employers.
Blose has pleaded guilty to one count each of bank fraud and engaging in illegal monetary transactions. These charges carry maximum prison terms of 30 years and 10 years respectively. He is currently released on a $250,000 bond pending sentencing on March 13 in Hartford.
The investigation was conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, along with assistance from financial crimes investigators at Webster Bank. Assistant U.S. Attorneys Michael S. McGarry and Ross Weingarten are prosecuting the case.