Marc H. Silverman, Acting United States Attorney for the District of Connecticut, reported that James Blose, a 56-year-old resident of Fairfield, received a 48-month prison sentence after embezzling $7.4 million during his tenure at various banks, including Hudson Valley Bank, Sterling National Bank, and Webster Bank. U.S. District Judge Robert N. Chatigny delivered the sentence, which includes three years of supervised release, at a federal court in Hartford.
Court records detail Blose's activities from 2013 through January 2022 as he held high-ranking positions such as General Counsel at the aforementioned banks. His embezzlement was uncovered by Webster Bank, which acquired Sterling National Bank in January 2022. Blose's scheme involved fraudulently managing commercial loan transactions and retaining portions of legal fees, along with misappropriating proceeds from real estate transactions. His manipulations also included creating false documents to conceal his activities from his employers.
During his illicit activities, Blose allegedly channeled funds through his attorney trust accounts for personal use, directing them to business entities he created. The stolen funds financed a vacation property in South Carolina, contributed to his home construction in Connecticut, and supported luxury expenditures such as vehicles, jewelry, and private jet charters.
Blose's guilty plea on December 20, 2024, included charges of bank fraud and illegal monetary transactions, with his prison reporting date set for June 23. He is currently free on a $250,000 bond.
An investigation led by the Federal Bureau of Investigation, the Internal Revenue Service, and the Board of Governors of the Federal Reserve System with collaboration from financial crimes investigators at Webster Bank, unveiled Blose's fraud. Assistant U.S. Attorney Michael S. McGarry prosecuted the case. Judge Chatigny will determine the restitution in upcoming proceedings.