Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that James Blose, 56, of Fairfield, received a four-year prison sentence. The sentencing decision, made by U.S. District Judge Robert N. Chatigny in Hartford, is linked to a decade-long embezzlement scheme. This will be followed by three years of supervised release.
The court documents reveal that Blose was involved with Hudson Valley Bank and Sterling National Bank from 2013 to January 2022. When Webster Bank acquired Sterling National Bank in January 2022, Blose became Executive Vice President and General Counsel and Corporate Secretary there until his termination in February 2023.
During his tenure, Blose orchestrated a fraud scheme against the banks. He misappropriated portions of closing costs in commercial loan transactions and skimmed funds from real estate sales where the bank was the seller. To conceal his actions, he created false documents for some transactions. Blose exploited his attorney trust accounts for personal expenditures and funneled money into business accounts he controlled.
Blose accumulated approximately $7.4 million through his scheme. He used these funds for personal luxuries like a vacation property in South Carolina, construction of a home in Connecticut, luxury vehicles, jewelry, private jet charters, and country club memberships.
Restitution will be determined by Judge Chatigny in future court proceedings. Blose pleaded guilty on December 20, 2024, to bank fraud and illegal monetary transactions. He must report to prison on June 23.
This investigation was led by the FBI, the IRS – Criminal Investigation, 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 also contributed. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
