CT Attorney Stole $7.4M Over Decade During His Time As Banks' Lead Counsel: Feds

A Connecticut man who held powerful positions at several banks, including General Counsel and Executive Vice President, faces up to 30 years in prison for orchestrating a decade-long embezzlement scheme that defrauded his employers of more than $7 million, federal authorities said.

Webster Bank is one of the financial institutions James Blose admitted to stealing from over a 10-year period, authorities said.
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Josh Lanier

12/23/2024 12:09 a.m.

James Blose, 56, waived indictment and pleaded guilty in New Haven federal court to bank fraud and illegal monetary transactions on Friday, Dec. 20, per the US Attorney for Connecticut. His actions, spanning from 2013 to 2023, were uncovered after an extensive investigation by federal authorities, including the FBI and IRS.

According to court documents, Blose's scheme began during his tenure at Hudson Valley Bank and continued through its merger with Sterling National Bank. Even after Webster Bank acquired Sterling, Blose remained in a top leadership role, using his position to siphon funds undetected until his dismissal in February 2023.

Blose’s methods included retaining portions of closing costs and legal fees from commercial loans, pocketing proceeds from bank-owned real estate sales, and forging documents to cover his tracks. Investigators say he funneled stolen funds through attorney trust accounts and fake business entities he controlled, ultimately using the money for personal gain, according to the prosecutor.

In total, Blose embezzled approximately $7.4 million, betraying the trust of institutions that relied on his legal and ethical expertise.

Blose faces a maximum of 30 years in prison for bank fraud and an additional 10 years for illegal monetary transactions. He remains free on a $250,000 bond until sentencing on March 13 in Hartford.

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