Former Webster Bank exec sentenced to 4 years in prison for embezzlement scheme that funded lavish lifestyle
James Blose
The former general counsel of Stamford-based Webster Bank has been sentenced to four years in prison in connection with an embezzlement scheme in which he pocketed about $7.4 million from multiple financial institutions.
Last year, James Blose, 56, of Fairfield, pleaded guilty to charges of bank fraud and engaging in illegal monetary transactions.
On Thursday, U.S. District Judge Robert N. Chatigny in Hartford ordered Blose to serve four years in prison, followed by three years of supervised release. He faced up to 40 years in prison.
The scheme occurred from about 2013 to February 2023. During that time, Blose, a former attorney, held high-level positions at Hudson Valley Bank, Sterling National Bank and Webster Bank, which acquired Sterling in January 2022.
Blose served as executive vice president, general counsel and corporate secretary at Webster Bank from about January 2022 to February 2023, when Webster Bank discovered the scheme and terminated him.
Blose stole from the banks in multiple ways, including in commercial loan transactions, by retaining portions of the closing costs for himself, according to authorities.
Also, when the banks sold property in real estate deals, Blose would keep portions of the sale proceeds for himself, authorities said. In some cases, he would create fake documents to conceal his activities.
As part of the scheme, Blose used his attorney trust accounts to make personal purchases, and to transfer funds to accounts in the names of business entities he created and controlled, and then used those funds for his own benefit, authorities said.
Blose used the millions he stole to purchase a vacation property on Kiawah Island in South Carolina, for construction of his Connecticut home, and for luxury vehicles, jewelry, private jet charters and several country club memberships, among other things.
The judge, Chatigny, will determine restitution after additional court proceedings.
Blose, who is released on a $250,000 bond, is scheduled to report to prison on June 23.
This investigation was conducted by the FBI, 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.
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