Decision Reached In Federal Case Against Former Banker From Fairfield

FAIRFIELD, CT — A 56-year-old Fairfield man and former bank executive was sentenced Thursday to four years in federal prison for orchestrating a scheme over nearly a decade that defrauded banks he worked at of approximately $7.4 million, Acting U.S. Attorney Marc Silverman announced.

James Blose, 56 was sentenced by U.S. District Judge Robert N. Chatigny, and in addition to the 48-month prison sentence, Blose must also serve three years probation after his release. He pleaded guilty in December to one count of bank fraud and one count of engaging in illegal monetary transactions.

Prosecutors said the funds Blose embezzled were used to purchase a vacation home on Kiawah Island in South Carolina, fund construction of his Connecticut residence, and pay for luxury vehicles, jewelry, private jet charters, and country club memberships.

Blose served as General Counsel and held other senior positions at several financial institutions, including Hudson Valley Bank, Sterling National Bank, and later Webster Bank, which acquired Sterling in 2022, according to prosecutors. From 2013 until his termination in February 2023, Blose diverted bank funds for personal use through a variety of schemes.

Authorities said Blose misappropriated portions of legal fees and sale proceeds from commercial loan and real estate transactions, sometimes using falsified documents to conceal the theft. He was accused of funneling the money through attorney trust accounts and shell companies he controlled.

Judge Chatigny is expected to determine the amount of restitution at a later date.

Blose, who remains free on a $250,000 bond, is scheduled to report to prison on June 23.

The case was investigated by the FBI, IRS Criminal Investigation, the Office of the Inspector General for the Federal Reserve Board and the Consumer Financial Protection Bureau, with assistance from Webster Bank’s financial crimes team. It was prosecuted by Assistant U.S. Attorney Michael S. McGarry.