Connecticut Attorney Pleads Guilty to $7.4M Bank Embezzlement Scheme

James Blose, a 56-year-old attorney from Fairfield, Connecticut, pleaded guilty in New Haven federal court to orchestrating a decade-long embezzlement scheme that defrauded his banking employers of approximately $7.4 million. 

FOX61 News, Hartford, Conn., originally reported the bank attorney embezzlement story, which was picked up by MSN. 

Blose, who waived his right to the indictment, admitted guilt to one count of bank fraud and one count of engaging in illegal monetary transactions. These charges carry maximum prison sentences of 30 years and 10 years, respectively. 

Misusing Attorney Trust Accounts for Personal Gain 

Webster Bank uncovered the scheme in February 2023, leading to Blose’s termination and subsequent federal investigation. 

Blose is currently out on a $250,000 bond and is scheduled for sentencing on March 13, 2025, in Hartford. 

The case was investigated by: 

• The Federal Bureau of Investigation (FBI) 
• The Internal Revenue Service – Criminal Investigation (IRS-CI) 
• The Federal Reserve Board’s Office of the Inspector General 
• The Bureau of Consumer Financial Protection. 

Investigators from Webster Bank also played a significant role in uncovering the fraud. 

Insider Threats: A Growing Concern for Banks 

This case underscores the need for robust internal controls and vigilant oversight, particularly when high-ranking employees hold significant financial responsibilities. It serves as a reminder to bankers of the potential risks posed by insider threats and the importance of strong fraud detection mechanisms.