Real estate lawyer pleads guilty in scam

A former Trumbull resident pleaded guilty in late December to defrauding People’s Bank of $1.2 million, and faces a likely prison sentence of four to five years and a fine of at least $1 million.

John M. Claydon Jr., a real estate attorney in Fairfield, admitted that in 2004 he diverted People’s Bank loans intended to refinance mortgages on houses owned by associates in Greenwich and Madison.

Claydon has repaid the Bridgeport-based bank $470,000, and his plea agreement requires him to repay the remaining $730,000.

Claydon is being held in custody in Suffield, and is scheduled to be sentenced March 12.