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Fairfield Lawyer Sentenced To Five Years In Federal Prison For Bank Fraud
Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that JOHN M. CLAYDON, JR., age 57, formerly of Trumbull, Connecticut, was sentenced today by United States District Judge Mark R. Kravitz in New Haven to 60 months of imprisonment, followed by three years of supervised release. On December 22, 2006, CLAYDON pleaded guilty to one count of bank fraud arising from his scheme to defraud a federally insured bank in connection with residential real estate loans.
According to documents filed with the Court and statements made in court, CLAYDON was a practicing attorney in Fairfield, Connecticut, who performed real estate closings. In pleading guilty, CLAYDON admitted that he was engaged by People’s Bank to act as a closing attorney in connection with the refinancing of mortgage loans on two properties owned by friends of his. At the time, CLAYDON was experiencing substantial financial problems relating to his law practice. In October 2004, when CLAYDON received checks from the bank as part of the refinancing transactions, he converted the money – more than $1.2 million – to his own use. Only after being confronted with his failure to use the proceeds as directed and repay the underlying loans did CLAYDON eventually pay the bank approximately $469,050. He has not repaid the balance. Read more at usdoj.gov.
Definition:
The act of a sheriff, constable, or other ministerial officer, in delivering back to the court a writ, notice, or other paper, which he was required to serve or execute, with a brief account of his doings.
Arraignment
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The court proceeding during which a person is informed of the charges against him or her.
Garnishment
Definition:
A statutory post-judgment proceeding in which a third party who holds property, money or credits belonging to the judgment debtor is required to surrender such property, money or credits (to the extent of the judgment) to the court or sheriff for application against the judgment awarded against the judgment debtor.
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