ARMONK, N.Y. – Former North Castle Republican Chairwoman Loronda Murphy was sentenced to 4 ½ to 13 ½ years in prison for her involvement in a residential mortgage fraud scheme, Westchester County District Attorney Janet DiFiore announced Tuesday.
Murphy, a resident of Greenwich, Conn., had faced a maximum of 25 years in late September, when it was discovered she had stolen more than $50,000 in loan money from five separate Westchester County homeowners in a Ponzi scheme with real estate attorney Scott Forcino, a New Rochelle resident, from April to June 2009.
Murphy was sentenced Tuesday on her September guilty plea to one count of first-degree residential mortgage fraud (a Class B felony) and one count of second-degree residential mortgage fraud (a Class “C” felony).
“This type of criminal activity is what contributed to the collapse of the nation’s residential housing market from which the housing sector is only now beginning to recover,” DiFiore said after Murphy was sentenced.
“These defendants, one a former town political leader and the other a real estate attorney, built a corrupt enterprise abusing the lending process and defrauding numerous victims, including the defendant’s own father,” she added.
Murphy and Forcino operated the home mortgage company Settle One Corp. at 428 Main St. in Armonk, in which they defrauded five homeowners who opened new mortgages on their homes by stealing portions of each loan. Murphy’s father was one of the victims.
Murphy is also required to pay $720,288 in restitution as part of her guilty plea. Forcino was sentenced Jan. 8 to five years of probation after his September guilty plea.
Click here to sign up for Daily Voice's free daily emails and news alerts.