ARMONK, N.Y. – Loronda Murphy, the former North Castle Republican chair, pleaded guilty Tuesday to two felony counts of residential mortgage fraud and faces a maximum of 25 years in prison, according to Westchester County District Attorney Janet DiFiore.
Between April 2009 and June 2009, Murphy, a resident of Greenwich, stole more than $50,000 from each of five Westchester County homeowners by operating a home mortgage Ponzi scheme with real estate attorney Scott Forcino, a New Rochelle resident, the district attorney said. The two operated a home mortgage company titled Settle One Corporation in Armonk, where they convinced the five homeowners to open new mortgages on their homes, only to steal portions of the new loan, DiFiore said.
“These defendants built a corrupt enterprise abusing the lending process and defrauding multiple victims,” DiFiore said in a statement.
DiFiore said that one of the five victims was Murphy’s father.
Murphy will be required to pay $720,288 in restitution as part of her guilty plea.
Forcino, of New Rochelle, pleaded guilty to one charge of criminal facilitation, a misdemeanor, and faces a maximum of one year in jail. Forcino is also required to resign from the New York State Bar as part of his plea.
Both Murphy and Forcino will be sentenced on Jan. 8.