Former No. Castle GOP Chair Heads Off to Jail; Awaits Final Sentence
Former North Castle Republican Chairwoman Loronda Murhpy was taken into custody and sent to county jail on Tuesday morning to await the completion of her sentencing in connection with a mortgage fraud scheme.
Murphy, who appeared before Judge Barbara Zambelli, will return to court on March 26, said Lucien Chalfen, a spokesman for District Attorney Janet DiFiore. She will receive a jail sentence of at least four and a half years and as much as 13 1/2 years in for her role in the fraud. She could have faced up to 25 years in prison on the charges.
There are still outstanding issues to be ironed out, which accounts for the three-week delay, Chalfen said. He said there are various factors for Zambelli to consider that could determine the amount of prison time Murphy receives.
Murphy, who was also ordered to pay about $720,000 in restitution to her victims and the time of her plea, “has yet to pay a dime” of that sum, he said. She is not expected to come up with money after failing to pay anything for the past six months and now sitting in jail.
“The way it looks, it doesn’t seem like she’ll be coming up with any money,” Chalfen said.
Murphy, 48, pleaded guilty last September to first-degree and second-degree residential mortgage fraud, the top two counts in her 19-count indictment. Murphy operated the Armonk-based mortgage closing company Settle One Corp. which handled refinancings for homeowners. However, she stole portions of new loan money rather than paying off the pre-existing mortgages.
According to the indictment, Murphy prepared and submitted a series of false mortgage documents in connection with five closings that resulted in more than $1 million being deposited into Settle One’s account. The fleeced victims, which included her father, were defrauded of at least $50,000 each.
Also resolved on Tuesday has been the issue of her representation. When Murphy last appeared in court in late January, she was without an attorney. The court appointed White Plains attorney Paul Pickelle, the third lawyer to represent her in the matter since she was arrested in 2011. Pickelle was in court on Tuesday on Murphy’s behalf.
In January, Murphy attempted to rescind her guilty plea, which was not accepted by the court.
Her accomplice, former New Rochelle real estate attorney Scott Forcino, was sentenced on Jan. 8 to three years probation. Murphy also was supposed to be sentenced on that date until she told the court that she was without an attorney and hoped to change her plea.
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