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Phelps, a mortgage broker whose license has been withdrawn by a state agency, is considered the “linchpin,” Lobingier said. She apparently had close ties to two other defendants.
Phelps was indicted on charges of engaging in organized criminal activity in December 2004, accused of working with Bennett and three others to make false statements to obtain loans for property over $200,000.
Phelps was also indicted on three charges of money laundering related to possessing funds that were proceeds of criminal activity, namely making false statements to obtain property or credit valued at $20,000 to $100,000.
Those transactions occurred in 2004, 2005 and 2006, according to the indictments.
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