Wednesday, Dec. 3, 2014 | 1:13 p.m.
A man and a woman from Texas who owned mortgage businesses in Henderson were sentenced to prison Tuesday for mortgage fraud.
Derrick Phelps, 46, was sentenced to 70 months in prison and Cynthia Phelps, 44, was sentenced to four years. The pair, who are married, were sentenced by U.S. District Judge James Mahan and ordered to pay around $31 million in restitution.
Both pleaded guilty in April to one count of conspiracy to commit bank fraud and seven counts of bank fraud.
Derrick Phelps owned Investors Realty and Enterprise Mortgage Services, both located in Henderson. The couple admitted in a plea agreement that they had defrauded banks for around $30 million through the use of false mortgage applications from 2003 to 2006.
Three others were also charged in the scheme. Linda Mack, Tai Keyster and Darryl Reese will go to trial on March 15.
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