FORT WORTH -- Tarrant County District Attorney Joe Shannon described Chekeelah Phelps as the ringleader of the biggest mortgage fraud rip-off his office has prosecuted.
Shannon and prosecuting attorney David Lobingier challenged a motion Wednesday that could place Phelps on probation after a 49-day prison stay.State District Judge George Gallagher told attorneys that he would issue a ruling today after he considered testimony in the motion for probation. While arguing that Phelps should receive more than 49 days of prison time, Shannon asked the court not to be guilty of the old saying: "We hang our petty thieves and honor our great ones."Phelps received a 10-year-prison sentence in November for her role in a $13 million mortgage fraud scheme that ended with convictions for 15 people. Eight of those convicted for their roles in the mortgage fraud scheme received probation or deferred adjudication and no prison or jail time, records from the district attorney's office show. Those who received either six-month or two-year prison terms played the most pivotal roles in the scheme, Lobingier said.After handing down Phelps' 10-year sentence, Gallagher said he would consider a motion to grant her shock probation if her attorney filed a motion within 180 days of her sentence.Shock probation is a program in which a defendant convicted of a misdemeanor or first offense felony charge can be released from prison by a judge within 6 months of incarceration. The program is intended to shock the defendant in the early days of prison life and prevent them from returning to criminal activity.Shannon argued that Phelps made a profit of nearly $1 million by providing mortgage companies with unqualified buyers using false information. Unqualified buyers provided false income, credit and employment information to mortgage companies that would finance homes at inflated prices. The offenders would pocket the proceeds.Meanwhile, many of the homes Phelps handled ended up in foreclosure, Shannon said.The Phelps family lived high-dollar lives with three luxury cars, frequent trips to Las Vegas and memberships in the Walnut Creek Country Club in Mansfield, according to witness testimony on Wednesday."You take the whole 48 days of confinement and divide it by the money she's made and it's over $20,000 a day," Shannon said. "I could get a whole line of people to come and sit in this jail for less."Steve Gordon, who represented Phelps, said his client has taken responsibility for her crimes and should not be held responsible for the American economic collapse."The reality is that no one has targeted the banks that encouraged this top down predatory practice," Gordon said.Quintin Phelps, Chekeelah Phelps' son, testified that his mother suffers from fibroid tumors and may have breast cancer. He said she needs to be released so she can receive medical attention.Mitch Mitchell, 817-390-7752Twitter: @mitchmitchel3Have more to add? News tip? Tell us
