Coakley gets probation in Guldi case

The last defendant in former Suffolk Legis. George Guldi's massive mortgage fraud ring -- a Manhattan dominatrix -- pleaded guilty Monday.

Carrie Coakley, 40, entered guilty pleas to charges of second-degree grand larceny and scheme to defraud. In return, Suffolk County Court Judge James F.X. Doyle agreed to sentence her to 840 hours of community service and 5 years' probation.

It was a more lenient plea deal than Suffolk prosecutors once wanted, but Assistant District Attorney Thalia Stavrides said it was an appropriate end after Doyle gave other defendants, including Coakley's husband, Donald MacPherson, favorable plea deals.

"This was the logical solution," Stavrides said.

Participants in the mortgage fraud ring -- one of the biggest ever in Suffolk County, District Attorney Thomas Spota said -- stole $82 million from lenders by inflating purchase prices, fabricating documents and using straw buyers to make phony purchases and obtain mortgages. The defendants then would keep the loan proceeds and default on the loans.

Many of the straw buyers were recruited at The Dungeon, the downtown Manhattan sex club where Coakley was in charge, prosecutors said.

MacPherson pleaded guilty last month and will be sentenced to 4 to 12 years in prison. Guldi is serving 4 to 12 years on an insurance fraud conviction; he got 1 to 3 years for his role in the mortgage fraud.

SEE PHOTOSGeorge Guldi

Other defendants included straw buyers, attorneys and Ethan Ellner, a one-time friend of outgoing County Executive Steve Levy, who owned a title company.