ARMONK, N.Y. - Prosecutors say a suburban New York Republican chairwoman has stepped down amid fraud allegations and raids on her home and party headquarters.

The former North Castle Republican chairwoman, Loronda Murphy, is also a real estate agent.

She was arrested in February on charges she stole money during a home refinancing in Suffolk County.

Westchester district attorney spokesman Lucian Chalfen said there were other alleged victims in Westchester. He said the raids occurred in Westchester on Sept. 10 as part of a joint investigation.

Suffolk prosecutors say Murphy, 46, of Armonk, stole more than $300,000 from a Smithtown couple after the couple had become involved with Murphy while refinancing their mortgage.

The Smithtown couple had refinanced their mortgage in July 2009 through IMC Mortgage, at 428 Main St. in Armonk, the Suffolk district attorney's office said. Murphy worked at Settle One Corp., at the same address.

The couple obtained a $393,750 mortgage from Wells Fargo. That amount was wired to a bank account in the name of Settle One Corp., where Murphy was an account holder, prosecutors said.

Murphy was to use $341,453.30 of the Wells Fargo mortgage to pay off the Smithtown couple's old mortgage with Bank of America, prosecutors said. The Bank of America never received the money, prosecutors said.

Prosecutors believe Murphy instead used the money to pay off other mortgages, the district attorney's office said.

Murphy's lawyer, Robert Gottlieb, said she denies the allegations.

Murphy pleaded not guilty on Feb. 5 in First District Court in Central Islip to one count of second-degree grand larceny, the Suffolk district attorney's office said Monday. She was released without bail and is due back in court on Oct. 7.

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