Former Eagle Mountain mayoral candidate Richard Culbertson and his wife, Kathleen, pleaded guilty on Thursday to fraud and racketeering charges.

Richard Culbertson pleaded guilty to three counts of communications fraud and one count of pattern of unlawful activity, all second-degree felonies. Richard Culbertson faces from one to 15 years in prison for each count, served consecutively or concurrently. If the sentences are consecutive, he faces a maximum sentence of 30 years. He was also ordered to pay restitution and a maximum fine of $74,100.

Kathleen Culbertson gave a tearful plea of guilty to three counts of communications fraud and one count of pattern of unlawful activity, all charges reduced to Class A misdemeanors. She faces a maximum of one year in jail for each count and $18,600 in fines, along with restitution.

The Culbertsons were charged in a mortgage fraud case in which they allegedly used their daughter's and son-in-law's names to buy a home.

The couple's attorney, Greg Skordas, said the plea deal is not new, and he believes the deal was worked out quickly so the Attorney General's office would be able to move forward with mortgage fraud charges in other cases. The office has developed a task force for mortgage fraud as a result of the spreading mortgage fraud cases in the state.

"The deal was arranged before they were charged," Skordas said.

The only changes in the charges were for Kathleen Culbertson, but Skordas said the change to misdemeanors was not a new deal either. She was intended to have lesser charges all along, but a mix-up left her with felony counts.

"Our deal was cut on hers too at the very beginning," he said.

Prosecuting attorney Neal Gunnarson said the differing degrees to the charges were due to the couple's level of involvement in the crimes. Richard Culbertson was thought to have been the primary actor in the incidents.

"Her activity was less, the involvement was less," he said.

The Culbertsons allegedly used Ashley and Nathan Barnum's names to obtain multiple home loans and also inflated their income on applications by more than $10,000 per month. One loan was earmarked for remodeling and landscaping work, but the $59,324 was pocketed by Richard Culbertson instead, according to court documents.

The Culbertsons also allegedly asked and paid several individuals to use their names and credit in order to buy property.

According to court documents, Richard Culbertson used his daughter's name, social security number and income to purchase his home in Eagle Mountain and forged her name on property documents for a home in Saratoga Springs. He also obtained an inflated appraisal for a second Eagle Mountain home in order to receive a higher loan.

The court documents also state that Richard Culbertson inflated Nathan Barnum's income by $14,000, and claimed an income of $11,000 per month for Ashley Barnum, who is a stay-at-home mom. On property documents for the Culbertson's Eagle Mountain home, the home was marked as a primary residence, with Ashley Barnum's signature.

Skordas said the Culbertsons' daughter and son-in-law were consulted on the plea deal, and they approved the agreement. The judge has leeway in determining the ultimate sentencing, but Skordas said he believes it is unlikely the pair will receive the maximum penalties. The sentence will be handed down Aug. 14, and was not part of the plea agreement.

"This was the deal they knew was coming down the pipe, but I can't imagine they were too happy about it," he said.

Eagle Mountain City Councilman David Lifferth said he is happy the Culbertsons took a plea deal and the city can move past the case. The longer the spotlight is on bad decisions made by public figures, the more it overshadows the good people of the city and their reputation.

"I'm just happy to put it behind us, and I hope we don't have to deal with anything like this in the future," he said.