A federal grand jury in Nevada indicted a Katy couple and Las Vegas woman in a multi-million dollar mortgage fraud scheme, officials said Wednesday.

Derrick Phelps, 44, his wife, Cynthia Phelps, 34, and Linda Mack, 49, are charged with seven counts of bank fraud along with conspiracy to commit bank fraud, mail fraud and wire fraud, officials with the Department of Justice said.

Federal prosecutors said they devised a scheme to defraud banks and other federally insured financial institutions by using straw buyers, inflated housing values and false mortgage applications.