Needham Loan Officer Sentenced in Million-Dollar Mortgage Fraud Scheme

A man and woman have been sentenced to prison for their role in a mortgage fraud scheme which resulted in losses of more than $1 million to lenders.

For several years through 2007, Michael St. Claire, of New York, and Monique Boucher, a loan officer at Needham’s Mass Lending, LLC, recruited so-called investors to purchase 12 condominium units in a South Boston building that St. Claire had purchased.

St. Claire and Boucher told the individuals they would not have to bring any money to the table, even though the HUD-1 Settlement Statements falsely stated that each of them paid substantial down payments.

Instead, those down payments came from funds owed to St. Claire’s real estate company for charges that in fact, did not exist.

Each recruit also was promised, and received, a significant payment after closing. The payment was for them to use however they saw fit. The fees were paid to the buyers by both St. Claire and Boucher.

Together, St. Claire and Boucher pocketed about $975,000 in profits from the loan proceeds. Eleven of the twelve properties went into foreclosure and sold at significant loss to the lenders.

St. Claire, 36, was sentenced to six months in prison, an additional four months of home confinement, and ordered to pay $1,257,945 in restitution, U.S. District Judge William G. Young ruled Monday. St. Claire previously pleaded guilty to conspiracy to commit wire fraud.

Boucher pleaded guilty to conspiracy to commit wire fraud and was sentenced to 10 months in prison. She was also ordered to pay restitution.