This is how Jon helped us out if he could? By sending bad checks.
Jon is that your signature or did someone force you to send out bad checks? I assume that is not your fault either?
Keep the rent they did.
Tuesday, December 23, 2008
Wednesday, October 8, 2008
Happy Halloween?
"My Dad said Mr. Helgason and Mr. Balko did this to our neighborhood. Do you think they might have candy in their neighborhood?"Friday, September 12, 2008
Sentencing
According to the US District Probation Office- District of Minnesota, no sentencing date has been set. They did say that it could be sometime in December, but that was not definite.Thursday, June 12, 2008
Abandoned Houses Invite Crime in Minneapolis
As a crime prevention specialist for the Minneapolis Police Department, Tim Hammett knows firsthand the toll that the mortgage foreclosure crisis has taken on the city's North Side. Sometimes it even follows him home.
One day not long ago, Hammett pulled up in front of his house to find a woman ripping the aluminum siding off the empty house across the street, which, like hundreds of North Minneapolis properties, was in foreclosure.
The troubles have been greatly aggravated by an unusual amount of mortgage fraud, says Assistant U.S. Attorney Joseph Dixon. In one of the most notorious cases, a suburban real estate company, T.J. Waconia, bought numerous houses throughout North Minneapolis, using fraudulent appraisals, federal officials say. The firm's founders pleaded guilty to mail fraud this year, and 141 of its houses were placed in the hands of a court-appointed administrator.
Those houses now sit empty, contributing to the huge glut of abandoned properties and compounding the crime problem.
Those houses now sit empty, contributing to the huge glut of abandoned properties and compounding the crime problem.
If not sealed up adequately, many of these vacant properties get taken over by gangs, who use them for drug-dealing and prostitution, says Sgt. Richard Jackson of the Minneapolis Police Problem Properties Unit.
"It brings a lot of the criminal element into the area," Jackson says. "People have to travel in just to get their dope, or they have to travel here to get their prostitution."
In many cases, vandals strip the houses of built-in furniture, appliances and copper piping. At least three vacant North Minneapolis houses have exploded in flames because thieves took the pipes but neglected to shut off the gas, Jackson says.
Friday, April 18, 2008
Helgason Balko Plead Guilty
Two men behind one of the largest mortgage fraud schemes to hit the Twin Cities area pleaded guilty to mail fraud Thursday in federal court.
Thomas J. Balko and Jonathan E. Helgason, co-owners of TJ Waconia, pleaded guilty to a three-year scheme that involved 162 properties and $35 million in mortgages.
Most of those properties were in north Minneapolis where a city lawsuit charges that the men and their firm laid waste to three neighborhoods, leaving blocks dotted with vacant, deteriorating housing. They turned 141 of the properties over to a court-appointed receiver this week.
Balko, 37, of Rogers, and Helgason, 45, of Chisago City, entered their pleas to U.S. District Judge Joan Ericksen under a deal negotiated between their attorneys and the U.S. attorney's office, represented by prosecutor Joseph Dixon.
"I'm delighted," said City Council President Barbara Johnson, who conveyed initial neighborhood suspicions about the firm to the FBI.
"I look forward to gathering some victim-impact statements for sentencing from the community," she said.
Helgason faces a recommended sentence of up to about 12 1/2 years, while Balko faces a sentence of up to about 10 years. The sentence will depend on the court's determination of how much money was lost and how many people the pair victimized. The government contends the scheme cost more than 50 victims as much as $20 million, figures the pair dispute. Helgason's proposed sentence is greater because he was a licensed real estate agent, but he's fighting to have that factor excluded from consideration.
The government estimates the firm will be fined between $10.8 million and $21.6 million, but restitution to victims takes precedence. Those are believed to be investors who bought properties in the scheme, some of whom have sued TJ Waconia and the lenders.
Neighborhood spotted scheme
The scheme was initially uncovered by neighborhood association staffers in the Folwell and Webber-Camden areas. "It's sort of a vindication of our ability to recognize fraud when we see it," said Roberta Englund, neighborhood staff chief. She said lenders in the scheme also need to be held accountable for making bad loans.
Here's how the scheme worked: From 2005 to 2007, the pair worked through a variety of companies to buy properties and shortly resell them to investors for $20,000 to $60,000 more. Most investors didn't even inspect the properties, the plea agreements said.
Investors were told they were lending their credit to the company for a payment of $2,500 upon closing and added payments in two years when the firm would repurchase the property. The investors were straw buyers because they held the property in name only, and the firm fronted them money for the purchases. The firm made payments to investors so they could pay the mortgages on the properties. Ultimately the scheme collapsed, leaving the investors owing mortgages that exceeded the property value. Most of the properties are in foreclosure.
Further prosecution possible
The plea agreements do not require Balko and Helgason to cooperate in further investigations by the FBI, postal inspectors or tax investigators. But they hint at another possible avenue of prosecution by alleging that the men worked with others to present fraudulent loan applications to lenders that overstated investor incomes.
Neither man offered any comment on the scheme during their court appearance. "They're eager to make good on this situation," Allan Kaplan, Balko's attorney, said after the hearing.
Steven Meshbesher, who represented Helgason and the firm, noted that the defendants complied with a city request to turn over the north Minneapolis properties as part of the city lawsuit.
"This was not his intention,'' Meshbesher said of his client. "Things developed that he did not intend to do. He feels bad about it.''
Steve Brandt • 612-673-4438
Thomas J. Balko and Jonathan E. Helgason, co-owners of TJ Waconia, pleaded guilty to a three-year scheme that involved 162 properties and $35 million in mortgages.
Most of those properties were in north Minneapolis where a city lawsuit charges that the men and their firm laid waste to three neighborhoods, leaving blocks dotted with vacant, deteriorating housing. They turned 141 of the properties over to a court-appointed receiver this week.
Balko, 37, of Rogers, and Helgason, 45, of Chisago City, entered their pleas to U.S. District Judge Joan Ericksen under a deal negotiated between their attorneys and the U.S. attorney's office, represented by prosecutor Joseph Dixon.
"I'm delighted," said City Council President Barbara Johnson, who conveyed initial neighborhood suspicions about the firm to the FBI.
"I look forward to gathering some victim-impact statements for sentencing from the community," she said.
Helgason faces a recommended sentence of up to about 12 1/2 years, while Balko faces a sentence of up to about 10 years. The sentence will depend on the court's determination of how much money was lost and how many people the pair victimized. The government contends the scheme cost more than 50 victims as much as $20 million, figures the pair dispute. Helgason's proposed sentence is greater because he was a licensed real estate agent, but he's fighting to have that factor excluded from consideration.
The government estimates the firm will be fined between $10.8 million and $21.6 million, but restitution to victims takes precedence. Those are believed to be investors who bought properties in the scheme, some of whom have sued TJ Waconia and the lenders.
Neighborhood spotted scheme
The scheme was initially uncovered by neighborhood association staffers in the Folwell and Webber-Camden areas. "It's sort of a vindication of our ability to recognize fraud when we see it," said Roberta Englund, neighborhood staff chief. She said lenders in the scheme also need to be held accountable for making bad loans.
Here's how the scheme worked: From 2005 to 2007, the pair worked through a variety of companies to buy properties and shortly resell them to investors for $20,000 to $60,000 more. Most investors didn't even inspect the properties, the plea agreements said.
Investors were told they were lending their credit to the company for a payment of $2,500 upon closing and added payments in two years when the firm would repurchase the property. The investors were straw buyers because they held the property in name only, and the firm fronted them money for the purchases. The firm made payments to investors so they could pay the mortgages on the properties. Ultimately the scheme collapsed, leaving the investors owing mortgages that exceeded the property value. Most of the properties are in foreclosure.
Further prosecution possible
The plea agreements do not require Balko and Helgason to cooperate in further investigations by the FBI, postal inspectors or tax investigators. But they hint at another possible avenue of prosecution by alleging that the men worked with others to present fraudulent loan applications to lenders that overstated investor incomes.
Neither man offered any comment on the scheme during their court appearance. "They're eager to make good on this situation," Allan Kaplan, Balko's attorney, said after the hearing.
Steven Meshbesher, who represented Helgason and the firm, noted that the defendants complied with a city request to turn over the north Minneapolis properties as part of the city lawsuit.
"This was not his intention,'' Meshbesher said of his client. "Things developed that he did not intend to do. He feels bad about it.''
Steve Brandt • 612-673-4438
Monday, March 10, 2008
Legal Sentencing on Mortgage Fraud
People have posted many times wondering how much time Jon and Tom and whoever else was involved will get if convicted. It was amazing to me how many indictments and convictions are out there. I am not commenting on how much time I think they should receive if convicted, but it does not look favorable for them.
Basically it looks like the law allows the following sentences:
The conspiracy to commit mail and wire fraud conviction carries a maximum statutory term of imprisonment of five years, without parole.
Each of the wire fraud and mail fraud convictions carry a maximum penalty of 20 years imprisonment, without parole.
One article claimed this:
Houston Texas Man Convicted of Mortgage Fraud, Could Face Almost 200 Years in Prison Without Parole
Two cases listed below are also straw/interim buyer schemes where the convicted claimed they would cover all the costs, rent out the properties, etc.
The last link contains many stories.
http://houston.fbi.gov/dojpressrel/pressrel07/ho07262007.htm
http://www.bizjournals.com/atlanta/stories/2008/02/11/daily21.html
http://www.mortgagefraud.org/display/ShowJournal?moduleId=78225&categoryId=5901
Basically it looks like the law allows the following sentences:
The conspiracy to commit mail and wire fraud conviction carries a maximum statutory term of imprisonment of five years, without parole.
Each of the wire fraud and mail fraud convictions carry a maximum penalty of 20 years imprisonment, without parole.
One article claimed this:
Houston Texas Man Convicted of Mortgage Fraud, Could Face Almost 200 Years in Prison Without Parole
Two cases listed below are also straw/interim buyer schemes where the convicted claimed they would cover all the costs, rent out the properties, etc.
The last link contains many stories.
http://houston.fbi.gov/dojpressrel/pressrel07/ho07262007.htm
http://www.bizjournals.com/atlanta/stories/2008/02/11/daily21.html
http://www.mortgagefraud.org/display/ShowJournal?moduleId=78225&categoryId=5901
Saturday, March 1, 2008
Community Responsibility
There have been bloggers that talk about the fact that North Minneapolis was in bad shape before Jon and Tom arrived on the scene. Thus what is the big deal what they did? Someone also stated that we have put millions of dollars into these neighborhoods and nothing changes.
How this makes what they did acceptable absolutely baffles me. How short sighted can someone be?
We spend millions trying to feed the hungry all over the world and there is still hunger. Would that make it acceptable to steal what rice and grain they have available?
We spend millions trying to eradicate child pornography and it is still a major industry. Would that make it acceptable to buy child pornography?
We spend millions on preventing domestic violence, yet women and children are still abused in this country everyday. Would that make it acceptable to take advantage of these victims in their time of need?
If you still do not believe that the Helgason's and Balkos' did not harm North Minneapolis and that boarded up houses are not an issue. Please read below
Minneapolis revokes rental licenses from 45 properties
by Brandt Williams, Minnesota Public Radio
February 29, 2008
St. Paul, Minn. — The Minneapolis city council has revoked the rental licenses on 45 properties located in north Minneapolis.
Council members say the properties were owned by TJ Waconia, an investor group under a federal flipping investigation. All but nine of the properties have been abandoned and city officials say they believe the company owns perhaps 200 properties in Minneapolis.
Council member Don Samuels represents a section of North Minneapolis particularly hard hit by the rash of mortgage foreclosures.
He said the people involved in the alleged scam are part of a crime problem that most residents aren't aware of.
"The young men who sell drugs on the corner get such ire from us, because we see them everyday. We don't see these characters," Samuels said. "They're just names on a page. And yet they create and wreak way more havoc, than 10 drug dealers per house in this case."
Tuesday, February 26, 2008
Tuesday, February 19, 2008
Sunday, February 17, 2008
Where is the Money?
Per the request of IPD, I have removed my comments as it relates to their site. Not because they threatened to sue this blog, but becuase knowing what it is like to be a victim I would never want to cause harm to anyone.
I know someone is out there that says I remove posts at will. But I have removed this one because I felt it was the right thing to do.
Victim T
I know someone is out there that says I remove posts at will. But I have removed this one because I felt it was the right thing to do.
Victim T
Friday, February 1, 2008
Why is this so personal?
I know some of you are wondering why is Victim T taking this whole situation so personal? I have even been called obsessed. I think a lot of people think they took a risk and should just kiss their money and credit good-bye and get over it. We probably would do that just to get on with our lives, but it is personal to me.
We were never involved in the North Minneapolis properties.
We grew up in the city of Minneapolis. My father taught at North High School for 30 years. Growing up, North Minneapolis was a very important part of our lives. I personally saw the struggles of the people that lived there and how many of them worked to make it a better place to live, including my Father. So the fact that these two came in and took advantage of people that were struggling to make a community a decent place to live literaly makes my blood boil.
When I told my father about the comments on the other blog stating "what is the big deal, North Minneapolis has always been a mess. What difference is a few more crack houses". He became extremely upset. He said, don't they realize that just because people are barely above the poverty level, dosen't mean that they do not care about their homes and community.
I remember wanting "designer jeans" growing up and my father would tell me about his students that would only have two sets of clothes to wear to school. One day they would wear one set while the other was being washed. But they did not care, they just wanted to go to school no matter what they had to wear just so they could get an education to improve their lives and those of their families. I am glad that I learned these important lessons from my Father. I wonder what lessons Jon and Tom's children are learning?
So when these two devils came into North Minneapolis and took advantage of the low priced houses to make large personal gains, I just could not even fathom how someone could do this.
Just because they do not live in a big Log Home on many acres in Chisago Lakes, or a Big house in Rogers/Maple Grove, does not mean they do not care if the house next door is boarded up.
Just because their house might be worth 150K vs. 1.5 Million they still care about it's market value.
The fact that I ever socialized with them, and had them in my home....truly makes me physically ill.
This is why this is personal to me...We care about North Minneapolis.
Victim T
We were never involved in the North Minneapolis properties.
We grew up in the city of Minneapolis. My father taught at North High School for 30 years. Growing up, North Minneapolis was a very important part of our lives. I personally saw the struggles of the people that lived there and how many of them worked to make it a better place to live, including my Father. So the fact that these two came in and took advantage of people that were struggling to make a community a decent place to live literaly makes my blood boil.
When I told my father about the comments on the other blog stating "what is the big deal, North Minneapolis has always been a mess. What difference is a few more crack houses". He became extremely upset. He said, don't they realize that just because people are barely above the poverty level, dosen't mean that they do not care about their homes and community.
I remember wanting "designer jeans" growing up and my father would tell me about his students that would only have two sets of clothes to wear to school. One day they would wear one set while the other was being washed. But they did not care, they just wanted to go to school no matter what they had to wear just so they could get an education to improve their lives and those of their families. I am glad that I learned these important lessons from my Father. I wonder what lessons Jon and Tom's children are learning?
So when these two devils came into North Minneapolis and took advantage of the low priced houses to make large personal gains, I just could not even fathom how someone could do this.
Just because they do not live in a big Log Home on many acres in Chisago Lakes, or a Big house in Rogers/Maple Grove, does not mean they do not care if the house next door is boarded up.
Just because their house might be worth 150K vs. 1.5 Million they still care about it's market value.
The fact that I ever socialized with them, and had them in my home....truly makes me physically ill.
This is why this is personal to me...We care about North Minneapolis.
Victim T
Monday, January 28, 2008
Where do you draw the line on Loyalty
This question of loyalty keeps coming up. So I have to ask myself, being a self proclaimed loyalist when it comes to my friends and family, where do you draw the line?
Helgason was a long time "friend", but he certainly did not stand by us. He easily threw us away as soon as we called in our due notes and contracts. I guess if you want to stand by your friends Helgason and Balko that is fine, but just remember they will not return the favor.
Back to the question...where do you draw the line on friendship?
"Guilty or Innocent you stand by your friends, that is what you do".
O.K. so they only maliciously and with premeditation stole huge amounts of money from "friends" and ruined their credit ratings. Committed Bank and Mortgage Fraud. Stole money from children at a dance studio among many other crimes.
But where do you draw the line...?
Not that these crimes are not heinous enough, but what if they committed the following, would you still stand by them and protect them?
Pedophile charges, sexual assualt, murder?
Because you ALWAYS stand by friends Guilty or Innocent??
For me, I prefer to surround myself with people that have morals and ethics. Not people that would stand by me if I was a morally bankrupt criminal.
Just a thought for discussion.....
Victim T
P.S.
For all of those that want and post definitions.
Premeditation:The act of thinking about and planning a crime beforehand, rather than acting on impulse in a moment of passion or mindlessness.
Helgason was a long time "friend", but he certainly did not stand by us. He easily threw us away as soon as we called in our due notes and contracts. I guess if you want to stand by your friends Helgason and Balko that is fine, but just remember they will not return the favor.
Back to the question...where do you draw the line on friendship?
"Guilty or Innocent you stand by your friends, that is what you do".
O.K. so they only maliciously and with premeditation stole huge amounts of money from "friends" and ruined their credit ratings. Committed Bank and Mortgage Fraud. Stole money from children at a dance studio among many other crimes.
But where do you draw the line...?
Not that these crimes are not heinous enough, but what if they committed the following, would you still stand by them and protect them?
Pedophile charges, sexual assualt, murder?
Because you ALWAYS stand by friends Guilty or Innocent??
For me, I prefer to surround myself with people that have morals and ethics. Not people that would stand by me if I was a morally bankrupt criminal.
Just a thought for discussion.....
Victim T
P.S.
For all of those that want and post definitions.
Premeditation:The act of thinking about and planning a crime beforehand, rather than acting on impulse in a moment of passion or mindlessness.
Saturday, January 5, 2008
A Site for Victims....
I wanted to start a site where all victims and interested parties in the TJ Waconia scam could keep informed. I also think we can use this site to help all the victims by posting information on how to get assistance with foreclosures, etc. I have learned much about how these scams work and where to go to get help and will list links, etc.
But first, if you are a victim, please file a complaint with the MN Department of Commerce. Please indicate Jon Helgason and Thomas Balko names ( not just TJ Waconia). This is to ensure that the authorities are aware of all the victims.
Victim T
But first, if you are a victim, please file a complaint with the MN Department of Commerce. Please indicate Jon Helgason and Thomas Balko names ( not just TJ Waconia). This is to ensure that the authorities are aware of all the victims.
Victim T
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