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
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- We are victims of the Helgasons and Balkos. We are determined to legally fight both of them for as long as it takes.
121 comments:
Jon Helgason and Tom Balko are thieves of the worst kind. Not only did they prey unpon trusting friends and family but also the poor.
We are taking legal action against them for breach of contract and fraud. Our next court date is January 31st. They have filed for a protection order, so they do not have to be deposed in our case. If they are so innocent why would they not want to tell their side of story?
I will try to keep everyone posted as to the legal outcome, so maybe we can assist others.
Victim T
This is excellent. Thank you so much for setting this up.
I have posted this address every place I can think of.
Where can we read the affidavit that names Jon and Tom as being investigated by the FBI
I am trying to place the affidavit on this website, but cannot seem to do so...anyone have any suggestions??
Thanks!
Victim T
Victim t, Log in to the blog, Click on Add a New Post. Open the document that the afadafit is in. I assume you have Microsoft Word. Select all the text,and do a Copy. GO to the new post and Paste the text into the space.
If it is in a PDF, you can do a similar thing. Open the PDF, select ALL and the copy/paste it.
I'm not sure who accustomed you are to computers so that is why I added the more detailed steps.
The following is not the actual PDF file. But I copied it into a text format, so hopefully you can get the jest of it.
United States District Court
STATE AND DISTRICT OFh4l"ESOTA
Inthe Matter of the Searchof
OJnm, addrcss or brief descriptionofwon or property tobc scmchcd)
3101 Old Highway 8, Roseville, MN 55113, Suites 100, 104, APPLICATION AND AFFIDAVIT
105, and 203 FOR SEARCHWARRANT
Case Number:
Dmj4fI
I, JenniferL. Khan, being duly sworn depose and say;
I am a(n) Special Agent, Federal Bureau of Investigationand have reason to believe that onthe person of or
on the premises known as(name, description andkz location)
3101 OId Highway 8, Roseville,MN 55113, Suites 100, 104,105, and 203
inthe State rcL?dDistrict of Minnesota thereis now concealed a certain person or property,
namely(descrhe thc personorprupaty)
Please see Attached List of Items to be Seized.
propertythat constitutesevidenceof the commissionofache, contraband,fruitsof crirmnalaotivity,and/ormeans
of committing a crime
concerning a violation ofTitle 18,United States Code, Section(s)371 & 1341.
The facts to support a finding of Probable Cause are as follows:
See Affidavit attached hereto and incorporatedherein by reference.
Conrinued on the attached sheetand made a part hereof.
Sworn to before me, and subscribed in my presence
\-
TheHonorableSusan R.Nelson
ATTACHMENT A -ITEMS TOBE SEIZED
The following documents, records, and items constitute evidence of the commission of a
crime, contraband, bits of criminal activity, and or means of committing a crime related to the
violations set forth in the Affidavit of Jennifer L. Khan:
1. Records related to loans andox mortgages brokered by or fxilitated by TJ
Waconia (and related names), and Complete Mortgage, during the time period fiom January 1,
2004 through and including the date of thiswarrant including, without limitation, all loan files
and associated loan documents, purchase agreements, bank statements, title files and associated
home loan documents, rentalllease agreements, appraisal requests and appraisal reports, credit
reports, default notices and any otherrecords generated or received by TJ Waconia (and related
names), and Complete Mortgage inthe come of obtaining credit for its customers.
2. Records related to loans and/or mortgages brokered by or facilitated by TY
Waconia (and related names), and CompleteMortgage during the time period fiom January 1,
2004 through and including the date of thiswarrant including, without limitation, all loan files
and associated Ioan documents, purchase agreements, bank statements, title files and associated
home loan documents, rentavlease, agreements, appraisal requests and appraisal reports, credit
reports, defauIt notices and any other records generated or received by T3Waconia (and related
names), and Complete Mortgage, in the course of obtairling credit for its customers.
3. Any and all records, documents, tax and financial records, business records,
records and location of assets, during the time period from January 1,2004 throughand including
the date of this warrant that reflect the following entities andor names:
TJWaconia
TJ Land Trust, Inc,
TJ Land Trust IT, LLC
TJ Land Trust ID,LLC
TJ Land TrustIV,LIE
TJLand Trust V, LLC
TJ Land Trust VI, UX:
hvestors Warehouse
Absolute Appraisals
Complete Mortgage
Complete Real Estate
TotalTitle
TJ Xoldings
City Wide Management
Thomas Joseph Ballco
Jonathan Edward Helgason
GayleDeann Claw
Nathan Daniel Jesh
4. Any and a11records and documents during the time period from January 1,2004
through and includingthe date of thiswarrant that reflect two or more property purchases by a
singleborrower.
5. United Sates currency, monetary instruments, precious metals,and jewelry.
6. Safe deposit boxes and the keysand rental agreements, as well as records or other
items, including keys and combinations, relating to storage facilities.
7. Addresses or telephone books,photographs, and other documents tendingto show
the identities of associates or co-conspirators,or tending to identify the location of criminaIly
derived property.
STATEOFMINNESOTA )
1 SSAFFIDAVIT OFJENNIFER L KHAN
COW OFHEMPIN )
Introductron
1. I am a Special Agent of the FederalBureau of Investigation and have been so employed
for approximatelytwo years. My primary duties are to investigate white collar crime offenses
such as bank bud, mortgage fraud, wire fiaud, mail fraud, money laundcring, and public
corruption. In this capacity, I have become familiarwith and have investigated a group of
mortgage brokers and their conspirators in the Minneapolis / St. Paul metropolitan area who have
conspiredto defjraud, and who have in fact been dehuding mortgage lenders throughout the
United States for at least three years.
2. This fidavit is based upon my personal knowledge, education, and training, as well as
upon information that agents of the Federal Bureau of Investigation, and the United States Postal
InspectionService have obtained through conducting personal interviews of witnesses, reviewing
financial institu~onbank records, reviewing title/closhg files, reviewing home loan files,
and reviewing public record documents.
3. This affidavit is made insupport of an application for a search warrant to search for and
seize instrumentalities, fdts, and evidence of violations of Title 18, United States Code,
Sections 1341and 371 [Conspiracy]. Specifically,those its which are more hlly set forth in
Attachment A of this affidavit, at the businesses located at 3101 Old Highway 8, Roseville,
Minnesota 55113, Suites 100, 104, 105, and 203.
4. As is described more fully in this affidavit, based on my investigation so far, thereis
probable cause to believe that individuals operating a business at 3101 Old Highway 8,
Roseville, MN 551 13, Suites 100,104,105, and 203, and othershave committed
violations of Conspiracy and Mail Fraud. Furthermore, there is probable cause to believe that
evidence, fruits and instnunentalities of these offenses (asdescribed inAttachment A) will be
found at 3101 Old Highway 8, Roseville, Minnesota 55113, Suites 100, 104, 105, and 203.
Description of Place to Be Searched
5. 3101 Old Highway 8, Roseville, Minnesota 55113, Suites 100,104,105, and 203, is a
thee story, brown brick office building with windows, and isknown as the Primrose Building.
A sign in the entryway of the building lists YEH Holdingsand TJ Properties as occupying Suite
100, Citywide & TJ Companies occupying Suite 104, TJ Holdings & JEH Holdings as
occupying Suite 105, and Investors Warehouse as occupying Suite 203.
Details of the Mortqage Fraud Scheme
6. Based on idonnation leamed throughout the course of this investigation, it ismy belief
that the company called TJ Waconia, which is owned and operated by Jonathan Edward
Helgason and ThomasJosephBalko,is involved ina mortgage fkaud scheme to defraud real
estate investors and the financial institutionswhich hold the mortgages on the involved
properties. Momation I have learned throughout this investigation indicates that Helgason and
Balko mademisrvresantations to pmperty investors regarding the values ofthe properties in
which they were investing, the status of rentersthat would occupy the residences, cash kickbacks
2
ftr/ZE’d 60TT8P8TS9 331330 SXd313 1Wd IS LZST ~00z-tr0-33a
to investors, and "prepaid management fees" which were paid to Citywide Management with
monies at closing, and used the US.Mails in furtherance of the scheme to pay rent monies to
property owners/investors. Citywide Management is m by gelgason and Balko.
7. The primary location of TJ Waconia is 3101 Old Highway 8, Roswille, MN 55133,
Suite 105.A searchof the Minnesota Secretary of StafxBusinessrecords indicates that Helgason
is the registered agent of thiscompany. Addhionally, this investigationhas revded that Balko
and Helgason operate other businesses with namessimilar to TJ Waconia, i.e. JEH Holdinp &
TJProperties, TJ Holdings& JEH Holdings, and TJLand Trust. An internet search of TJ
Waconia, Helgason and Balko disclosed that they are also doing business as Investor's
Warehouse, which is located at the same hseville, MN address. Additionally, a telephone call
placed to the telephonenumber listed on Investor's Warehouse'swebsite was answered by a
receptionist as "Complete Mortgage."
8. On or about November 2,2007, your Affiant surveilled the office building located at
3101Old Highway 8, Roswille, MN. Upon entering the building, your affiant saw a building
directorywhich verified all of the above mentioned companies operate out of various suites
witbin the building, as listed above in Paragraph 3.
9. Onor about June 29,2007, an interview was conducted of a cooperating witness (CW#l)
regaxding the scheme. Accordingto the CW#l, Helgason and Balkointroduced the CW#l to an
investment prom that Helgason and Balkoreferred to as the Interim Buyer Program: An
investor "Lads"TYWaconia his or her credit, by purchasing an "investment property" fromTJ
Waconia. A Contract for Deed is simultaneously signedwith the "investor"as the seller and TJ
Waconiaas the "buyer"whereby TJ Waconia agrees to make payments to the "investor" that
3
match the mortgage payments owed by the "investor" on the mortgage securingthe "investor's"
purchase of the property. A prelirnirmy review of the documents suggests that TJ Waconia
purchased numerousproperties out of foreclosure and resold them to "investor'syy at significant
mark-ups. Although settlement statements provided to the lender indicate that the "investor" will
be bringing cash to the transaction,in fact, the "investof receive $2,500 at the bine of closing
with a promise of an ad&tional$5,000 at the "back end" when T3 Waconla buys the property
back.
10. According to the CW#l, his understanding of the Interim Buyer Program from Belgason
and Balkowas that he was lending his credit to TJ Waconia, thinking that TJ Waconia was the
actual propertybuyer and not him. The CW#i does not recall ever filling out a mortgage
applicationwhen he purchased his properties. Each mortgage was arrangedby Helgason and
Balko.
1I. The CW#1 Mer advised that whenit was time to close on his first property, Helgason
told him that CW#l needed to bring fundstoclosing. The CW#1 told Helgason he did not have
that much money. Helgasontold CW#1 Helgason would provide the money,but it needed to
appear to come fkom CW#l's account. Helgason wired funds to the CW#l, who thenwrote a
check at closing.
12. The CW#l and his wife purchased numerous properties during early 2005. TJ Waconia
committed to "renting out" the properties and cutting a check to the CW#ls every monthto cover
the mortgage payments. TJ Waconia madepayments to the CW#l at first, but the payments
stopped entirely in approximately March 2007.
4
13. The CW#l is aware that Helgason and Bdko, d/b/a a TJ entity, purchased scores of
properties in north Minneapolisusing this scheme.
14. According to the CW#1, TotalTitle closed numerous transaction, including all of thc
CW#1'S properties.
15. Your affiant has reviewed documents indicating that TotalTitle hars been the title closer
for numerous property purchases arranged by Helgason and Balko. Investigationhas disclosed
that Total Title is owned by HeXgason and Balk0 and two other parties. Total Title was located at
7714 Brooklyn Boulevard, Suite 105,Brooklyn Park, MN 55443.
16. In an interview of CW#I on October 30,2007, CW#1 stated that he had heard that Total
Title had closed it's doors and that all ofthe files had been removed by an employee of the
company.On October 31,2007, the affiant confirmedthis by drivingto the location of Total
Title and observing that the office space was vacant.
17. The CW#1 also advised that Balko owned a company called Absolute Appraisals and
Helgason owned a company called Complete Mortgage or Complete Real Estate, as well. as a
company called Citywide.
18. On or about July 26,2007, your affiant received information fiom Folwell Neighborhood
Association (FNA) members regarding TJ Waconiaproperties. FNA advised their neighborhood
consists of 66 blocks in North Minneapolis, zip code zones 55411,55412, and 55430. They
noticed homes in their neighborhood that sold, and then resoid a couple months later for $30,000
to $40,000 more than the original sale FNA has created and maintained a chart of foreclosed
properties in their area. Between the dates of February 1,2007 through July 30,20007, FNA
idmtified 688 properties in foreclosure, Of these 688 properties, approximately 150were
5
EP/SE'd 60TT8178TS9
purchased by TJ Waconia and resold to individual buyers. Further, TJ Waconia and Citywide,
the property management company owned by Helgason and Balko, have made minimal, if any
repairs and provide virtually no propertymanagement service. TJ Waconia has sold the
properties they purchased for moreeach time, and have hiled to file building permits with the
City of Minneapolis for property renovations they represent have been made.
19. On or about Au=pst 3,2007, your affiant received information froma second cooperating
witness (CW#2) regarding four properties he purchased throughand fromTJ Waconia in 2005.
CW#2 was not an Interim Buyer; he purchased theproperties outright. He advised that Balko
misled and misrepresented the properties CWiY2 purchased, explaining that he purchased a three-
bedroom home that is actually only a two-bedroom because the ceiling are not hgh enough.
20. After CW#2 purchased these properties, he attended real estate classes and obtained a real
estate license. It was at this time he noticed that some of the papexwork for his purchases
throughTJ Waconia was missing, such as having the "HCUD" in advance of closing and the
"Truth in Lending" fonn. He was told by Balk0 that TJ Waconia would set everythingup; i.e.
find renters, have the inspection done, Section VUI paperwork, etc. Additionally, he neversaw
the appraisals. BaIko and Helgason told him what the appraised value of the homes was. TJ
Waconia took care of all the mortgages. CW#2 does not recall filling out four separate mortgage
applications. CW#2 did not look at the propertics before he purchased thm. In fact, Helgason
and Ballco told him. not to drive by the properties. All four closings were done at Total Title.
21. Paymentshe was receiving from TJ Waconia in the fom of rent stopped in March 2007.
Because of this, CW#2 recently decided to sell two of his properties. He explained that he took
approximately a $25,000 loss on each of these two homes, for a total loss of approximately
6
EP/9E'd 60TT8P8TS9 331440 SAt1313 1Wd IS
$50,000. He also sold one property back to TJ Waconia on a Contract for Deed. Xowever, TJ
Waconia has defaulted on their payments, the house has $10,000 damage, an$800 unpaid water
bill, and the insurancewas cancelled.
22. On or about October 25,2007, your affiant conducted an interview of a third cooperating
witness (CW#3) regarding the scheme. CW#3 purchased four propexties through and fromTJ
Waconia. CW#3 was told about the "investor program"by Balko,Helgauon and employees of
Balko and Helgason, and that there was no risk. TJ Waconia needed more cash to purchase
houses, but they could not get any more credit on their own, therefore they needed to use people's
credit to purchase additional houses. CW#3 was told that he would be given $10,000per home,
per year.
23. CW#3was instructed to supply his personal financial infomation to an employee of TY
Waconia. CW#3 does not recall completing four separate loanapplicati0:ns for the properties
purchased. CW#3 recalls signing what CW#3 can only assume:to be mortgage documents on
two separate occasions. The fixst set was signed in a dark rest;rurant with only CW#3 and a
representativefiom Total Title present. CW#3 did not have an opportudy to review the
documents and was instructed where to sign by the placement of"sign here" stickers. The
second set of documents were signed the next day at Total Title. CW#3, the same representative
from Total Title, and Balkowere present for the:closing. The documents were not explained to
CW#3, and CW#3 felt a sense of urgency to sign the documents as quickly as possible. CW#3
recalls signing four checks over to TJ Waconia at closing, does not recall the exact amounts of
the checks, but remembers that the checks were in amounts greater than $10,000. CW#3 was
told that the checks were for the downpayments, which TJ Waconia covered.
7
33InlnlO SI8313 lfltfd IS
24. CW#3 was told by Balk0 that CW#3 does not own the properties and that CW#3 should
not visit them. BaUco told CW#3 that it did not matter where theproperties were located at that
they were picked out of a hat.
Computer-Electronic Data Lanpuage
25. Informationobtained by your affiant in this investigation indicates that the ofices at 3 101
Old Highway 8, Roseville, MN 55113, Suites 100,104,105, and 203, have used computersto
fabricate loan applications and other documents that were submitted to fixlaincial institutions and
others on behalf of clients who were obtaining mortgage loans. These documents have been seen
throughout the reviews of numerous title and lender files in this investigation. A visual
inspection of the offices located in Suites I00,104,105,and 203 has confirm& that computers
are used in its business. In addition, based on your affiant's trainingand experience, I know
that computer hardware, peripheral devices, software,electronic files, documentation, and
passwords are integral to the functioning of businesses like TJ Waconia, TJ Holdings, Citywide
Management, and Investor's Warehouse.
26. I know that computer hardware, sohare, documentation, passwords, and data security
devices maybe important to a criminal investigation in two distinct and important n?espects: (1)
the objects themselves may be instrumentalities, hits, or evidence of crime, and/or (2) the
objects may have been wed to collect and store information about crimes (in the form of
electronic data). Rule 41 of the Federal Rulesof Criminal Procedure permits the government to
8
search and seize computer hardware, sofbare, documentation, passwords, and data security
devices which are (1) instrumentalities, fruits, or evidence of che, or (2) storage devices for
information about crime.
27. Based on my knowledge, training, and experience in the execution of previous search
warrants, I know that searchingand seizing information from computers often quires agents to
seize most or all electronic storage devices (along with related peripherals) to be searched latex
by a qualified computer expert in a laboratory or other conmlled environment. This is true
because of the following:
a The volume of evidence. Computer storage devices (Le., hard disks,
diskettes, tapes, lasexdisks,Bernoulli drives) can store the equivalent of thousands of pages of
information. Additionally, a suspect may tryto conceal criminalevidence by storing it in random
order or with deceptive file names. Thismay require searching authorities to examine all the
stored data to determine which particular files are evidence or instnunentalities of crime. This
sortingprocess can take weeks or months,depending on the volume of data stored, and it would
be impractical to attempt this kind of data search on site.
b. Technical requirements. Searchingcomputer systems for criminal
evidence is a highly technical process requiring expert skill and a properly controlled
enviroment. The vast array ofcomputer hardware and software available requires even
computer experts to specialize insome systems and applications, so it is difficult to know before
a search which expert is qualified to analyze the system and its data. In ariy event, data search
protocols are exacting scientific procedures designed to protect the integrity of the evidence and
to recover even "hidden," erased, compressed, password-protected, or encrypted files.
9
fP/6E 'd 60~~8~8~9 331=1dO SXiJ313 lfltrd IS 6z:n ~00z-~0-33a
28. Based on my knowledge, training, and experience, and consultations withFBI Computer
Analysis Response Team (CART examiners, I know that searching computerized information
for evidence or instnunentalities of crhe commonly quires agents to seize most or all of a
computer system's inputloutput peripheral devices, related softwarc,documentation, and data
security devices (including passwords) so that a qualifiedcomputer expert can accurately retrieve
the system's data in a laboratory or other controlled environmmt. This is true because of the
following: The: peripheral devices which allow users to enter or retrieve data fromthe storage
devices vary widely in theircompatibility with other hardware and software. Many system
storage devices require particular inputloutput (VO)devices in order to read the data on the
system. It is important that the analyst be able to properly reconfigure the system as it now
operates in order to accurately retrieve the evidence listed below. In addition, the analyst needs
the relevant system software, (operating systems, interfaces, and hardware: drivers) and any
application's softwarewhich may have been used to create the data (whether stored on bard
drives or on external media), as well as all related instruction manuals ox other documentation
and data security devices.
29. Based on the foregoing, pursuant to this search warrant application and affidavit, I am
requestingauthority to seize for a later search any computers and peripheral devices within the
scope of therequested warrant. Further, the computers and peripheral devices are themselves
instnunentalities of ongoing fraud and are independently sekable onthat ground. If the analyst
determines that the VOdevices, software documentation, and data security devices are not
instnunentalitiesand no longer needed for evidentiary purposes, thenthe government will return
them within a reasonable time.
10
rP/0t7 'd 60TTEP8TS9 331330 SX8313 1nUd IS 0f:ET L00Z-P0-33CI
Condnsion
30. There is evidencethat a crime hasbeen committed. Based upon my experience and
training as a Special Agent, andbased on tlne above stated facts and interviews, ThomasBalko
and JonathanHelgason as principals of TJ Waconia (and variations of this name), Total Title,
Citywide Management, Investors Warehouse, and CompleteReal Estate submitted false and
fraudulent documents to banks and mortgage lending institutions for thier clients to obtain
mortgage loans, and utilized the U.S.Mails to makerent payments in furtheranceof the scheme,
There is probable cause to believe that such conduct included offensessuch asfalse statements
on loan and credit applications, mail fraud, bank fiaud, and wire fraud.
30. Affiant submits that probable cause exists to believe that evidence, :hitsandlor
instnunentalitiesof crime are present at 3101 Old Highway 8, Roseville, MN 55113,Suites 100,
104,105, and 203. Affiant therefore requests that a search and seizure wmt be issued,
authorizing me and other law enforcement officers to search the premises at 3101Old Highway
8, Roseville, MN 552 13, Suites 100, 104, 105, and 203.
Further your affiant say& not.
Special Agent
FederalBureau of Investigation
Subscribed and Sworn to Before Me
this1%Day of “U‘nhVc ,2007.
~
S6S-M R.NELSON
WED STATES MAGISTRATE JUDGE
11
ATTACHNENT A -ITEMS TO BE SEIZED
The following documents, records, and items constitute evidence of the commission of a
crime, contraband,fiuits of criminal activity, and OTmeansof committing a crime related to the
violdons set forth in the Affidavit of Jennifer L. Khan:
1. Recordsrelated to loansador mortgases brokered by or facilitated by TJ
Waconia (and related names), and Complete Mortgage, during the time period &om January 1,
2004 throughand including the date of this warrant including, without lionitation, all loan files
and associated loan documents, purchase agreements, bank statements, title files and associated
home loan documents, rentalllease agreements, appraisal requests and appraisal reports, credit
reports, defkult noticesand any otherrecords generated or received by TJ Waconia (and related
names), and Complete Modgage in the course of obtaining credit for its customers.
2. Records related to loans and/or mortgages brokered by or facilitated by TJ
Waconia (and related narnes), and Complete Mortgage during the time period fion January I.,
2004 through and including the date of this wmmt including, without limitation, all loan files
and associated loandocuments, purchase agreements, bank statements, title files and associated
home loan documents, rentavlease agreements, appraisal requests and appraisal reports, credit
reports,default notices and any other records generated or received by TJ Waconia (and related
names), and Complete Mortgage, inthe course of obtaining credit for its customers.
3. Any and all records, documents, tax and financial records, business records,
records and locationof assets, during the time period from January I, 2004 through and including
the date of this warrant that reflect the following entities and/or names:
TJ Waconia
TJ Land Trust, Inc,
TJ Land Trust 9,LLC
TJ Land TrustIII, LE
TJ Land Trust IV,WX:
TJ Land Trust V,UC
TJ Land Trust VI, LLC
Investors Warehouse
Absolute Appraisals
Complete Mortgage
Complete Real Estate
Total Title
TJ Holdings
City Wide Management
Thomas Joseph Balk0
Jonathan Edward Helgason
Gayle Deann Claus
Nathan Daniel Jesh
331340 SYt1313 1flUd 1s ~E:ET ~00~-~0-33a
4. Any and all records and documents during rhe time period fkom January I, 2004
throughand including the date ofthiswarrant that reflect two or more propm purchases by a
single borrower.
5. United States currency, monetary instruments, precious metals, andjewelry.
6. Safe deposit boxes and the keys and rental agreements, as well as records or other
items, includingkeysand combinations,relating to storage facilities.
7. Addresses or telephone books,photogaphs, and other documentstending to show
the identities of associatesor co-conspirators, or tending to identify the location of c%ally
derivdproperty.
Thank you for the post.
I have a couple opinions. I agree Tom and Jon are scum and should be sent away for a long time. On the other hand, based on the witnesses account of the events why do people think they can get something for nothing? Why on earth would anybody risk their credit on buying a house from somebody who says "don't go and drive by it". Are you a moron? Doesn't this raise any kind of red flag????
The other statements made by the witnesses almost made me fall of my chair laughing. Seriously, if this is how the transaction went you aren't very bright. If you can't remember how many mortages you signed, if you didn't get to see the house, if TJ Waconia put money in your account so you can pay for the house. C'mon, take some responsibility for your stupidity.
Hindsight is always 20/20 but this amazing that anyone with an ounce of common sense would sit down with Tom or Jon and listen to the crazy scheme and then look them in the eye and say "where do I sign up"
When will people wake up an realize that you have to work hard -- things in life are not free, if it sounds too good to be true, then it probably is.
Something inside of you had to be saying why would this company buy a house for me and then make the monthly payments for me. All I need to do is put my name on the credit documents.....c'mon this is nuts, use your head.
Back to Tom and Jon. I hope they are found guilty, what that did is terrible. I'm sure there is enough evidence to prove that wrongdoing was committed. If the FBI has their computers the can extract anything they want off a hard drive (even if Tom and Jon tried to delete stuff months before the raid)....gotta love technology, it can be your best friend or your worst nightmare.
Any news on Mr. Balko's other business ventures -- ie, the dance studio...those poor kids and parents all ripped off by this loser.
I know, I know. We were idiots. You don't think my wife and I sit down every day and go, "how dumb are we?" The only saving grace is we were not alone and they will pay for it. We need to hear those comments so that we and other people never make such a stupid mistake again.
They found people who fell in love with easy money. There are too many of us out there. It was a hard and expensive lesson, but a well learned one.
You are so correct, you must work for what you get. If it is too good to be true,,,,,,,,,,
I hope, like myself, this website and others, give victims a place to go and realize you are not alone, and you need to come forward, no matter how embarrassing it is to make sure these two go away for a long time, along with Jon's processor Gayle (no wonder she was paid so much) and people learn from this.
Victim T, I cannot thank you enough for coming forward.
One good thing is that you can admit you were dumb. It is SO hard for me to belive that anyone could be that ignorant.
Thank god someone finally pointed it out.
These victims were all in it for the money also.
GREED people, everyone trying to make a fast dollar.
If convicted of fraud, how long would they be expected to go to prison?
No one will ever know, how long they will go to prison for. They have to be charged an convicted first. I am sure we will all know soon enough.
I agree that greed played a part for most. But greed is in all of us if greed is wanting to make money.
I think ignorance played a much larger role. We were sold an idea, we didn't check it out, and Jon and Tom seemed like they knew what they were doing and could be trusted.
If you don't know real estate, or how it is bought and sold, and god forbid listen to Charleton Sheets and no money down, it would make sense.
I'll be every person these two used were good friends or first time investors. Just a hunch.
I know Gayle Claus was Jon's personal processor. What role, does anyone know, that this Nathan Jesh played?
I also didn't see Tom's personal address on the Affadavit for Absolute Appraisals. Did Tom move his business to Roseville? If not, I do hope the FBI is checking that out. (I know, they know how to do their job better than I do :-))
Another big player with these guys was Sam Ashkar. Does anyone on here know what happened to him? I was disappointed not to see his name on the affadavit.
when an investor subscribes to an investment of course he knows there is risk. the problem is that they used peoples identities(investors) in the commission of a crime, in fact many crimes. They called the investment "interim buyer" and there was some honest risks in the scheme explained. that risk lacked the illegal and fraudulant use of identity. none of this would you of known had you subscribed . i may be stupid but you are an idiot for you know not of what you speak . thanx
A couple of questions? is anonymous postings all the same person?...it seems like different people.
Dumbass, not sure who you are calling an idiot??
Thanks!
Victim T
all of these anonymous retards that want to comment on a situation that they have absolutely zero knowledge of. each individual investor was played in a calculated manner. customized to their situation. this scheme was advertised as a legit investment time and time again, in a much more professional manner than a sloppy fbi affidavit.
Victim T, they are different posts. Well, at least 2 for sure. lol. Can you or anyone explain exactly what the posting by "a dumb ass said" means? I thought I was the only one trying to figure that out.
Are you saying Jon and Tom were right? Are you one of them? Be more specific, it really isn't clear what you mean.
Dumbass --
Your name says it all.
Anyway, I can account for at least two posts as well.
Regarding your ignorant comment that none of us know what were talking about because we're not a victim.
Well.......let's see, I actually went to high school with the slime ball Balko, I know of several VERY close friends that he scammed and have lost a lot because of Tom's actions. Hmm, let me see, are you Jim Watkins trying to weasel some information so you can protect yourself and the questionable things you do???
I know people who walked away from Jon and Tom's interesting sales pitch saying "it doesn't make sense.."
Have a great day
I would have to agree. Dumbass, did you read the FBI affadavit? Exactly how is it sloppy? To any of us who were victims, it's dead on the mark. The only saving grace is Jon and Tom are basically lazy and not very bright and left a trail a mile long.
And am I reading that correctly, their presentation was legit? It was misleading to say the very least.
Thanks for clarifying the anonymous posts! Maybe people can assign themselves a nickname so we can differentiate who is making posts...you can still remain anonymus.
Not sure what Dumbass is getting at, but I do agree that Jon and Tom definitely "designed" a sales pitch tailored to each person/persons. I know for us we turned him down several times, but he kept coming back at us telling us there was absolutley no risk. He said and signed papers that he would by the property back on specific date ( thus the breach of contract lawsuit). He also used our friendship by telling us this would really help him out...he just needed our credit for a short while. What a scumbag!!! The funny thing is he never stopped bugging us to invest more and we said NO WAY. That is when we started to get suspicious of the situation. We asked him to give us back the money he borrowed (promisory note) and he kept putting us off. So even before the Star & Tribune article hit and we knew he was in trouble we hired a lawyer and served him. We heard through friends that he was not worried about lawsuits because he thought none of us could afford lawyers for the long haul...again what a scumbag!! And guess why none of his friends could afford lawyers??? He had swindled them out of all their money!!
Not us....we will FIGHT until the very end! We will make sure that even when Jon and Tom come out of prison that their future earnings are garnished and go directly to the victims!!
But what will be even better is once the forensic accountants figure out what they did with the money...they will have to pay us back. That includes any assests in Amy Helgason or Jill Balkos names. If they think they are not going to be held accountable...our lawyer says the wives have another thing coming!!
Thanks for letting me vent.
Victim T
Victim T, would your lawyer be interested in taking on another case? What you write is dead on. We could not sue, could not even fight. We had no money, our credit was ruined, we had little choice but to sign a settlement agreement not to ever sue them. (Jon brought a bogus lawsuit against us first, the old, he transfers money into our account for closing thing, and later claimed we were stealing it. This happend when our credit was not good anymore to buy additional propeties.)
You were brilliant to get that promissary note signed.
Seriously people, they have not changed in years.
This was 5 years ago they did this to us. I wonder if, with the current information (which I feel so vindicated, you cannot even imagine) allows me to sue them. I am back on my feet and have the money to do so.
I use to day dream that if I ever won the lottery, I would spend every sent going after them. They took advantage of not only my trust but my wifes trust in me. For this I can never forgive them, ever.
Victim T, I am serious, I will help in any way possible. If a lawsuit helps, I want to do it. If you need my testimony in any way, you have my email address. :-)
I have attached a user name for identification purposes. It's how I will go out making sure they go down.
Withbootson,
I am so sorry to hear about what Helgason did to you and your family. I will email you and we can talk about how we can work together to finally get them. The trick will be getting them before the FBI does.
I know people talk about how we were all idiots, etc. for getting into this, but we are not idiots, just trusting friends. We were personally not trying to get rich at all....just trying to help a so called friend.
Take care,
Victim T
my polnt was not that the victims are idiots. we victims did agree to some sort of custom tailored investment. what we did not know is that our identities(ie credit) was being used to commit fraud and various crimes there of. (hiding their own debt from lender)(equity stripping)
there are many people involved that will not come forward because they purchased individual properties from tj as well as got on board with interim buyer. although they are pissed about interim buyer going bad they fear loosing their supposed legit purchases by coming forward.
Dumbass,
Do you really think Jon and Tom sold any legitimate properties?? I would really be surprised if anyone can come forward and say that TJ ( whatever LLC they are using this week) actually had a legit real estate transaction. Jon even sold his mother properties she has to foreclose on.
Hopefully we will have more legal updates for you early this week.
Victim T
Check out the link Top Ten Villians. Tom and Jon so proudly made the Twin Cities Top Ten Villians list!
Well deserved!
Victim T
Victim T, any more word on any legal actions? I know the FBI will be slow, but how about your case? Is it still on for the end of the month? If so make sure you let us know. (keep us up to date) If the public is allowed to go, I want to be at every trial they are at.
Withbootson,
They will not be in court anytime soon. When we go before the judge with our motions, they do not have to be present. If our case is not stayed due to the criminal investigation I will let you know. If we are able to continue on the current court schedule, they will be in court by the end of March. If that happens, I will let all victims know!
Take care and thanks for all your support!
Victim T
I don't understand how people get away with this. I'm a victim so burned by this situation it amazes me how I get through it. Please keep all of informed of what is going on.
"I'm a victim so burned by this situation it amazes me how I get through it."
Sorry Cant Tell.....
Have you considered the following.....?
Stop being a dumbass victim who blames other people for the everyday mistakes that you have a knack for finding?
But look at it this way,
"If Ignorance was bliss...You would be in Heaven."
No one here is blaming other people for our mistakes...if you can call being scammed our own mistakes. We are just hoping to help others, create a place where people can come and find some support and peace.
As for you...you must be the last "believer" in Helgason. Maybe you are at his house ( that will be confiscated soon) drinking his kool aid.
Victim T
it amazes me how people lash out and have no idea what i'm going through. Did I say it was the mortgage fraud no I did not. Guilty? I never thought that I would see people actully get what they deserve. Thank you T
Victim T wrote:
"We are just hoping to help others, create a place where people can come and find some support and peace."
Oh please! You people support each other about as well as a broken jock-strap!
And "peace?" You guys should be up for an Oscar with all the DRAMA you are creating.
Anyway, don't let me stand in your way with your quest to be known as a victim.
And "Victim" is defined as:
"a person who is deceived or cheated, as by his or her own emotions or ignorance"
Keep going! Let the world know you are a victim. Do what you can to keep others from becoming ignorant as well.
Tom/Jon,
Do onto others as they do onto you...see you on the other side Brothers.
These people are not ignorant, they are just trusting souls.
The gospel will be spread......
The Preacher
Spread..... Along with your petty B.S.
This site is a great idea. I was very involved in the TJ Waconia discussion on Alex Stenback's blog, www.behindthemortgage.com and I'll be posting information as I dig it up on this blog, since the format is wide open. JOHN HOFF
THE FOLLOWING INFO POSTED WAY DOWN BELOW CAME TO MY EMAIL ACCOUNT some time after the "rolling firefight" discussion about TJ Waconia on the BTM blog.
I can't help but think that discussion on BTM may have helped inspire this blog to come into existence, so the "rolling firefight" will never be cut off and everything can come out for public examination.
But no criticism intended to BTM, which is more of a formal and classy blog.
I have not had much opportunity to look into the info in this email, below, due to being busy with school. I am just posting it as it came, verbatim, to my email acct from somebody who used the name "Don Corleone."
(THANKS DON, wherever you are)
Message from "Don Corleone" was as follows:
----------------------------------
Saw your postings on the BTM blog. Thought you might get a kick out this.
Message was sent to the StarTrib reporter who did the article on TJ in July. I have lots more info where this came from.
---------- Forwarded message ----------
From: Don Corleone
xxxxxx [email info redacted by Johnny Northside]
Date: Jul 23, 2007 7:20 AM
Subject: Mortgage Fraud
Article...You're just scratching the surface
To: xxxxxxxxx [name deleted by Johnny Northside]
I ran into Balko and Helgason while working with a "real estate investment group" TJ are pushing many many more properties than just the northside debacle.
When i saw what was going on and did some digging on my own, i started to see the magnitude of what these guys were doing. i cancelled my contract with the REI group an ran away as fast as i could. I also contacted the
local PD and FBI office to let them know what was cooking...mostly in
regards to the REI group, but also TJ and a few of the other outfits.
Locals couldnt do anything and Feds seemed preoccupied (presumably with the jill lehn case)
For more on TJ...Check all of their other LLCs...look into developments in Big Lake on Junegrass Drive and Trillium Lane...Restone Lane in
Hayward...14937 60th st Stillwater... Rock Brook Ln in Montrose... and condo conversion projects on Taylor Street in Shakopee and Industrial Ct in
Hudson.
See the bottom of this message for the text of what i reported to the Dept of Commerce this spring.
If i were you, i'd start looking at ads on minneapolis.craigslist.org under the real estate for sale heading. that's where most of these guys are finding "investors"
Also try www.goipdirect.com (same physical address as TJ's building in roseville), www.superiorig.com and www.dwinvestmentgroup.com
There's plenty more info where this came from.
DW Investment Group
Daniel Dawson...Not licensed
Stefan Wills...Licensed Through Resource One Realty 952-994-6922...office
8640 Eagle Creek Circle, Savage (inside the Auctus Real Estate Suite)
Pending cases with Shakopee PD...Detective Bridget Rettke
brettke@ci.shakopee.mn.us...952-233-3811
Savage PD Detective Al Bisek 952-886-2600
Victim...Nick Clarke
mobile...651-717-5863..
nicholas.m.clarke@usar.army.mil or badboygm@hotmail.com
Wills and company sold Clarke 5 2br/3ba townhomes on Ember Court In
Apple Valley DWIG pulled out real estate commission and "prepaid management" totalling appx 17% of the purchase price. Purchase price was appx 240k units are worth appx 200k. PPM was deposited in DW's operations account and never escrowed as promised..dw spent ppm funds on operations DWIG then bought the properties on a CFD and promised to make payments
directly to bank....dw was late on over 27k in payments in February
that Clarke paid DW then told clarke to take the properties back. and promised to pay him
back appx 20k.
As of march dw hadnt paid clark back a dime and due to late pmts clarke's credit score dropped from mid 700s to mid 400s and
he cant refinance. He owes 10k per month in mortgage pmts and rents
pull in 5k-6k per month.
-----------------------------
Johnny,
Does DW Investment Group have anything to do with Helgason/Balko? Or is this a different outfit.
Thanks!
Victim T
In regard to Nathan Jesh, named in the affidavit, a google search turns up only one Nathan Jesh in the world and here is his "my space" profile.
http://profile.myspace.com/index.cfm?fuseaction=user.viewprofile&friendid=34061703
If this doesn't work as a link, then just Google "Nathan Jesh" and you'll turn it right up. Not much useful info on there, though.
that's a great question victim t. I wonder if DW is the same outfit. Same MO. I do know a something similiar to that happened in HUGO representing TJ holdings was Sam Ashkar. I know John Hoff you had looked into that also.
It is the very tip of the iceberg.
I have no idea about how creditable the information is. It's literally an anonymous email. I figured if I threw the info out there, somebody who knew more might start spilling some beans, you know?
For what it's worth, I sent a message to the very anonymous "Don Corleone" to ask if he is saying "DW Investment Group" has ANYTHING to do with Helgason and Balko. I guess I will see if I get some kind of answer.
I went to the website for DW Investment group and it doesn't give away much of anything, and it's not what I would consider complete at this stage.
And I want to keep emphasizing that I do not know how creditable "Don Corleone's" information is. I prefer print journalism and the dubious immediacy of the internet gives me the willies.
But here's something I'd like to know and I am reliably informed I'm not the only one: is there a connection between Universal Mortgage (Donald Walthall's entity, under indictment) and TJ Waconia?
Of course, Donald Walthall was also involved in Superior Mortgage, a fact that just came to light with further indictment against Walthall.
Johnny,
Thanks for bringing on the information. That discussion is on Topix and I think most posters are going back and forth. Who do you think the TX poster is?
Thanks!
Victim T
Carrolton, Texas as well as nearby Plano, Texas are the stomping grounds of one Jim Watkins, self-described best buddy of Thomas Balko. (See the "high drama on the TJ Waconia thread" on Behind the Mortgage dot com)
Rather than having people go back and forth between the Minnesota Topixs blog and this one, it makes more sense for discussion to take place here since this blog is specifically created for this topic while Minnesota Topics is a big bloggy stew.
THE FOLLOWING WAS POSTED ON THE MINNESOTA TOPICS. I URGED THE POSTER TO COME OVER *HERE* TO READ MY ANSWER.
---------------------------------
Clarify
AOL
1 hr ago
After reading the affidavit on the other site, something doesn't make sense.
According to the person making the complaint, money for the down payment was given to them and they were given $2,500 at closing.
My question is, how exactly did they steal anyones life savings?
--------------------------------
MY ANSWER IN THIS HOT NEW BLOG SPOT WHICH IS SUPERIOR TO MINNESOTA TOPIX AS A SPACE TO DISCUSS THESE ISSUES:
I think it's very consistent with both reason and logic that one could be given a sum of money at a particular period of time and yet also, simultaneously, one's life savings could be stolen as a result of the overall transaction.
Saying one was given $2,500 at a particular point in time doesn't mean that's the ONLY thing which happened.
I hope that CLARIFIES. Of course, I would prefer to read an answer directly from somebody who was ripped off. I'm just kind of a digger of info who is also looking for a great deal on a house on the North Side. :)
Why don't you people give it a rest, and let the FBI do there job. It is amazing to me how many detectives we have out there. And no, this is not Jim, just another friend. Innocent until proven guilty, is what i always was taught.
Anonymous,
The reason that people are out looking for information or investigating is that some people have civil cases pending. Unfortunately we do not have the money or the resources that the FBI has access to.
It is important in these cases that you are able to show a pattern of fraud or illegal activity. Once this is shown, the defendants cannot claim it was just an honest mistake or a poor business decision. A pattern or history shows premeditation.
Thanks!
Victim T
"Innocent until proven guilty" is how it works in the court system. But it's a free country and one is free to conclude somebody is guilty and even argue that they appear guilty, mustering facts in support of one's rhetorical position.
It's very valuable for the victims to have a place like this blog where views and information can be exchanged, especially when it comes to organizing more civil suits.
Clearly, if one is sitting on something that might be evidence it would be best to at least see if the FBI is interested in the possible evidence, rather than remaining silent.
Anybody who comes here and more or less tells the victims "you brought it on yourself, dummy" or "shut up and don't involve yourself with investigative matters above your head" clearly has some kind of pro-Balko and Helgason agenda.
How *is* the whether in Texas, anyway?
as with life comes death
Johnny,
Do you know how to find out who owns a home that is being foreclosed on? There is an article in the Star & Trib today about a neighborhood in North Minneapolis that is suing the mortgage company. The address on the house is 415 31st Avenue North. I know you have found information in the past.
Thanks!
Johnny,
I found the owner. But will not publish the name in the event he is also a victim.
Victim T
DW Investment Group is not apart of TJ Waconia in any way or form. In fact DW Investment Group is about to file a compliant on TJ Waconia for mortgage fraud, false values on appraisals as well as stealing over $6,500. DW purchase along with its partners several homes which are now way over valued.
Don Corleone is mistaken, the open investigation in Savage is not against us but us against a former employee who stole all our operating expense last winter 2006-2007 which cause Nick Clarke’s payments to be late. We are actively working with Nick Clarke to repay any damages as well as helping him sell the homes. We are in good working relation with Mr. Clarke
DW Investment Group’s “MO” is not even in relation to the hell TJ Waconia caused, mortgage fraud, appraisal fraud. DW does not dictate value or does it dictate mortgage files, DW is an investment group which partners with investors to purchase properties, all contracts are written up by a MN RESPA attorney. We have not engaged in any fraud and obviously “Don” has a bone to pick with us and may have been a former employee that was let go because of the situation caused by the theft of the operating account.
dwinvestmentgroup,
Thank you for your clarification. I guess this just goes to show everyone that even when a legitimate business accidentally touchs TJ Waconia they get burned as well.
Where are you filing your complaint? With the MN Department of Commerce or with the courts. I hope you are filing a complaint with the court system, because the more victims they are aware of the better. Also please let the FBI and MN Attorney General aware of your complaint. Please let us know if we can provide you with any assistance.
I wish you well and apologize if anything posted here was incorrect.
Kind Regards,
Victim T
svfsspsI have a question regarding the wives of Tom and Jon. Are they in as much trouble as thier husbands?
DW is not that great or "clean"
NAte was the title closer
At one point Jon and Tom said they had commercial real estate properties, do you know if the FBI locked up those assets or forced to sell? I would think they would since that help repay any damage's. Just a thought.
Not sure about what will happen with Amy and Jill. I guess it all depends if they profited from the money, etc. Also if they find their names on any documents that were confiscated by the FBI.
As for the commercial property, I am pretty sure the FBI is aware of all their assets afer the raid. Nothing can be "locked up" or sold until they are indicted for theft by swindle, mail fraud and bank fraud. I assume when this happens, they will freeze all their assets including property and bank accounts.
I'm really glad for such a substantive discussion of DW and hope for more. "Don Corleone" is free to send me info at any time and I'll post it, but with such an open and freewheeling blog as this, Don probably doesn't need me.
But if I get leads on info, history shows I'll dig into it.
In regard to how to research ownership of a property...this is pretty basic info but it's good to have the discussion.
In Minneapolis, both the city and the county have excellent websites that list all the properties and the taxes on those properties, their value, owners, sales history, inspection reports...just a lot of great stuff.
There is quite a bit of overlap between the city and county sites, but always best to check both.
Every county in Minnesota does things a bit different but most of the developed counties have websites where you can punch in an address and get property info.
These websites are a lot of fun even if you're not digging for evidence of mortgage fraud. Neighbors who seem to have a lot of money may be in hock to a mortgage up to their ears, and folks who don't seem to have a lot are sitting on valuable properties.
Fun, fun, fun! Give it a spin!
MAGIC EIGHT BALL SAYS:
Before the middle of February, another major story about Universal and Superior mortgage will break. It will not be a Minnesota media entity that does the story, however.
MAGIC EIGHT BALL has spoken. :)
At one point I met a Bob Rick that was partners with TJ, but I have not heard him mentioned. I do not want to slander anyone but curious on how he fit in.
Thanks for starting this blog, it has given us victims that have been bent over by TJ Waconia a place to vent and get feelings and frustations off our chest.
Victim J
Anonymous,
Not sure who Bob Rick is, but if you can provide more information, i.e. what was his role with TJ Waconia, TJ Land Trust or whatever LLC he was involved with, we might be able to get you some information.
Victim J,
Glad you were able to find a place to vent your frustrations! I know for us it has been helpful to find we are not alone.
We go to court at the end of the month and will update everyone. The judge might not make a decision for a month or so once she hears our arguments, but I will let you know how the day goes.
P.S. There was a post on the Topix site from a guy named the Preacher you might appreciate. And even if you feel like TJ Waconia has bent you over...in the end, they will be the ones bent over :)
The people from that other forum need to come here, since this forum is more specific and has more long term potential.
Somebody at that other forum said Balko and Helgason weren't responsible for ALL the problems on the North Side like boarded up houses, etc. Well, it would be good to know WHAT PERCENTAGE of foreclosures on the North Side involved TJ Waconia, versus Universal Mortgage and Superior Mortage. (Both controlled by Donald Walthall)
TJ Waconia should get no more but certainly no less of a share of the credit for North Side problems that TJ Wack so richly deserves.
But I'll also say this: ONE vacant, neglected house is a big deal. It's a big deal to the block where people live and have to deal with all the associated problems.
ONE house involved in mortgage fraud is a big deal. For a single instance of mortgage fraud involving one house, multiple individuals can find themselves doing prison. (Though probably in some soft white collar crime facility)
So when TJ Wack is involved in numerous, multiple instances of alleged mortgage fraud, that is a very big deal...even if they didn't cause the North Side's problems all by themselves.
By the way, did anybody read Katherine Kersten's recent piece about the North Side in the Star Tribune? (Owned by Avista Capital Partners, a wholly-owned subsidiary of The Devil)
When I read Kersten's praise of efforts to fix up the North Side, phrased in her own oh-so-special way, I could feel another shock to prices on the North Side go right through the soles of my feet.
Not that I'm complaining!
Last I heard, John and Tom are broke, broke, broke. So how is anyone going to get anything from them? They don't own a thing, everything is mortgaged to the hilt.
t + j ' s money is most certainly not gone . just diversified like any normal crook. it costs a mere 2500 for a pi that specializes in ass wipes to find 12 pages of equities totaling multiple millions in assets.
I have been in the mortgage industry for over 3 years and I am ashamed of all the loan officers out there that are conducting mortgage fraud, it is blatantly illegal. Over the last few years this type of deal has become the norm and has a lot of hair to it.
Throughout the last few years I have heard plenty of stories about Tom and Jon which had around 100-200, the new market builder that had more then 100-200 homes but I have yet to hear about Michael Prieskorn with blackstone, that had 100-200 homes but I have heard from some of his investors who said he only made 1-2 mortgage payments on their behalf and then fled out of town with millions leaving them with the mess. I am surprised that has not made news yet. Between the 3 groups they have well over 500 properties in foreclosure, that is a huge hit to the market. And that is something that may be a bigger victim then the people, when these properties go into foreclosure and are repurchased from he bank it is usually even below the real value which brings down everyone home value. So I think it is almost everyone that owns a home in these areas is a victim.
I am afraid to say that I have heard rumors and have talked with a lot of people in this industry that say there are even bigger fish out there then them, and it is a large part of a certain community, that is the Hmong community which could put Tom and Jon to shame with mortgage fraud and then changing of names and doing it again and again and then disappearing.
Just a thought from a mortgage professional ashamed of his industry.
I had a long, informative conversation with somebody from the North Side neighborhood association a while back, right when the Universal Mortgage indictment came down.
And the word was there are indeed many fish to fry, some really big fish out there. So it may be a matter of fraudsters that are easy to find, or a particularly good set of facts or evidence.
I'm wondering what the feeling is of the moderator...should this blog stay very focused on TJ Waconia or is any Twin Cities mortgage fraud fair game?
(MAGIC EIGHT BALL is on pins and needles, anticipating a breaking story on Universal/Superior mortgage, maybe this coming week)
In other news...I'm really excited about the prospects for a home on the North Side, even with my modest financial grubstake. I had a pretty serious nibble this weekend from a seller.
We'll see where that goes!
Johnny Northside???
People & Victims alike, Johnny Northside is better known in the small-time media as, John Hoff.
Information about him was posted on the "Behind the Mortgage" blog.
He is a published author of a book about the "Art of Dumpster Diving." He used the name John Hoffman for the book.
I near crapped my pants laughing when I read about him on the link that was left there.
I read some of the other titles that his publisher publishes as well. Oh my! Here's a few:
Combat Shooting
Elite Units
Espionage & Investigation
Exotic Weapons
Financial Freedom
Firearms
Historical Arms & Combat
Knives & Knife Fighting
Locksmithing
Martial Arts
Military Science
New ID & Personal Freedom
Police Science
Revenge & Humor
Self-Defense
Silencers
Sniping
Survival & Self-Reliance
Terrorism
Wow! Those are just normal, fun for the whole family, day to day book titles.
So before anyone here starts to believe what this "former elected official that was removed after a recall" thinks.... He is only interested in this because he wants to buy a house in North Minneapolis at a big discount. In other terms, he wants to benefit from someone who got screwed there.
That sounds like dumpster diving for garbage houses.
Damn... The information that is out there on this "quack" is pretty entertaining. The real fun part is, HE gave me the clues on how to look things up on that blog!
Hey Johnny.... Isn't there some breaking news at the UofM that you need to cover? Oh... I guess the MN Daily would use their "Top" reporter for that!
I was wondering also if Johnny northside, Was John Hoff. If anybody out there knows John Hoff, then you know he is a fricken WEIRDO! John has it hard for John and Tom, no wonder why he is diverting everyone from Topix, over to here. Johnny, you truely need to get a life!
I would like for this site to be specific to Helgason/Balko and their companies including the dance studio.
If you have information from other cases/mortgage schemes that might help people, please post the information.
For example the ariticle on January 23rd in the Star & Trib about the case where the Hawthorne community is suing the mortgage companies. There is helpful information in the article about an organization that can help you called The Forclosure Law Relief Project, a non profit set up to help victims.
Victim T
Jim Watkins of Texas has it hard for John Hoff. He is the self-described buddy and pal of Balko and clearly wants me to stop digging into these issues with my rather colorful and notorious digging skills.
People can indeed go to the "Behind the Mortgage" blog and read the TJ Waconia thread, and see what was dug up there about Jim Watkins of Texas, not just by me but others who know him and his old association with TJ Waconia players like Balko.
I've never made much attempt to hide my identity. I just like cool self-made monikers like "Johnny North Side." I am indeed looking for a super cheap house on the North Side and that's what got me interested in the issue of mortgage fraud, because it has caused the prices to drop.
But buying a house that was owned and used by fraudsters is hardly taking advantage of the misfortune of others, except the bank left holding the bag, and banks are...well, they are banks. If they're selling low, I'm buying low.
In that way, me and Watkins have much in common when it comes to looking for bargains. See what Watkins wrote on the internet about the first house he flipped, which he dubbed "the rat house."
The big difference between me and Watkins is that I don't associate myself with somebody like Balko. Yeah, my publisher puts out some hard-edged titles. They also publish stuff about, for example, how to survive if your aircraft crashes in the wilderness or how to save money by growing a really fabulous garden.
I'm not responsible for all the books in their catalog, Jim. The only thing relevant about what Jim says is that I am, indeed, quite renowned as a digger of info.
And Jim Watkins is always trying to turn the discussion in some other direction, away from Balko and Helgason.
Back and Behind the Mortgage, folks had info about Jim Watkins, personal experience stuff and not just things dug up from the internet, like the stuff I posted.
Gee, I'd sure love to hear all about Jim Watkins--known as the "DFW Mentor" on his blog about teaching people to buy real estate, especially around Dallas/Fort Worth--and his early association with Balko and Helgason from those who have the facts.
Here is the website of Jim Watkins, whose association with Balko is a matter of public record.
http://www.dfwmentor.com/
A public record created by Jim, actually, and posted in internet discussion before all these allegations came out about TJ Waconia, Balko, Helgason, etc.
You can read about it AT Behind the Mortgage. That's what I meant to post above, sorry for the typo. Read about Jim Watkins in the discussion thread about TJ Waconia AT Behind the Mortgage.
I'm not really all that relevant... just a colorful character whose grubby digging skills are the stuff of legend, whether it's information or perfectly useful salvaged furniture from curbside. I live frugally. I don't defraud people to fund a high-flying champagne and caviar lifestyle, always needing more ill-gotten gain to fill the black void in a stunted soul.
Jim has "running at the mouth" disease. He always thinks by putting out some of his precious words he can influence everything, turn the discussion in another direction, whether that would be turning his focus to a colorful character like me or trying to make the victims feel stupid or not really victims by dropping a few choice words here and there, mostly anonymously.
I think it was P.T. Barnum who put forth a formula about which people you can fool, and how often, but the gist of it is no matter how good you are at fooling people YOU CAN'T FOOL ALL OF THE PEOPLE ALL OF THE TIME.
Careful John, they may just shut this site down too, just like the behind the mortgage blog, when you started in on your nonsense bull. Oh by the way, this is not Jim W. Wake up HOFF, there are other people in this world that think you are a complete idiot.
Good for you Jim, your web site is very impressive. Don't worry about Hoff, he just is a lonely man, that has nothing better to do, but rip on others. He really needs something more to do with his time. I know HOFF, how about getting a life?
Funny you should say that. It was a "two to tango" situation over there at BTM, and Jim Watkins was part of the flaming pissing match. In fact, that thread lit up due to Jim Watkins lying about who he was and getting called out on it by somebody else.
I was actually way late in the game. I found some stuff on the internet that showed associations between Jim Watkins and Balko. In one posting, Jim was pretty much waiving people toward Balko and saying, in effect, "Do business with this guy."
My postings were a truthful sharing of info, everything I dug up, including my uncertainty about how some of it might connect to TJ Waconia. I'm still not certain if an entity called "TJ2" (which owns an aircraft) is connected to TJ Waconia, and I've said so.
I don't know. I throw the info out there, hoping others who have pieces of info will jump in to the discussion, and we'll all put the puzzle together. I'm truthful. Including being truthful about the fact I'm quite uncertain how to untangle this big pile of fraudulent noodles.
Jim Watkins, in contrast, tried to play at BTM like he was just an OUTSIDER and didn't KNOW Balko and Helgason but wanted to make sure they were treated FAIRLY, oh-my-oh-my.
The thread went bananas when somebody came on there and called out Jim Watkins on his true and well-documented association with the (alleged) TJ Waconia fraudsters and the big fat fib Jim Watkins was telling (in writing, it's all still right there) pretending to be an objective outsider.
The question I pose is still out there. Who has more info on Jim Watkins?
And let's be fair: is Jim a straight shooter who simply had an early and unfortunate association with Balko?
But, gee, Jim Watkins sure does go out of his way to stick up for Balko, it appears.
I hear an echo. It's the echo of Jim Watkins' voice complimenting himself on an impressive website.
Sorry HOFF, this is not Watkins. Just someone that see's you for what you really are. What are you jeolous that someone paid Watkins a compliment?
that's how you know it's watkins mr. hoff. no one else would compliment him. seriously, ignore him, he is the biggest nothing you will ever meet.
I'm actually willing to believe you're not Jim Watkins. There is hard evidence Watkins can spell words like "jealous" and knows better than to put an apostrophe on a word like "sees."
Watkins may have many faults but he's a fairly decent writer. Oh, and the man loves dogs. Anybody who loves dogs can't be all bad.
If you know more about Jim Watkins and his early association with Balko, please spill. Give us colorful anecdotes, details.
What do you mean "the biggest nothing?" Somebody back at Behind the Mortgage said "he fakes it until he makes it." Don't leave us hanging, here. Do tell. Gossip. Dish, even!
For one thing, people will think YOU are ME talking to myself, but between the two of us WE know YOU are not.
Again, this is not Watkins, excuse the fact that i had a typo. Don't let these nothings on here get you down Jim. See I am working out of town, sitting here in my hotel room with nothing better to do on a Sunday, so I figured I would see what Hoff is spewing now. Now I realize after being on here, that he truely does not have a life. I feel for ya Johnny, cause if you are half as bored as I am today, which you apparently are, your life must really suck!
wAdKiNs Do YoU StIlL hAvE a GiAnT bIg BiRd On YoUr GaRaGe DoOr?????
I believe his name is spelled WATKINS, hurry Johnny criticize them for spelling incorrectly.
aNsWeReD wRoNg QuEsTiOn WaDkInS
No offense guys but this is a site for the victims and interested parties to come and discuss the current situation or find valuable information. I did not set this up so you could argue about Mr. Watkins or Mr. Hoff.
Thanks,
Victim T
Jim are you still pedaling that pathetic movie "Jim's Big Day"?
Victim T, or Teress or whatever your name is, people can write whatever they want on here. If they want to argue about Watkins or Hoff, let them. What is it with you? People cant have a little fun? You really need to seek out proffesional help with your obsession on Helgeson and Balko
Obsessed...No.
Focused...Yes :)
Victim T
I don't care about Watkins or Hoff, this is a TJ Waconia blog, you want to talk about them start a blog on that - dumbass
Read that HOFF, they are calling you a dumbass.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Victim T,
I'm not sure how familiar you are with blogspot but I believe you can delete any of the postings by these people who are being going off-topic. It might be a good way to clean it up.
JIM WATKINS SENT ME THIS EMAIL. IN IT, HE DISCUSSES HIS ASSOCIATION WITH BALKO AND HELGASON AND MAKES ATTACKS ON THE PERSONS WHO DESCRIBE THEMSELVES AS VICTIMS OF TJ WACONIA.
-------------------------------
John...
What is your malfunction??? I have never encountered anyone who wastes more time trying to get under people's skin, than you.
As you know, I am not the only person in the world who holds you in very low regard. I mention this because I stopped paying attention to the TJ Waconia
blogs about 2 weeks ago and today I see your comment that was posted on my article. That led me to go and look to see what you were all wound up about.
Sorry John.... You have pissed off more than one person it seems and THEY (whoever the hell it may be) made the comments about you.
You can search and dig for info about me all you like. The most you will find is that I, AM a friend of Toms and I stand by my friends when they need one.
So if you care to continue the offensive strike against me in hopes of ruining my reputation by linking me to Tom or discovering some little-known
fact that will damn me if anyone found out... Well, I guess there isn't much I can do about it.
Fortunately for me, its not illegal to be friends with someone who is being ripped by nearly everyone and yet has not even been arrested. You should be so lucky to have a friend that would stand by your side when no one else would... Guilty or not. Even IF the worst comes of this mess for Tom, guess
what?
I will STILL be his friend. There are not enough "John Hoff's" in the world to change that.
Anyway, did you notice what I have on both of my sites as site sidebars? Its contact info to the FBI to help prevent real estate fraud! Covering up something I don't want others to find???
Please!
Think about it.... For someone to continue to have FBI info on their sites, while one of their friends is being investigated by the FBI... AND it is a fact that I worked for them in 2003 (although nowhere near anything to do with the current investigation).... I would either have to have balls of steel
(not to mention an ungodly ego) to thumb my nose at the FBI OR I just happen to be friends with someone who is in a spot I would not wish on anyone, and have
stood up for.
I for one am SICK of all the scammers and people who do their business in a fraudulent way. In Toms case, he has never given me any reason to think he has done what he is accused of. Because of that fact, I continue to support him while the authorities continue to do their work.
If in the end, he is actually found to be guilty of anything, then I will stand corrected with
several of the defending statements I have made BUT..... I WILL NOT discontinue my friendship with him if that were to happen. I would be disappointed and probably
upset but a friend is a friend.
As I was saying about fraud and all the scammers...
Fraud in Texas is rampant and the ones who continue to do it make it harder for the ones who go out of their way to set a good example.
Maybe that is the reason I got upset with you in December.
[WATKINS APPEARS TO BE ALLUDING TO THE BEHIND THE MORTGAGE DISCUSSION ON THE TJ WACONIA THREAD--Johnny North Side]
Here I am, doing the best I can to conduct my business in an honest and ethical manner and encourage the students I teach to do the same... Only to have some
ill-informed, trash talking, Geraldo wannabe, go out of his way to discredit me and make
it appear that I am a criminal as well.
Guess what John? If you honestly want to go out and expose some real estate criminals... I wish you all the luck there is to offer (in fact, I assisted an investigative reporter expose a slimy trustee).
What I find ironic with all of this is the fact that as far as I can tell, you pretty much were out looking to find a good deal for yourself. If you hadn't attacked my character and integrity as you have.... I would have likely
helped you find a good deal.
Afterall, that IS what I do... Help people.
Oh and PS...
I know who many of the people are that are the so-called "victims" on those blogs. In fact, I went to school with a few of them and know plenty about things that they have done that they likely hope no one would find out about.
BUT... I won't give anyone details about any of it. Why? Its all below the belt, trash talk. If they want to go and post on every blog that they are some poor victim that has never done anything wrong in their life.... Let them. I
am not the one who they will have to face when they die.
In the meantime, let them rant and if you feel the need to continue to attack me ... then you can continue but, I won't see it as I have voiced my opinions enough. I am done jousting with you in public.
It makes me wonder though..... With someone who obviously has talent with investigative reporting and a grasp of the psychology involved with it to suck people in.... I wonder how much farther you and your career would (or could)
have gone had you bagged your "asshole in your face" approach in exchange for a more subtle, respectful approach?
Oh.... And leave my dogs out of it. I am CERTAIN that they are 100%
innocent, loyal and they don't deserve to be included in your garbage.
Jim Watkins
HERE IS MY EMAIL RESPONSE BACK TO JIM WATKINS.
------------------------------
Dear Jim Watkins,
Tom and Jon have hurt people. They are now in the middle of a
messy, ugly public controversy where victims and law enforcement
have staked out a position that Tom and Jon are crooks.
You got on the Behind the Mortgage Blog saying stuff about the situation, clearly probing for info, pretending like you didn't even *know* who Tom and Jon were
until somebody in the know called you out on it, right there
on that discussion thread, and pointed out your strong
past associations with them.
You continue, even in this latest missive, to take their side and to say your friendship won't end even if they are CONVICTED. You really can't take a position like that
in such a high-profile public controversy and not expect to get
roundly criticized, and not just by me. (A colorful character attracted to controversy, as we have
established)
Thank you for some of the nice things you said, like saying I have some talent...right after comparing me to Geraldo, the journalistic anti-Christ. Your writing
is also clear and expressive, as I've said before.
As for your dogs, you know them better than me. If you say they're not innocent, I'll take
your word on it. It's kind of funny how you'll say Tom and Jon are innocent but you won't give the same benefit of the doubt to your golden retrievers.
I will let others make their points on some of the other stuff you said, except to say this: I'm not impressed by the way you post FBI contact info on your website.
The fact you make such efforts to point that out speaks more loudly than the original posting.
I know plenty of people who display pro-police statements on bumper stickers. It doesn't make them better drivers.
John Hoff
HOFF - You only wish you could have 1 loyal friend in this world. Good for Watkins for standing behind a friend. Innocent or guilty, that is what friends do. This is why you resort to blogging, it gives you someone to talk to, because no one else can stand listening to you.
Can we please keep this post specific to TJ Waconia? Please take any personal bashing off line. I want to hear about the victims and their stories, and any info they might have. Thanks.
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?? 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.
But see, Jim Watkins was apparently never victimized by Balko and Helgason.
On the contrary, there was a period of time Jim was working for them and, one would assume, profiting by his efforts. Give this much to Jim: his expressive, even insightful writings strongly promote working your butt off. So one can assume if Jim Watkins worked for Balko and Helgason, he worked his butt off.
And Jim wasn't just a lackey or a low-skill worker. Everything one finds out about Jim shows the man bubbles over with ideas and energy. If he worked for Balko and Helgason, Jim Watkins probably had influence in some decisions, even if he wasn't directly in charge.
I mean, just based on what can be gathered from his writings. No working drudge is he, but a mover and a shaker.
Because Jim was not a victim, Jim can have the luxury of appearing loyal and highlighting that quality of loyalty as though it were more of a virtue than, for example, the objective ability to distinguish personal feelings of friendship from moral behavior.
Besides, if Jim puts out the word in public he won't squawk on Balko and Helgason, then perhaps Jim can hope for the same from his friends, Balko and Helgason.
But can he? Hmmmmmm.
Time will tell.
Also, I don't see this blog as just a place for "victims to tell their stories." That's yet another anonymous post trying to shut down and influence the flow of information AWAY from the PLAYERS and, furthermore, to solicit information that might be useful to TJ Waconia!
In other words: don't investigate. Don't dig. But, sure, ya'll can talk about your precious sad feelings and, also, discuss in detail which victims are pushing the most strongly to see Balko and Helgason in jail.
But clearly, anybody who can put forward useful information about the TJ Waconia situation has something to add to this blog, victim or not. It's about HELPING the victims, not just giving victims a place to vent their precious feelings.
Even Jim Watkins, while proclaiming his loyalty to Balko and Helgason and bashing the victims, is adding a useful piece of information to the puzzle. We know Watkins worked for them and we know in quite some detail where Watkins stands. He stands with Balko and Helgason.
And that is why the moderator, when given an opportunity, DOESN'T remove those posts though great job Victim T, in getting rid of the posting that was just miles of alphabetical gibberish meant to "clog the blog." Somebody out there wants this thing shut down.
But to summarize....
Given every opportunity to distance himself from Balko and Helgason, Jim Watkins (the "DFW Mentor") embraces Balko and Helgason of TJ Waconia and literally proclaims them to be MORE INNOCENT than two big, bumbling golden retrievers.
Or he doesn't. The final part of my statement was based on a misread of Jim's email. I thought he said his dogs AREN'T innocent but he said they ARE.
Well, dogs and babies are intrinsically innocent. Better to leave them out of it altogether. I won't bring up the dogs again.
I would like to point out that email came to me unsolicited. Maybe it would have been better to open up a "back channel" of communication.
The January 31st court date mentioned at the beginning of this blog is looming. I'm very interested to hear how that goes.
This site is the most pathetic site ever. What Teress and Hoff, you just remove stuff that does not apply to what you want to discuss. I personally wrote a few things, of importance, and you just take them off, because I was not victimized. You two need help. NOW
It's Victim T's blog, and she can do what she freaking wants to with it. If Balko, Helgason and/or their supporters want to start a blog called "TJ Waconia Victims--NOT" then it's a free country.
Outside of prison, I mean, it's a free country. Once in prison, well, blogging becomes quite difficult. Blog today, I say, tomorrow is uncertain!
Awhile back Victim T asked everyone to put names in, as everyone is blogging under the name, anonymous, is there anyway people could start doing that? It would be helpful.
Agreed, it would be helpful. People should at least pick a nickname and stick with it. It would be best to use one nickname and not try to create the illusion of multiple posters who all feel the same way by posting over and over as "anonymous."
When the posts are within a few minutes of each other, that's just obvious and pathetic.
DON CORLEONE SPEAKS:
The person who emails me using the name "Don Corleone" has broken his/her silence and provided me more info.
Here's what I have to share TODAY, from the keyboard of Don Corleone and I am not able to verify whether or not it is true. Indeed, I am not able to figure out the context or put this into the pieces of the puzzle, so I certainly do not make any statement as to the truthfulness of these words:
----------------------------
DW were conduits for selling the cash back properties. The Apple Valley properties were sold to the investors with DW acting as buyers agent.
Ironic part is that DW sold a bunch of properties to Wills' family... his mom, dad, cousins etc. They defaulted on the payments while buying themselves new cars and pretending to run an "investment club" on the cash back from his family's deals.
TJ bought apartment communities in Hudson and Shakopee and played the same straw buyer game.
------------------------
I may have more soon. A lot more.
Can this blog host a PDF file? We're taking brochures and spreadsheets, here, people.
To Don Corleone: I'm not clear whether you're alleging "similar tactics" or an actual connection between DW and TJ Waconia.
Victim T: you need to email me. We need to have a back channel discussion about some info that "Don Corleone" wants to provide subject to a certain condition which only you can help me to accomplish.
You know my email, right?
THE E-MAILER CALLING HIMSELF OR HERSELF "DON CORLEONE" SENT ME THE FOLLOWING RESPONSE WHICH CONTAINS DETAILED AND COLORFUL ALLEGATIONS I AM *NOT* ABLE TO VERIFY OR CONFIRM ABOUT CONNECTIONS BETWEEN TJ WACONIA AND "DW."
-------------------------------
Actual connection. The examples i sent you are from a development owned by TJ. Apple Valley Townhomes sold to [NAME DELETED BY JOHNNY NORTH SIDE] were sold by TJ with DW acting as buyers agent.
Here's an example of how it worked...
TJ would buy, build or source properties at a "discount". This could be the homes in North, Condo Conversions or new construction. The discount was not an actual discount, but rather houses that could appraise for more (usually by Balko or one of his henchmen) and create a cushion between what the net sales price would be and what the appraised value would be.
The purchase agreements would be written for the higher appraised value. There would be an addendum to the pa which would state that the seller would pay a "management expense" to a third party (which would be the investment group). This addendum would be "accidentally" left out of the file when submitted to the lender (underwriting guidelines generally prohibit this I found out). But the title company always seemed to get a copy of it.
Then at closing, a check is cut to the investment group for management fee, another check to investment groups's real estate broker for real estate commission. Then after closing the investment group signs a contract for deed to "purchase" the property back from the new buyer.
then the investment group is supposed to make monthly payments to the bank on behalf of the new buyer for a period of two years, after which the investment group says they would refinance the note into the company name and out of the buyer's name.
the whole process looked very official and prospects and partners were
referred to a lawyer who said everything was legit. teh straw buyers were paid $5-10 grand per property right after the closing and were promised another payment when the loan was refinanced in a few years. so straw buyers think they are renting their credit to the investment group and at worst case have an asset they can sell if the investment group should default.
problems occur when the investment group commingles the funds and starts spending them on office supplies, rent, payroll, and buying new cars, or even putting the funds up as earnest money on new projects. then add the fact that most units sit empty and dont bring in any rent at all. worse yet imagine if the company knowingly hires 2 convicted felons back to back to run the books.
Check the pioneer press article that follows. Then after
that mr. w decides to trust the intern he hired from a halfway house where she was coming off a conviction of check fraud. Check mn criminal history of Gina Leah Daszczyszak. Ms. Gina runs off with about $60k worth of investors money, half of which Mr. W knowingly "loans" her.
Now he can conveniently blame her embezzlement for the fact that he is defaulting on 20+ investor properties. Cops cant charge ms gina for anything because wills admits to telling her she can sign his name on a few checks. How convenient.
Last i heard these guys are using the internet to find buyers for similar deals in FL.
Would be interesting for a guy to call them and request info about their "programs"
[RUBEN ROSARIO ROCKS. THE USE OF THIS ARTICLE HERE CLEARLY FALLS UNDER THE “CRITICISM AND COMMENTARY” EXCEPTION TO COPYRIGHT—JOHNNY NORTH SIDE]
St. Paul Pioneer Press (MN)
January 14, 2007
Section: LOCAL
Edition: St. Paul
Page: B1
A SECOND CHANCE, ANOTHER SCAM?
RUBEN ROSARIO Like a bad penny, convicted embezzler Elizabeth *
Kingsley-Young* just keeps popping up in Roger Neilsen's life.
Six years ago, Kingsley-Young, 52, was sentenced to 30 months in federal prison for embezzling more than $120,000 from Neilsen's business, Master Framers of St.
Paul.
The crime nearly shuttered the framing shop, a Lowertown fixture.
"It is still devastating to us," Neilsen said. "It took us years to figure out the state of our finances before we were bankable again. We had to take a second mortgage on the building and are still in debt, paying off a loan because of it."
Last summer, Neilsen got a call from a credit-check company telling him Kingsley-Young, released two years ago from prison, was back
in town. She had put him down as a relative and a reference for an
approval.
"She sure as hell isn't a family member," Neilsen told the
caller.It didn't much surprise him when he was informed that Kingsley-Young was arrested last fall on suspicion of felony larceny in a case involving a Bloomington-based investments firm.
The company, DW Investment Group, had contracted Kingsley-Young's services this summer as a grant proposal writer and potential partner in a transitional housing project.
"I had no idea," DW Investment Group's president, Stefan Wills, said after first learning of Kingsley-Young's extensive criminal past from Bloomington police. *Kingsley-Young* says, however, that the arrest is bogus, and she expressed confidence no charges will be filed.
"That property is actually mine from the partnership," she said Thursday. "This whole thing stemmed from a basic greed situation with DW Investment.
"Last week, DW Investment launched an internal audit after reading my 2001 column about the Master Framers scam.
"Some of the patterns of what we read about with Master Framers
sounded very similar," he said.
Kingsley-Young has not been charged, pending the outcome of the audit and ongoing police probe. Federal authorities also are probing whether the arrest violates the terms of her probation, which ends in February.
The FBI, which worked the Master Framers fraud case, was also notified.
The arrest has cops and others wondering whether Kingsley-Young mended her ways or went back to them shortly after her release in 2004.
"That's what we would like to know," Bloomington police
detective Douglas Barland said.
Wills acknowledges that he did not conduct a criminal background check on Kingsley-Young.
Kingsley-Young* said Wills and others were aware of her criminal history. A transsexual, Kingsley-Young* has a string of white-collar scams that date to when she was 19 and known by her birth name -- Robert Villa.
Wills met Kingsley-Young last spring through two members of the Tree of Life Community Church in
South Minneapolis.
At the time, Kingsley-Young was helping to find housing,
jobs and other help for transplanted Hurricane Katrina victims through the church's Urban Oasis outreach program. Wills' firm was seeking a nonprofit partner to provide transitional housing and financial literacy programs for ex-cons and others.
Willis said Kingsley-Young, described by cops and others who've gotten to know her as an extremely bright and intelligent person, regaled him with a glowing summary of her experience as a grant specialist and former head of a multimillion-dollar real estate and title
company.
He said she also mentioned operating a nonprofit, Empowering
Resources Inc., which was designed to find temporary housing and other
assistance for released offenders. It sounded like a perfect fit. Wills
contracted Kingsley-Young and provided her office space. But he and other firm officials began to doubt Kingsley-Young's proclaimed expertise after three months.
The firm terminated Kingsley-Young's services for
nonperformance and other reasons. A week later, Wills learned that, without his firm's knowledge or permission, Kingsley-Young had set up a post office box in St. Paul to receive mortgage payment statements from a firm client. Kingsley-Young used a post office box scheme in the Master Framers theft, according to an indictment in that case.
Wills gave Kingsley-Young a week to return the company's confidential materials, software and supplies. Cops were called, and the items were recovered from Kingsley-Young's apartment after the execution of a search warrant.
Tree of Life's pastor, Warren Carey, confirmed Kingsley-Young worked at the church for about a year until she was let go in May.
"We knew she had a criminal past, and we believe in giving people two, three and four chances and helping them to get to the next level of their lives," Carey said. "She did get resources for people, but she was also serving herself way too many times," Carey said.
He declined to provide details. Kingsley-Young maintains she was not released from the church for any wrongdoing but rather that her contract simply expired.
As for her company, which she said was formed 4 1/2 [MISSING WORD HERE?] ago, documents indicate it was actually incorporated as a nonprofit Dec. 13, several weeks after her arrest. Its location is Kingsley-Young's residence.
At her 2001 sentencing, Kingsley-Young was ordered to pay $123,294 in restitution to Master Framers and several other victims clipped in the scam. Neilsen, who hired Kingsley-Young as a receptionist and bookkeeper, said he has received about $600 so far.
"Actually, I almost hope that I don't get (the rest)," he said. "If I did, I would first worry about how she got the money.
"Online: Read Ruben Rosario's Dec. 10, 2001, column about Elizabeth
Kingsley-Young at www.twincities.com.
A POSTER CALLING HIMSELF "GORDON GUY" RECENTLY POSTED THE FOLLOWING INFO ABOUT THOMAS BALKO AND JON HELGASON IN A FORUM CALLED THE "RUBE CHAT."
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These guys would overvalue the house and use their "investors" social security number to buy it, then rent it out under section 8 collect all the rent money and not pay the mortgage. Friends of my wife's woke up one morning and found out they owned 9 homes in MPLS.
We didn't get involved in the mortgage scam thank god. These guys bought the dance studio from my mother in law and my wife ran it. When stories started to come out about possible trouble with the F.B.I., payroll checks started bouncing, my wife started asking questions and was fired.
Tom and Jon had also not sent her mom any money since Sept. She's out hundreds of thousands. We are involved from the studio end of everything. He hasn't paid his employees for their last two weeks of work and getting w-2's for the uncoming tax season looks to be tough to say the least.
Gordon Guy is better know as Brian, from Rogers. He has it hard for Helgeson and Balko too.
In reply to Nathan Jesh, I believe that he worked for Total Title under Tom and Jon as a residential closer.
How clean or dirty is Total Title? Anybody got an opinion? Info? An axe to grind?
Total Title was operated out of an office in Brooklyn Park. It was little more than a two man operation. It was owned by Jon and Tom. It was on the same concept as the universal title satellites. All title insurance went through universal, but all fees were Jon and Tom's. Jon required all his mortgage people to use them. I will bet every file they've done is through total title.
When it comes to title, the only dirty thing you can really do is not give the buyer a choice of title companies, which by law they do have to be given the choice.
The businesses never made it on their own. They survived by Jon and Tom scamming straw buyers which in turn kept each operation going. Once the pyramid ran out, like last spring, they got in trouble. It was just a matter of time.
So are you saying the only dirty thing you can do...is precisely what they did? But, to counter argue: most buyers will go with whatever title company is recommended by whoever they trust in the transaction, right? Was there anything dishonest about those transactions BESIDES there not being a choice? (Which most buyers don't care about, anyway?)
Were the fees too high, for example?
"When it comes to title, the only dirty thing you can really do is not give the buyer a choice of title companies, which by law they do have to be given the choice."
I highly doubt there is a law that states a buyer must be given a choice.
I have always been told by Realtors that since the seller is expected to buy a title policy, the choice is usually theirs and the Realtor will usually suggest one.
OK, so somebody claimed there was a law. Can the law be cited? Chapter and verse? There are so many real estate people buzzing around these blogs, somebody must know.
Inspector Gadget:
I am hereby laughing at you. But not funny "ha ha."
Johnny Northside:
Slow down, Frenchy! Seriously, you always go overboard at the wrong times. Whats with the Russian novels? You are entertaining and bring the element of drama to the table though.
The Preacher:
Don't you think you have had one too many Bloody Mary's? Lay off the altar boys already!
Victim T: AKA Terese P****ee of Apple Valley
You aren't even listed on the law suit! Why? Would it be because... It wasn't your money???
You poor victim you!
$700,000+ house in Apple Valley... AND
$250,000+ condo in Florida... AND
A cozy lake house in Minnesota! Any others we missed?
I heard your own husband told you not to say anything to Jon when you saw him.
Why don't you hop a flight down to Panama with your employee fly's free with Continental Airlines and continue the crusade there.
I'll give you this though... you give new meaning to the term, "fraud." LOL.... Wasn't even your money! Were you even married then?
10 to 1 says you won't be after all this is over.
Oh oh oh... almost forgot.... That was really petty of you to suggest that people go after the college funds belonging to the "innocent kids."
Good luck on the Class Action lawsuit because you certainly lack the CLASS!
See my postings in response on the "Minnesota Forum" under "Mortgage Fraud." I did some digging. Not sure how far I got, though.
I note some folks (like the last poster) are posting here and there in duplicate. SUCH A PAIN.
Another reason to post pictures on this blog. It will keep people here.
JOHNNY NORTHSIDE
Who's fault is it when you are involved in mortgage/real estate fraud as either a victim or an accomplice?
The answer to that question is a gray area.
In my opinion I believe the so called "professionals" (brokers, agents, loan officers) share most of the blame because as "professionals" we know how every mortgage tool (loan) works. There are not good or bad loans. Everyone has different needs therefore there are different loans for every different situation. However, there are scammers that pray on the ignorance of the public and sell loans focusing on their own profits as the bottom line. But as expected some people defend their actions as you can read here:
http://micasamidinero.com/myhome/2007/sanjose-broker-fraud/
or in a different post (Spanish blog) here:
http://micasamidinero.com/2007/fraude-century21-norma-valdovinos/
Next, are the appraisers and title companies that might of seen irregularities with certain loans but because they were getting paid good money decided to go along with it. I understand that escrow officer are a neutral party and they often dont see the whole picture of why a client might choose a certain loan but I know they turned the other way because they were getting deals to close in their offices. Same goes with appraisers for letting scammers influence them into giving false overinflated appraisals. Underwritters are at fault for "letting some files" squeeze by, under the request and pressure for more production from the company.
Lenders and wall street investors for acting like hungry hyenas. As soon as they saw an opportunity to eat, and eat good, they took it. As soon as they saw the consumers eager to own real estate, they relaxed their guidelines, offered "lier" loans with 1% interest payments and "no money down." They were also looking at their own pockets as the bottom line. It wasnt that they wanted to increase homeownership in the communities the served, it was that they wanted to increase their profits. After they got their money, they passed the buck to the next guy by selling those risky mortgages.
Last but not least (and I know I may hurt some feelings here, but we need to hear the truth and sometimes the truth is hard to hear it), it is the consumer. I dont think they share much of the blame to what is happening to them and everyone else but nevertheless, they share a smaller part of the blame.
What did you think when you saw your brother/neighbor making a lot of money in real estate? What did you think when you saw he owned 2-3 properties? You thought...wow, if he can do it, I can too. What did you think when you saw those "get rich quick & easy with real estate" infomercials on TV? What did you think when your agent/loan officer told you, you can buy this house and only pay this much and later you will become rich? You thought well, if its on TV or if this "professinal" is telling me this then it must be real! What did you think when your agent/loan officer told you "dont worry about it, I'll take care of everything? You thought "well, this "professinal" is taking care of everything then may be I should not worry about it."
Am I right or am I wrong?
I know some (may be most) of you WERE NOT greedy and did not want to get rich quick and all you wanted was simply to own a "home," but if that is all you were looking for then why didnt you do your homework and research?. Buying a home is not a privilege, it is a responsability that costs hundreds of thousand of dollars therefore it should've been carefully planned.
So at the end of the day, there is plenty of blame to go around and I understand who shares big part of the blame but what we all need to do now is the right thing. We need to lear from our own mistakes because that is how we grow and take corrective action. If you were a victim, dont sit there feeling sorry for what happened, report the unethical agents/brokers/loan officers to the corresponding authorities:
http://micasamidinero.com/myhome/2008/real-estate-mortgage-fraud-victim/
And think that you are not alone and you will get through it. It may take some time but you will get throught. And next time, please dont take the easy route.
PS: Victim T, keep "blowing the whistle" regardless of the criticism
I dont even know these people, but when i pull up my name it says i was involved in this! I will take legal action for slander. Never even heard of these people! I know DW but i never ran off with 60,000.00 yesi had a gambling addiction, yes i wrote bad checks but all this was 8 years ago! I have almost 8 years in recovery and i am a woman of God! Im a working member ofsociety. Had i not been an addict i would have never made the choices i did. Im sorry for the victims of these people i hope you get justice and find peace. But this story with my name in it is totally false! Im just now finding out about it. God bless!
John Helgason has money, I can point the FBI to it
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