Legal Sentencing on Mortgage Fraud

People have posted many times wondering how much time Jon and Tom and whoever else was involved will get if convicted. It was amazing to me how many indictments and convictions are out there. I am not commenting on how much time I think they should receive if convicted, but it does not look favorable for them.

Basically it looks like the law allows the following sentences:

The conspiracy to commit mail and wire fraud conviction carries a maximum statutory term of imprisonment of five years, without parole.

Each of the wire fraud and mail fraud convictions carry a maximum penalty of 20 years imprisonment, without parole.

One article claimed this:

Houston Texas Man Convicted of Mortgage Fraud, Could Face Almost 200 Years in Prison Without Parole

Two cases listed below are also straw/interim buyer schemes where the convicted claimed they would cover all the costs, rent out the properties, etc.

The last link contains many stories.

http://houston.fbi.gov/dojpressrel/pressrel07/ho07262007.htm

http://www.bizjournals.com/atlanta/stories/2008/02/11/daily21.html

http://www.mortgagefraud.org/display/ShowJournal?moduleId=78225&categoryId=5901

Community Responsibility

There have been bloggers that talk about the fact that North Minneapolis was in bad shape before Jon and Tom arrived on the scene. Thus what is the big deal what they did? Someone also stated that we have put millions of dollars into these neighborhoods and nothing changes.

How this makes what they did acceptable absolutely baffles me. How short sighted can someone be?

We spend millions trying to feed the hungry all over the world and there is still hunger. Would that make it acceptable to steal what rice and grain they have available?

We spend millions trying to eradicate child pornography and it is still a major industry. Would that make it acceptable to buy child pornography?

We spend millions on preventing domestic violence, yet women and children are still abused in this country everyday. Would that make it acceptable to take advantage of these victims in their time of need?

If you still do not believe that the Helgason's and Balkos' did not harm North Minneapolis and that boarded up houses are not an issue. Please read below

Minneapolis revokes rental licenses from 45 properties
by Brandt Williams, Minnesota Public Radio
February 29, 2008
St. Paul, Minn. — The Minneapolis city council has revoked the rental licenses on 45 properties located in north Minneapolis.
Council members say the properties were owned by TJ Waconia, an investor group under a federal flipping investigation. All but nine of the properties have been abandoned and city officials say they believe the company owns perhaps 200 properties in Minneapolis.
Council member Don Samuels represents a section of North Minneapolis particularly hard hit by the rash of mortgage foreclosures.
He said the people involved in the alleged scam are part of a crime problem that most residents aren't aware of.
"The young men who sell drugs on the corner get such ire from us, because we see them everyday. We don't see these characters," Samuels said. "They're just names on a page. And yet they create and wreak way more havoc, than 10 drug dealers per house in this case."