People have posted many times wondering how much time Jon and Tom and whoever else was involved will get if convicted. It was amazing to me how many indictments and convictions are out there. I am not commenting on how much time I think they should receive if convicted, but it does not look favorable for them.
Basically it looks like the law allows the following sentences:
The conspiracy to commit mail and wire fraud conviction carries a maximum statutory term of imprisonment of five years, without parole.
Each of the wire fraud and mail fraud convictions carry a maximum penalty of 20 years imprisonment, without parole.
One article claimed this:
Houston Texas Man Convicted of Mortgage Fraud, Could Face Almost 200 Years in Prison Without Parole
Two cases listed below are also straw/interim buyer schemes where the convicted claimed they would cover all the costs, rent out the properties, etc.
The last link contains many stories.
http://houston.fbi.gov/dojpressrel/pressrel07/ho07262007.htm
http://www.bizjournals.com/atlanta/stories/2008/02/11/daily21.html
http://www.mortgagefraud.org/display/ShowJournal?moduleId=78225&categoryId=5901
Basically it looks like the law allows the following sentences:
The conspiracy to commit mail and wire fraud conviction carries a maximum statutory term of imprisonment of five years, without parole.
Each of the wire fraud and mail fraud convictions carry a maximum penalty of 20 years imprisonment, without parole.
One article claimed this:
Houston Texas Man Convicted of Mortgage Fraud, Could Face Almost 200 Years in Prison Without Parole
Two cases listed below are also straw/interim buyer schemes where the convicted claimed they would cover all the costs, rent out the properties, etc.
The last link contains many stories.
http://houston.fbi.gov/dojpressrel/pressrel07/ho07262007.htm
http://www.bizjournals.com/atlanta/stories/2008/02/11/daily21.html
http://www.mortgagefraud.org/display/ShowJournal?moduleId=78225&categoryId=5901
86 comments:
Job 27:14‑18
However many his children, their fate is the sword; his offspring will never have enough to eat. The plague will bury those who survive him, and their widows will not weep for them. Though he heaps up silver like dust and clothes like piles of clay, what he lays up the righteous will wear, and the innocent will divide his silver.
The Preacher
Preacher
May those without sin cast the first stone.
Preacher...
Haven't I seen you in a bunch of movies, playing the whack-job guy that claims the world is ending?
If it wasn't you... I bet the people that DID play those roles, referred to you when they researched the part.
I've also heard some very LOWBALL figures thrown around for how much time they will do, like as little as 13 months. I honestly don't know what to think.
Johnny Northside
http://adventuresofjohnnynorthside.blogspot.com
Oh johnny - You just ruined Victims T day, by saying that. Now how is she going to sleep at night, knowing that it could be as little as 13 months?
god forbid any of you are ever accused of anything, I'd hate to see how you handle being labled guilty before the legal process even has a chance to work.
Hey look everybody, there goes a woman who looks like a witch! lets get her. Sad state of America.
I do not believe anyone that has come in contact with them needs to wait for a legal decision to know they are guilty. They will probably not even get the legal justice they deserve.
The Helgason's, Balko's and Gail being called guilty is the under statement of the 21st Century ( not the 17th century when we went after witches).
If they are innocent, why don't they come forward and defend themselves? The witches came forward and claimed what they were doing was not evil; they did not hide behind protection orders. I think we would all enjoy hearing from Scumbag I and Scumbag II as to why they are innocent of all charges?
As for the witches, they were given the option to plead innocent, but then they would face a trial without lawyers or the ability to call witnesses on their behalf. How can you compare the two? Scumbag I and Scumbag II have had nothing but the protection of lawyers and being presumed innocent.
But do not doubt, they will be found GUILTY. Should they be burned at the stake?
Victim T will not sleep until they are burned at the stake.
"Anonymous said:
I think we would all enjoy hearing from Scumbag I and Scumbag II as to why they are innocent of all charges?"
What ARE the charges?
Thankfully, the Lynch Mob has been gone since the 1800's but the Idiot Squad seems to have survived.
Hey Victim T, have they been charged with anything yet?
Kyle McLean from Realty Executives in Blaine help Tom and John buy the houses before they sold them back to the victims on CD.
To think all that some victims got was $2,500 per house. I wonder will we end up paying income tax on the $2,500 per house.
I would think the "charges" are very apparent, where have you been?
"Anonymous said...
I would think the "charges" are very apparent, where have you been?"
I have been in what is known as the "real world."
Victim T (among others) seems to live in her own world, where someone does not have to be arrested, charged, tried and then convicted to be guilty of wrongdoing.
So I will ask the question again, "What ARE the ACTUAL (by the proper authorities) charges???"
Watch... If they end up with anything less than life in prison or the death penalty, Victim T & Co. will cry foul and say the Justice System is "Stupid."
Agreed with the last poster - To the poster before that: Where have you been, Idiot? You state charges are very apparent, I asked, have they been charged. Not in the minds of the victims, but with the authorities? The latest I heard, they have not as of yet. So again, what are the charges, come on Einsteins, you all know so much, give me the dirt.
It will all come down to how the loans for the victims were obtained by John through Complete.
My bet is the feds will find something. Hard to sell 20 homes to someone with out tripping up somewhere.
Maybe IPD was not as innocent as they claimed on here. Also how can you sue a blog opinion, what a joke.
Anonymous said...
I went to your IPD workshop.
Steve Carver was the main speaker and Real Estate Agent.
Bob Rick said he worked with builders to get the discounts and was the builder rep.
Buy a house for $250,000 get 10% back after the house close.
Not a good deal if the house is 10% over priced.
Not a good deal for the banks.
Seems like they are setting people up to fail.
http://www.goipdirect.com/
"Anonymous said:
I think we would all enjoy hearing from Scumbag I and Scumbag II as to why they are innocent of all charges?"
What ARE the charges?
Thankfully, the Lynch Mob has been gone since the 1800's but the Idiot Squad seems to have survived.
O.K. they have not been charged yet by the authorities, but I think all of us "idiots" know it is just a matter of time.
So how about this, why don't Scumbag I and Scumbag II come forward and defend themselves against what people on this site and others are claiming. Give an actual explanation, not just calling people names.
Oh that is right...........they no longer have computers, the FBI has them according to the search warrant.
Anonymous said:
"Oh that is right...........they no longer have computers, the FBI has them according to the search warrant."
There ya go! See what happens when you take a minute to consider your own questions?
You come up with your own answers all by yourself!
Come on. People please. Jon and Tom are on here every day.
So in regard to this guy, whose name came up:
Kyle McLean from Realty Executives in Blaine
What is the story with him? Does anybody know?
so are these ass clowns still doing any kind of business? i know tom ripped off a bunch of people with the dance studio. how long can that sustain him.
or is jills boyfriend taking care of tom. or should i say boyfriends
This story just hit. It appears more revocations of rental licenses are coming down the pipe for more TJ Waconia properties.
http://www.tcdailyplanet.net/article/2008/03/22/moving-harmful-housing-deals.html
ARG. The URL didn't work well, so I'll just share the article for commentary.
--------------------------------
Moving in on harmful housing deals
By Gail Olson , North News
March 23, 2008
As Minneapolis’ foreclosure nightmare continues to unfold, some North Minneapolis residents say they’re having a sense of déjà vu.
“What is this doing to our neighborhood?” asked Jordan neighborhood resident and real estate agent Deb Wagner. “We are certainly distressed by all these blighted properties. Our own property values are going down. Now we’re fearful that [home] prices are just going to plummet again. Very little is selling, with the exception of the foreclosure properties.”
The worst part, she added, is that “Investors once again are swooping into the North Side and picking up houses. Judging from past experience, the next step will be that they will fill our neighborhood up with bad renters.”
Wagner said that in Jordan, most of the houses now in foreclosure were rental properties owned by absentee landlords. Many of their tenants had caused problems for other residents.
Last Friday, the Minneapolis City Council voted to revoke 45 rental licenses on vacant and boarded properties held by T.J. Waconia, Inc., a company that the Federal Bureau of Investigation is investigating for mortgage fraud. All but one of the houses is in North Minneapolis, and most are north of Lowry Avenue.
City staff’s “Findings of Fact” for 10 of the 45 properties, owned by a couple, paints a typical scenario of what was happening. The owners turned their properties over to Jon Helgason of Chisago City and Tom Balko of Rogers, co-owners of a company called T.J. Waconia, a Roseville-based real estate business. Helgason and Balko obtained rental licenses from the city and appointed property manager Ronnie Franklin.
(Helgason and Balko’s home phone numbers in Chisago city and Rogers are unlisted; there is no phone listing for T.J. Waconia in Roseville.)
Several more people were brought in and listed either as owners or “persons with interest in the property.” Some of the couple’s properties are in the 3200 to 3800 blocks of Aldrich, Emerson, Humboldt, Knox, Vincent and Queen avenues N.
State Senator Linda Higgins, a North Side resident who worked in Minneapolis’ Problem Properties unit, said that Roberta Englund, executive director for Folwell Neighborhood Association, “had alerted us to the fact that some entity was buying all these properties. “We started tracking them, monitoring inspections orders, taxes, water bills. They were almost always paying the property taxes, but often not paying the water bills. They owe the city many thousands of dollars in unpaid fees. The properties were not being maintained. Many ended up vacant.”
Most of them are single family homes located between Dowling (to the north) and Lowry (to the south) avenues, she added, in the McKinley, Folwell, and Victory neighborhoods.
The fast and numerous property sales had an adverse effect on the North Side’s housing prices, Higgins added. “They were controlling the prices of housing here. Houses worth $110,000 to $120,000, which were affordable in the market, would sell for $150,000 to $160,000. After you do that for three or four properties, all in a contained area, when you set the price for the next bunch, they sell for $200,000. All of a sudden you’ve got a $110,000 single family house selling for $200,000.”
Higgins said T.J. Waconia “took a lot of owner-occupied properties and turned them into rentals. That was one of the things that compelled the city of Minneapolis to raise the conversion fee for turning an owner-occupied property into a rental.”
(Minneapolis City Council members also voted, at the Feb. 29 meeting, to increase the annual registration fee for a vacant and boarded building from $2,000 to $6,000. Council Member Gary Schiff said there are 800 boarded properties in Minneapolis, and 90 percent of them have required “at least one police call, grass cutting, rubbish removal, re-boarding or visit from the fire department.”)
Higgins said that even though the 45 properties changed ownership several times, “we consider them all Waconia properties because they had their hands on them at some point.” She pointed out that “when they sold their properties, they tended to sell them in batches, selling three or four to somebody.
“All of a sudden, these people would have millions of dollars worth of property. In our predatory lending hearings at the Legislature last year, we discovered how lax the lenders were on documentation. They were giving ‘no doc,’ or no documentation, loans. Who lends somebody money to buy 12 properties? Most of us have trouble qualifying for one.”
Higgins said that the situation has been terrible for people living in North Minneapolis. Last week, she had talked to one of the constituents in her district. “He said there were nine vacant properties on his block. At least one of them was a Waconia property.”
Janine Atchison, district manager in Minneapolis’ housing inspections services, said the city isn’t finished revoking rental licenses on the T.J. Waconia properties. “We did it in two phases. We have to take a legal approach to this and move carefully, but there are 58 more [revocations] coming. The stack of paper I took in [to the council meeting] for the first 45 was 12 inches thick.”
Atchison said she became aware of the situation when a North Side housing inspector noticed “weird ownerships, weird stuff going on with the properties,” and reported it to the inspections department. “The person who was listed as the contact was never responsive to the housing inspectors, and was not showing up for appointments. We brought it forward and had Problem Properties get involved. Linda Higgins started doing research. We looked at all the problems with the different properties; they met the criteria for revocation.”
Atchison said that one standard is that “you can’t have more than two revocation orders; then you’re no longer eligible to hold a rental license in Minneapolis.” Although there are five different owners listed for the 45 properties that the council dealt with last Friday, Atchison said T.J. Waconia had ownership interests in all of them.
“It was very difficult to put this together. Linda Higgins did a tremendous amount of research. She has a box full of documentation. I was concentrating on the housing code violation piece. We were having trouble getting the owners to respond.”
When asked if the properties had any common elements, Atchison said, “I don’t think they were buying junk properties, necessarily. But they weren’t maintaining them. They started to drop below standards.”
Atchison said city staff started seeing a trend. “Some of these houses were being sold every four to six months. They would see that even after a sale, somehow T.J. Waconia still owned it.
About six of the 45 properties are still occupied, Atchison said, and in the next 58, between 9 and 15 properties are occupied. (The tenants will have to move out, when the property is no longer licensed as rental property.)
Owners were given the opportunity to bring their properties into compliance with the city’s rental housing code, and they also had the opportunity to appeal, after being notified that the city intended to revoke their rental licenses. The owners did not respond and did not appeal the revocation of the rental licenses, she added.
“The piece I don’t know is, who’s collecting the rents?” Atchison asked.
She said the ordeal has been hard on the neighbors. “The owners weren’t screening tenants. Now that the houses are vacant, nobody is taking care of them. In the summer, who will cut the grass? Probably the city. It’s a bad deal all the way around. This has been very devastating for the neighborhoods on the North Side. They were already suffering from foreclosures overall. It doesn’t look like this company was acting on the up and up.”
Englund, of the Folwell Neighborhood Association, said she and her staff have been tracking T.J. Waconia transactions for about 20 months. “In the beginning, our concern was that they were turning into rental properties. Gradually we realized that these people were buying properties on a grid [specific areas], and creating their own comps [comparable sale prices that help lenders and appraisers determine a similar house’s value].”
Some of the properties were becoming problems, she added, “and meanwhile we were realizing that there was a continuous upward march toward owning land and buildings.”
Englund contacted Fourth Ward City Council Member Barbara Johnson, who “got very serious about it. She was the anchor in the storm who motivated us to continue. When the list reached almost 200 properties, we delivered it to her. She delivered it to the FBI.”
Now neighbors are watching the properties fall into foreclosure and become vacant. “We have a great deal of empathy for the people who have lived in these homes,” Englund said. “They [Waconia] have caused irreparable harm, and it is going to take a long time to recover.”
Paul McCabe, of the FBI, confirmed that there is a federal investigation of T.J. Waconia. As it is an on-going investigation, he added, “we just don’t make any comment.”
According to local news reports, T.J. Waconia purchased hundreds of properties in Minnesota between 2003 and 2005, in an area that stretched from southern Anoka County to eastern Dakota County. Lenders foreclosed on approximately 150 of their north Minneapolis properties in a six-month period in 2007 and 2008.
Information on all of the property addresses and city actions is available on the city’s website, www.ci.minneapolis.mn.us, under the city council’s Feb. 29 agenda and the Public Safety and Regulatory Services Committee’s Feb. 20 agenda.
I live in Phoenix and knew Jon and Amy very well several years ago while living in Minnesota. Its sad to read about what has transpired with them, their partners and victims and will not add any specific comments since I am not involve. I am including a link to a Blog that was written up in the Arizona Republic about another Mortgage Fraud business based in MN with offices in Phoenix and elsewhere. Is TJ Waconia associated with this mortgage fraud scam too?? What is going on with the "Minnesota Nice" people involved with all this mortgage fraud. Sad to see, especially when most of us are just trying to make an honest living in this uncertain economy.
http://www.azcentral.com/members/Blog/
WATCHBLOG/19816
Yes, please do check out this story about Universal Mortgage.
http://www.azcentral.com/members/Blog/WATCHBLOG/19816
I'm glad to say I was the guy who tipped this reporter, Robert Anglen, and provided a ton of info to him. But Robert was the one who did the real work and dug stuff up, so all credit and praise to Robert Anglen, for the record.
I also PERSONALLY NOTIFIED the authorities of EVERY STATE where Universal Mortgage (the one owned by Donald Walthall) had licenses, in some cases filing "pro forma" complaints to get the ball rolling.
Especially in Florida. Ha ha. My little in-joke to myself. Florida is real interested in this, but real hampered from doing anything, so I filed an especially creative and legalistic (but bona fide and valid) complaint in that state to help get the ball rolling.
In the not-too-distant future, I'll be putting the "back story" about this article on my blog, www.johnnynorthside.com. I've been holding off because Anglen--who has been nominated in the past for the Pulitzer Prize--was in a much better position to dig into the story about the Arizona location for Universal Mortgage.
However, if you read this story you'll find there is a huge issue of there being a mortgage fraud investigation in Minnesota, but apparently little or no effort to notify the other states where the company had a license.
(The fact there are LOTS of entities called "Universal Mortgage" just makes life harder, of course, but one can distinguish who is who by finding the actual documents filed with the states)
I got lucky by doing an obsessive Google search and turning up a website used by Universal Mortgage that was so obscure it didn't turn up in most searches, except when I used a very specific term as part of the search. Finding that website was really the big break in tracking down all those state licenses.
I haven't had a break like that with TJ Waconia. I haven't seen any evidence TJ Waconia ever filed licenses in other states. I'd sure like to know for sure, though. And I'm asking.
Please note Universal was licensed in all those states, but they weren't doing much business there. Yet. They were clearly gearing up for even bigger schemes.
So this makes me want to know... this makes me CRAZY to know... was TJ Waconia licensed in any other states?
So this is the word I got through back channels: TJ Waconia was not licensed in any other states, but I should feel free to waste as much time as possible looking for proof to the contrary.
Actually, at the moment I'm busy looking for electricity theft in the nearly Third World conditions on the North Side.
But I've said it before and it bears repeating: this wasn't all T.J. Waconia. Not by a long shot. And I've commented on my blog about, geez, what's up with the authorities slacking off on investigating mortgage fraud because, oh gee, there's just so much of it?!
The FBI and US Postal Service are still scheduling interviews.
Rumor has it they may not be completed until late Spring. So I guess T&J still have a few more months of freedom.
As so eloquently put by Mr. Northside: "But I've said it before and it bears repeating: this wasn't all T.J. Waconia. Not by a long shot." If we are in fact looking for the source of the problem of North Mpls, perhaps we should look beyond the accusations of this blog and look to the enormity of the problem itself, not a personal vendetta.
But putting Jacke and Ass behind bars is a good start.
Minneapolis' two favorite scumbags are making more headline news.
They got a nice clip on KARE 11 yesterday
http://www.kare11.com/news/news_article.aspx?storyid=503120
They also had a feature on KSTP, channel 5 last night, complete with Tom denying any wrong doing from his house. (sorry no link)
So....to all of Tom and Jon's family who keeps posting about their innocence, why don't you take the blinders off and face reality. You raised two losers and soon you'll be driving the grandkids to the prison yard to visit dear old daddy for 15 minutes every other week.
By the way, where's Tom's best friend and childhood chum these days? Wadkins, you still out there? Has the FBI come asking you any questions yet like they have with so many of Tom's other friends (how about the postal inspector?) No?, well, I'm sure in due time they'll be by for a nice visit. In the mean time can you please throw some more names under the bus in another effort to proclaim your innonence with your association with TJ Waconia.
They had an interview with Tom at his home. Can someone please post that on U-Tube? I want to watch that over and over and over.
Jim boy, still think they are only going to get a year? Looks like momentum is going to push that quite a ways out. Jump on the band wagon people. Let's make sure that number is pushed waaaaaaaaay out.
As a former partner of Jon H I am not suprised at all by what has transpired in the last year. Jon H ripped me off for atleast a 100k. I now look at it as very good fortune to no longer be in association with Tom or Jon. I met Tom when he was doing appraisels for me while I was working for another mortgage firm. He eventually introduced me to Jon and we started a new mortgage company. I hired everyone that had ever worked for Jon and was Vice President of his company for many years. One could tell that things just weren't adding up and fraud was occuring a few years after being in operation. When I continually brought these facts up I was bought out. Jon was running multiple companies out of one location and using our mortgage company to do his dirty laundry. It didn't take a brain surgeon to figure out what was going on. I didn't realize until afterwards the level of fraud and mistrust that was occuring on a daily basis. As a insider into the situation the driving force behind all the fraud was pure greed. This is why I was relieved of my postion and bought out when I asked too many questions and demanded my fair share of the pie. It was easier to just get rid of me. This worked out for me in the long run but at the time I was very pissed off. I chalked it up to a learning lesson and moved on.
I hope those 2 get exactly what is coming to them in a federal prison. Has anyone ever seen the show OZ? Doesn't look like a very fun place to be.
Hey Z. I was wondering what ever happened to you. You were totally screwed. Would love to hear from you. Hard to believe these two morons could go to this level. Well, they didn't. They got caught.
Anonymous you know me, but I'm not sure who you are. If you could provide me with your name or a hint I would gladly contact you.
hey z. email me at wth1992@yahoo.com i can verify that it is you there.
Mr. and Mr. Famous made the news in Miami and Ft. Lauderdale for the MN mortgage fraud. LOVE IT. No place left to run and hide...not the cabin...not the waterpark....not the mall....or anyplace else they're blowing other people's money to make yourself feel special.
Often we find it difficult to forgive because we think when we do we are letting that person off the hook. So the thinking is if we hang on to our hurt, we're going to punish them. That's the deception because we are only punishing ourselves. We continue to be the victim. But the whole picture turns around when we apply God's forgiveness to ourselves and then to the one who has wronged us. Christ's finished work on the cross broke the power of our sin and the sin of others over us.
Forgiveness is freedom. Whether we are seeking forgiveness from God for our own sin or in forgiving someone for his or her trespass against us, in every offense we have a choice. We can hang on to the hurt, refusing to forgive, opening the door to bitterness or resentment or revenge. Or we can forgive and experience a powerful freedom
Is Jon H. recruiting new people???
Check out the behind the mortgage blog: Yesterday there was a new post.
http://www.behindthemortgage.com/behind_the_mortgage/2007/11/foreclosure-dai.html
The post mentions a name of Mark Sczepaniak. When you google this guy's he comes a few places, Maple Grove and Roseville.
http://www.incredibleagents.com/real-estate-agents/MN/Roseville/Complete-Real-Estate-Services/Mark-A-Sczepaniak/index.html
The interesting thing is the Roseville info has him tied to a company called Complete Real Estate Services.
Lookup that company in the Yellow Pages and you get.....
Helgason, Jon - Complete Real Estate Svc Inc
Address: 1775 Old Highway 8, New Brighton, MN 55112
Phone: (651) 287-3400
New office Jon??? just down the street a few miles from where the FBI raided your other office.
That is an old post. Jons company complete real estate was housed there for a while on Old Hwy 8. He moved from there to the Roseville location many years ago.
What happened? Where are the Balko supporters? Big Bird? Trailer park family? Cat got your tongue? National news and it is now political. No snappy come backs?
Is it possible to post pictures along with a comment on here?
If so... There are a few great pictures of Terry "Wojo", drunk off his ass that might be fun to share.
"Fleet sales, line 2 please"
Come on. That is the best you got? Post drunk pictures? Where is the almighty defense of Tom? Oh wait. That is probably getting harder to do.
I know big bird likes to give out partial info. How about this.
xx4x Peony Lane
Maple Grove xxx
I'll bet the fine people in North Minneapolis would love this entire address.
Helgason – Balko, a.k.a Scumbag I & Scumbag II,
Apparently it was D-Day in the news for you two honorable citizens. It looks like you are finally exposed for the infiltrating smelly rats that you.
Your family must be so proud. Are your children embarrassed to go to school? Did Amy go to work yesterday? Is she still around, or now that the money has run out did she leave, greedy man that she is? Did you tell her to drive her convertible around now before they take it? I heard you think you can hang on to it all. I will personally be there for the Sheriff’s auction.
How does it feel to be in the cross hairs + of the City of Minneapolis, FBI, IRS, Postal Service.
I guess everyone on here has been wrong??
In regard to Mark Sczepaniak...his name came up somewhere in this whole mess earlier, and I posted it on Behind The Mortgage in the context where it came up.
The role of somebody with that name is a matter of record, and I've stated no opinion about whether he is a victim or involved or what because I just don't know. But his role is a matter of record, and no crime to state as much.
Well, a while back I got an email from somebody purporting to be Mark's lawyer. I'm not sure if the guy was really his lawyer at all, but the name checks out to a young lawyer, licensed relatively recently, quite a squeaky clean guy. Literally an Eagle Scout.
You gotta admire that. I'm not even kidding. I admire that.
Well, the guy purporting to be a lawyer--and Mark's lawyer--didn't say what he wanted in the email. Except he wanted to communicate and he stated who he was representing.
I sent back a super friendly email. I'd be happy to talk to the lawyer by email. Please, sir, feel free to respond.
So I waited. And I waited. And there was no response.
And there it is.
Having no further info...and respecting the gesture of wanting to communicate without, you know, blabbing it all over (I'm still not saying the name of the lawyer, actually) I said nothing about it.
But now the name has been tossed up here--by somebody else, not me, since I do what I do openly. So I'm contributing this to the discussion. There it is.
Huge days in the news, of late. Talk of "it's personal."
Wow. Kind of like an action movie, only more pinstriped. IT'S PERSONAL.
Could this all be a movie one day? It would make a cool movie.
Now, come on, you know in a few years at least a couple movies will come out of this whole mortgage fraud thing. Picture it.
Starring Irene Thomas as...HERSELF.
Now there's a nude scene Hollywood won't have to pay much for!
City Leaders Join Neighborhoods and Residents to Stop Fraudulent “Flipping”
April 2, 2008 (MINNEAPOLIS) -- Minneapolis Mayor R.T. Rybak and other city leaders today announced that the City is joining three north Minneapolis neighborhoods in a lawsuit against a fraudulent real estate scheme that has worsened the foreclosure crisis in Minneapolis.
The suit seeks redress from TJ Waconia, which engaged in a complex and fraudulent residential real estate scheme that converted owner-occupied homes to rental units, most of which have since been foreclosed and many of which are vacant. TJ Waconia’s practices have left many north Minneapolis homeowners unable to sell their homes or owing significantly more for their homes than they are worth.
Minneapolis is bringing two causes of action against TJ Waconia. One is under the Minnesota Tenant Remedies Act for violation of housing and other codes and seeks the appointment of an administrator to manage the properties to remedy code violations and mitigate costs. The second cause of action is under the Minnesota Prevention of Consumer Fraud Act and seeks to recover monetary damages as well as injunctive relief against TJ Waconia to prevent it from continuing its fraudulent activities.
Plaintiffs include the City, Folwell Neighborhood Association, McKinley Community, Webber-Camden Neighborhood Organization, Family Housing Fund, Greater Metropolitan Housing Corporation and local residents.
“TJ Waconia has caused significant and undeniable damage to the City, to our renters, to our homeowners, and to the neighborhoods of north Minneapolis,” Mayor Rybak said. “We’re fighting to take back these properties and regain control to rehabilitate homes, to put these homes back in the hands of sound homeowners, and to repair the community.”
“The City is stepping forward with our partners, our residents and our neighborhoods to address these fraudulent, damaging and unacceptable real estate practices in Minneapolis,” City Council President Barbara Johnson (Ward 4) said. “We’re sending a message to other investors that we’re aggressive in confronting fraudulent behavior and will not tolerate it.”
“TJ Waconia has stripped our neighborhoods of people and value,” said Council Member Diane Hofstede (Ward 3), who represents north and northeast Minneapolis. “We are filing this lawsuit to stop them from destroying our community and to send the message that these types of investors are not welcome in our city.”
“The foreclosures and vacated dwellings resulting from TJ Waconia have caused damage to the City including increased costs for inspection of buildings for code violations, boarding vacant buildings, providing increased police and fire protection, acquiring and rehabilitating vacant buildings, and providing maintenance such as garbage removal and weed-cutting,” said north Minneapolis Council Member Don Samuels (Ward 5). “We deserve redress for these costs.”
From 2003-2006, TJ Waconia purchased and flipped 140 north Minneapolis homes, 88 in three neighborhoods of Folwell, Webber-Camden, and McKinley. TJ Waconia’s systemic, targeted, and intentional over valuation of these homes used fraudulent appraisals to falsely inflate property values in north Minneapolis. Of 140 TJ Waconia homes, at least 108 are vacant and 89 have been sold through foreclosure.
TJ Waconia concentrated its practices in specific blocks of north Minneapolis, such as the 3200 block of Humboldt Avenue North, the 3300 block of Dupont Avenue North, the 3500 block of Aldrich Avenue North, the 3900 blocks of Colfax and Dupont Avenues North.
The City of Minneapolis has incurred damages as a result of TJ Waconia’s practices:
· City inspections staff responding to code violations
· Securing vacant and abandoned homes
· Acquiring and rehabilitating vacant homes
· Responding to increased criminal activity in vacant homes
· Increased costs due to unpaid water bills and garbage removal
· Administrative and legal services related
· Finding new homes for renters displaced by foreclosures
Neighboring homeowners have incurred direct and indirect costs due to TJ Waconia:
· Proximity to a vacant home has a significant impact on property values. This negative impact is multiplied when there are multiple vacant homes on a block, such as TJ Waconia has created.
· Property owners in the areas where TJ Waconia properties are concentrated have seen their property values decline as a result of TJ Waconia activities.
· Property owners in the areas where TJ Waconia properties are concentrated have experienced increased criminal activity and neighborhood unsightliness, which causes property values to further decline.
Renters have been harmed as a result of TJ Waconia’s foreclosures:
· Every home TJ Waconia flipped was used as rental property, resulting in 140 rental families without landlords.
· Loss of landlord results in property neglect, utility shut-offs and un-recovered damage deposits for renters.
· TJ Waconia’s failure to pay rental licenses forced renters out of their homes.
Neighborhood and community groups have spent thousands of dollars and countless hours attempting to remedy the problems caused by TJ Waconia:
· Funds were spent to acquire and rehab foreclosed TJ Waconia homes.
· Time and money were spent to research and track fraudulent TJ Waconia activity.
· Time and money spent by these organizations to investigate and fight TJ Waconia’s fraudulent practices could have been spent on other community improvement projects.
The lawsuit will be filed to the Hennepin County District Court. For copies of the complaint filed, go to the Hennepin County District Court.
Wow... somehow all the people who were defending T & J suddenly went quiet after that last post! I wonder if this "dose of reality" hits a little too close for comfort??? Suddenly these two bags of scum are squarely in the sights of the City, County and (soon) Federal legal crosshairs makes it not so fun to sit on here and shoot their mouths off... How about it defenders of those two assholes? Going to downplay this as "no big deal"??? In January 2008 there was a real estate scammer named Ida Mae James who was sentenced to 9 years in jail for similar circumstances... and she was involved with way less than 140+ properties. Plus she didn't have the mayor of Minneapolis leading the charge on her case...
Still want to say this is not big deal???
That's what I thought.
It was Tom, Jon and Tom's friend. That is it. Tom does not have any other friends. Not any that would want to admit it at this point. And Jon screwed over all his employees so badly, i'm surprised he feels safe leaving his home.
I find it very interesting that they have gone silent.
Maybe they just cannot stand to read the truth anymore or they have been advised not to make comments on the sites.
I wonder if they really thought they were going to get away with it?
Hey T - Bag, have you been on Hoffs site? You should really go there and read all the horrible things that are going on in your favorite neighborhood. Drugs, prostitution, shootings, you name it. Why arn't you down there helping him fix up the neighborhood, that you love so much?
Big Bird is back.
Is that all you have is to tell T to go down there and clean up?
You don't have any defense of the boys? Loser.
Victim T - Us that know you, really thought that you may be recovering from your trauma of being victimized, apparently we were wrong. Rumor mill has it, you actually may need some professional help. Beware what you tell you supposed close friends.
Well, there you go. If victim T needs help that must mean Jon and Tom were right all along. Some one needs to call the city of Minneapolis and the FBI and let them know about this. I'll bet they have no idea they are wasting their time on A and hole.
I'm going out you. I'm going to tell of your problems. Come on Wadkins you puss. Where are you? Where's your fat ass friend?
What charges...looks like they got charged with mail fraud to me. Sounds like from the star & trib article that they are going to plea bargain.
BTW...whoever you are that is claiming that I/we need professional help. It looks your friends/boyfriends/lover/husbands are the ones that are going to need assistance. We laugh everytime you come up with that one....it is getting a little old. When someone has no defense and is personally frustrated with their situation, they always just come up with baseless personal attacks. You are a joke.
Do you think they all turned on each other?? Do you think they are taking a plea because they are innocent or their families could not longer handle the public humiliation?
Victim T - You crack me up, we are neither, a girlfriend, friend, lover or wife.... you are just pissed that your friends are telling others that you are a nut bag! We all sit and laugh at you, so at least we are all laughing together... Hope you have another sleepless night. Nut job!
Sorry Victim whats her face - Are you for real? I was sent to this site by a friend after reading John Hoffs site. I am going to quote you: " dosen't mean that they do not care about their homes and community." Wake up lady! Have you lived in that community in the last 10 years? Is it because they care so much, that they are stealing electricty from any house they can, to the point that they are exploding, because they are cutting gas lines. You really need to know what you are talking about, before you run your mouth. I highly suggest you go to John Hoffs site, and see how he is putting his life in danger. I am in no way defending TJ Waconia, but you must realize that North has been in shambles for many many years. Please do your research.
(It's about time for a new string... but I'll keep the spirit of this one going!)
--- o ---
OK folks... it may not seem like a "lot" but it's the first crack before the dam breaks:
By STEVE BRANDT, Star Tribune
Last update: April 11, 2008 - 11:28 PM
A Roseville firm involved in hundreds of real estate deals in the Twin Cities area was charged Friday with a single count of mail fraud resulting from a federal mortgage fraud investigation.
The charge suggests that a plea deal may have been reached and that federal attorneys may be looking at charges higher up the lending chain, according to those who have prosecuted white-collar crime.
The U.S. attorney's office filed the one-page charge against appraiser Thomas J. Balko, 37, of Rogers; Jonathan E. Helgason, 45, of Chisago City; and TJ Waconia, the company they formed in 2000.
They could not be reached Friday night.
"Its sounds minimalist," said City Council Member Don Samuels. He has compared the damage he said the company did in at least 140 deals in his and other North Side Minneapolis neighborhoods to the damage caused by drug dealers.
But a former assistant federal prosecutor, Mark Larsen, said filing the charge without an indictment strongly suggests a plea deal. Such deals often require testimony against others involved in a criminal activity, described in this case as a three-year mortgage fraud scheme.
"It could be a little cascading effect here," said former U.S. Attorney B. Todd Jones, whose tenure was marked by numerous mortgage fraud prosecutions. Larsen said that one potential target could be those who supplied the money.
"People who run mortgage companies are often in a position to give information about banks or other financial institutions that actually provide the money to make the deals close," Larsen said. He said a deal would be "consistent with the notion that people who run mortgage brokerages know that there are bigger fish to catch and the U.S. attorney is apparently trying to catch them." That could reach higher in the lending chain than previous local mortgage fraud cases, he said.
Some are waiting to see if that's the case. "We are hoping that this turns out to be significant," said Roberta Englund, staff director for a Folwell neighborhood group in Minneapolis that first dug out a pattern of suspicious transactions by the firm.
Samuels hopes so too: "I would hope to hear something reassuring in the very near future. Given the scope and scale of the transactions, it's hard for me with just this information to feel comfortable."
A lawsuit filed by the city of Minneapolis and others last week against TJ Waconia and its owners alleged that they repeatedly obtained mortgages from SunTrust Mortgage.
The federal charge contains no such detail, but a search warrant affidavit filed in November states that TJ Waconia and its owners defrauded property investors and lenders who held mortgages on their properties.
The affidavit indicates that the firm bought numerous homes out of foreclosures and resold them to investors at significant markups. It suggested that those deals created a likelihood that fraudulent documents were submitted to lenders. The city lawsuit alleges that the deals drove up prices in north Minneapolis, which then collapsed after the firm cashed in.
Steve Brandt • 612-673-4438
North Side is not just in trouble because of what's there...but what's NOT there. Specifically, people who tell these wide-eyed stories about the North Side without *being* there.
Yeah, they were stealing electricity from my building. But that's not EVERY building. Is it "putting (my) life in danger" to be merely there, and to call the authorities like I'm supposed to? To "adopt" houses on my block as the City of Minneapolis has asked?
I've heard of old ladies getting killed on the North Side for being vulnerable and alone. But I haven't heard of anybody being assassinated for calling 911.
If I tell a story about North Side, it's because I'm THERE. But you can't read a story about copper theft and gas lines and act like...oh, good heavens, all the houses will explode.
It's rough, but keep it real. Furthermore, like I keep emphasizing on my blog...there are so many empty houses that decent people can move into a block and transform that block into anything they want it to be.
You know what Balko should do? He---
Oh, wait. I'm going to put it on my blog. Not right this minute, but eventually. Watch for it on JOHNNY NORTHSIDE DOT COM!!!!
Apparently one hand does not communicate with the other.
Which is it?
From the StarTribune - 4/11/08
"The affidavit indicates that the firm bought numerous homes out of foreclosures and resold them to investors at significant markups."
4-2-2008 Pioneer Press
"Community leaders accused Balko and Helgason of targeting decent homes, not broken-down ones. Many of the owners were elderly and willingly sold their homes to them, they said"
_______________________
I'll sit back and wait for all the know-it-all's on here to explain this.
And for those who may wonder what the point is... This is a contradiction. Both claim as fact.
Come on people, give the big T her recognition that she is looking for, what a savior she is.
Sure got quiet in here after the question was asked two posts ago.
Gosh, you're right bumblefuck. That argument makes them innocent.
"Anonymous said...
Gosh, you're right bumblefuck. That argument makes them innocent."
Witty!
Do you know how to keep an idiot in suspense?
Leave "bumblef*ck" alone! He's knows Balky and Helgy are going to beat this little "setback" and reclaim their past glory... right?
All you "know it alls" leave him ALONE! (And don't point out how both sets of "facts" are, well, possible!)
LEAVE HIM ALONE!
TIME WILL TELL, TIME WILL TELL.
How does one practice real estate with a fraud conviction? Oh, you can't. Taco, Taco, Taco Bell. Tom can I have cinnamon crispers with my meal. And don't forget you can always be a paper boy on the side again.
WE WILL SEE, WE WILL SEE. Is T Wojo, the only one on this site?
As far as the two articles being different, gee two different reporters perspectives maybe?
They did both targeting of decent homes and foreclosed homes.
Life can be extremely difficult with a felony conviction. Name a company besides Petes Lawn Service that no longer does background checks. They won't even be able to clean toilets after the Vikings games.
How about Minnesota Unlimited?
Oh wait, that company is not really a company.
How about Pritchards Auto Sales?
Thats the ticket!
I've always tried to be a voice of moderation and information. So I'll try to be that now.
I think it is possible for somebody who has done bad stuff to make a sincere effort to redeem themselves. I'll get around to saying what I think Balko and Helgeson should do...
Besides doing THEIR TIME, I mean.
It is a good day to learn of all that property falling into the hands of Minneapolis. I hope Minneapolis hunts down all the mortgage fraudsters on the North Side, gets its hands on that property, and turns the North Side around. The TJ Waconia properties are a fine start.
Hey everyone who ever defended the two asswipes in this or any other string: they're guilty! (No, seriously... they have been found guilty!) Ha!
Oh! Hunting northside (or "any" locale) fraudsters? Someone should check out Wendy Sullivan... (try the "Sherrif's Foreclosure" site!)
http://www4.co.hennepin.mn.us/webforeclosure/
Another foreclosure superstar (team) to look at:
Sunday O Olateju, Oluyemisi Olateju
If they seem familiar: they have ties to the address that's at 416 30th Ave N, Minneapolis... which (and I may be wrong here) was a TJ Waconia property...
The above fraudsters are just as bad as Tom and Jon - would be nice to see their feet put to the fire!
Oh, don't be telling me 416 30th was a TJ Waconia property or those guys have links unless you have some kind of proof. Now you're sending me off on a serious digging foray!
Anybody who reads my "johnny northside dot com" blog knows how much trouble that house has been at 416 30th ave. n!
I looked into the sales history. I don't see any name linked to T.J. Waconia. If there's a link, be more specific. You had me all excited for nothing.
You know that house is the "problem child" of my block. HA!!! Trick or treat.
Johnny - seriously - you are believing all on this blog ?? You recently requested info on the inaccuracy reported re: "the city's win" regarding the properties of TJ Waconia. "Grossly inaccurate" again seems to be the circumstance after review. Information contained within just appears to be adolescent banter at best. Stop chasing your tail, and continue your quest with what may make a difference.
"How does one practice real estate with a fraud conviction? Oh, you can't. Taco, Taco, Taco Bell. Tom can I have cinnamon crispers with my meal. And don't forget you can always be a paper boy on the side again."
OH HOW WITTY TERRY?! Taco Taco Taco Bell didn't seem to bother you when you were begging for acceptance from Balko and Company in High School. Please let me be cool, I so want to be in the in crowd....joke.
Hey get this....
The "women basher" with his issues has been attacking Tom because he worked at Taco Bell in HIGH SCHOOL.... Sure is amusing, as I hope everyone else will, that TERRY used to work at WHITE CASTLE!!!
All I can say is....BWAHAHAHA
HAHAHHAHHAHA White Castle, in the realm of fast food, the lowest rung, well below TACO TACO BELL.
TW - Owned
OMG, who cares where anyone worked when they were teenagers, hell now days, most teenagers don't work. This dumb as# Terry character needs to get a life. Hey Terry I want to know, I have read a couple times on here that you use to profit from working with T&J, is this true?
A former high school mate.
What is happening to Bob Rick the owner of Investors Warehouse? google bob rick investors warehouse and you can see his name as owner http://www.mnrealestateshow.com/Vendors/BobRick.htm
This is what the link states
Interesting -why hasn't this been mentioned before?
Minnesota Real Estate Show Preferred Partners
Investment Property
Robert Rick
Investors Warehouse
612-805-5773
bob@investorswarehouse.net
www.investorswarehouse.net
Investment Property Expert!
Robert Rick Professional Biography
Updated: July 2006
Robert (Bob) Rick began his professional career as an engineer in the printing/converting industry for over fifteen years, and then later turned to the sales side of that business for another eight years.
In 2002, Bob decided that Real Estate was the direction in which his career was headed. He began doing land and lot acquisitions with local area developers, as well as residential real estate sales. When investment properties became his main focus, Bob began working with builders and developers to get inventory from them in pre and new-construction developments to sell to investors at a discount.
In 2005, Bob joined as a partner with a company known as Investor’s Warehouse. Investor’s Warehouse is a wholesaler of investment properties that works to help real estate investors at any level become successful at buying properties of all kinds.
Bob’s role with Investor’s Warehouse involves selling to buyers’ reps and investors while seeking out new inventory opportunities. He also focuses on locating new distribution channels for the company. His vision with his role at Investor’s Warehouse is to help establish a world-class real estate company that engages the “every man” as an investor, and helps those investors enter and exit different properties with maximum ease and minimized risk.
Bob enjoys the dynamic, fast-paced environment that his company and industry offer to him. He enjoys working on constant new opportunities and working in a multi-faceted capacity within the company.
On the lighter side, Bob enjoys such activities as: Being with family and friends, soccer, hockey, bird watching, reading, rollerblading, hiking, ice fishing, and many other recreational activities. Bob is the proud father of three children, and has one grandson.
If anybody cares, for the record, when I was a teenager I worked at Godfather's Pizza.
Clearly, several cuts above Taco Bell or White Castle.
Post a Comment