Restitution Ordered in Minnesota Mortgage Fraud Case

11 Aug

It was reported today by the Minneapolis Star Tribune that Jonathan Helgason and Thomas Balko, former owners of a now-inactive corporation known as TJ Waconia, Inc., were ordered this morning to pay restitution of $11.7 million following their guilty pleas in a fraud scheme which the government says involved $35 million in mortgages.  The two men allegedly bear much of the blame for the large number of foreclosures in north Minneapolis.

Restitution is the obligation of a criminal defendant convicted of a crime to pay money to the person or persons financially harmed by the alleged crime.  The men are obligated to pay this money in addition to their prison terms.

Entry by Matt Drewes.  Matt is a shareholder at Thomsen & Nybeck, P.A. and head of the firm’s Community Association Representation Group and Co-chairs the firm’s Construction Defect Litigation Group.  He practices primarily in the areas of real estate litigation, townhome and condominium law, construction litigation, debtor/creditor law, insurance litigation and employment law.


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