Sentencing in Twin Cities Fraud

April 17, 2009


Two men were sentenced to years in federal prison for their roles in one of the largest mortgage fraud schemes Minnesota has ever seen.

A judge told Jonathan Helgason and Thomas Balko that they knew what they were doing couldn't be done without lying about it, as she sentenced them to eight and seven years respectively. The pair ran the scheme for three years utilizing 162 properties.

Prosecutors said Helgason and Balko bought and resold houses, at fraudulently inflated prices, to investors in north Minneapolis. Helgason was given an extra year because he held a state real estate license, putting him in a position of public trust, the judge said.

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