More Questions than Charges for TJ Waconia

by Alex Stenback on April 14, 2008

Finally, charges in the TJ Waconia Case, from the Star-Tribune:

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.

That’s it?  A single count?  For one of the poster children for mortgage fraud in the Twin Cities?

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.

Looks like we will see a plea agreement in the near future.  This also strongly indicates that TJ Waconia’s principals have been cooperating with the FBI and others in building a case against other involved parties. 

This seems to be how things work – remember Jill Lehn’s words:

Then, I got another visit from the FBI.

“Jill, we need to charge you now to go forward with the rest of our cases. You need to find a really good criminal defense attorney that specializes in money laundering and wire fraud.”

Real Estate Company Charged in Fraud Scheme [Strib]

{ 3 comments… read them below or add one }

Johnny Northside April 19, 2008 at 2:09 pm

There have been huge developments in the TJ Waconia case in the past few days. I’m using this comment area even though the story has continued to develop, because some public information needs SERIOUS CLARIFICATION based on what I’m hearing behind the scenes.

Look, WORD ON THE STREET is the information in the most recent Star Tribune article is grossly inaccurate. The properties are all REO bank-owned, according to what I’m hearing. These 140 or so properties DID NOT just fall into the hands of the city, and it may be politicians are trying to make hay from this, but I’m hearing the info is NOT ACCURATE and Minneapolis DID NOT just get its hands on 140 houses.

I can’t confirm this info, but I’m hearing it in a serious way. Does anybody else know? What is the true situation, here?

James April 21, 2008 at 7:42 pm

You are right. They are all showing up as REO’s. I am writing up offers on 2 of them right now.

Johnny Northside April 21, 2008 at 11:02 pm

Say more! Spill more details. The city didn’t get control of ONE HOUSE? Or did they win some right to manage, some right to redeem, ANYTHING?

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