By the time Dennis Helmer is eligible to get out of federal prison, many of his elderly victims likely will be dead.
A federal judge in Minneapolis on Tuesday sentenced the 54-year-old coin and bullion dealer from Farmington to more than 12 years behind bars and ordered him to pay $1.3 million in restitution.
"The dollar amount, I don't think will be an issue," Helmer said. "I have no assets now, but I do think I'll be able to do it."
U.S. District Judge David Doty said he hoped Helmer was right.
"I'm a bit skeptical about that," he added dryly. Then he sentenced Helmer to 150 months in prison, followed by 3 years of supervised release.
Helmer, who has three prior convictions for defrauding coin clients, preyed on mostly older, often sickly investors seeking a safe harbor from the stormy stock market. He built his businesses using a massive customer database that he took from other Twin Cities brokerages where he'd worked as a young man.
Helmer told the Star Tribune in 2012 that he had sold the list countless times to other precious metals brokers. Some turned out to be drug and alcohol abusers like himself who fleeced their clients. Versions of the customer list, which sold for $200 to $4,000, traded so widely that they came to be called the "DH leads," after Helmer's initials.
Tory Hughes, who ran Reputable Rare Coins in Roseville, relied on such leads to bilk more than $700,000 from his own clients and was sentenced last week by a federal judge in St. Paul to 71 months in prison. Several other former Twin Cities coin dealers also await sentencing in federal court.
Helmer told Doty on Tuesday that he takes responsibility for his crimes, but went on to blame others.
He praised his work ethic, saying that he's always worked at least two jobs. He said he fell into the precious metals business when he was recovering from an accident that kept him from working in construction.
The nationwide telemarketing of precious metals started in the Twin Cities in the 1970s. Helmer said he became a top broker at several large Twin Cities coin dealerships before launching his own companies.
Helmer said he gave clients good deals by keeping his overhead down and cutting his own commissions. He lamented his past dependence on drugs and alcohol, but blamed his employees for embezzling money from his firm's clients.
"A team is like a chain, it's only as strong as its weakest link," Helmer said. "I give up. I've failed," he added, sobbing. "I've hurt people."
Helmer collapsed into a chair, gasping for breath, but managed to regain his feet a few minutes later. He told Doty that he's done with the coin business and hopes to return to construction.
"I'm taking my life back so I can be proud of myself again," Helmer said.
Kimberly Svendsen, the federal prosecutor, asked Doty to sentence Helmer to 150 months, the top of the federal sentencing guidelines range. She said he deserved a lengthy sentence because he preyed on elderly people with infirmities such as blindness and dementia. Svendsen said Helmer called himself "Jeff Jones" and visited his clients in their homes to gain their trust, then simply helped himself to their money.
One victim, whom she identified as "J.J.," is a 62-year-old from Kentucky who lost $130,000. Svendsen said he has put off retirement and now expects to work to age 70 or 75. He wanted to be in court for Helmer's sentencing but couldn't afford to do so, she said.
Svendsen called Helmer "a predator" who made his living defrauding people for 15 years.
"Mr. Helmer was not in the coin business. He was in the stealing business," she said. "The defendant's remorse in this case rings hollow."
Dan Browning • 612-673-4493
