Robust evidence was found that returning parolees in a neighborhood increased the crime rate; more violent parolees were found to have a particularly strong effect on murder and burglary rates. The results also showed that the social capital of the neighborhood could moderate the effect of parolees on crime rates. The results provide important insights into a prominent social issue, as well as possible directions for policy reform and interventions. Research argues that returning parolees may increase crime in the neighborhoods in which they return. Using a unique dataset that combined information on parolees in the city of Sacramento, CA, from 2003-2006, with information on monthly crime rates in Sacramento census tracts during this same time period provided a fine-grained temporal and geographical view of the relationship between the change in parolees in a census tract and the change in the crime rate. Tables, references, and appendix