Can one use profits from a haram transaction to help the needy?

I am really sorry for asking a lenghty question. I just thought that for you to answer the question properly you must understand the whole situation. So I request that you be patient and read thoroughly, please.

My hometown is filled with poor, ignorant and disobedient Muslims. There are beggars and starving refugees everywhere. Several kids wonder about in the same dirty clothes every day with nowhere to sleep and no one to take care of them – not even the government. The many madmen and women are neglected and have to pick their food from piles of garbage like dogs. Many teenagers and widows have turned to prostitution just to survive. A lot of boys have turned to weeds, gambling, political thugs, and other vices. The saddest part is most of them are Muslims.

All this is happening while there are multi-millionaire Muslims and a couple of local scholars around. But these rich Muslims are only concerned with increasing their wealth and enjoying the life. Once I referred this matter to some of them they looked upon me like a beggar. And the poverty-stricken scholars are too busy with their family’s survival to concentrate on teaching the Ummah. Scholars have been neglected.

This situation is what prompted me to do what I have decided to do now. But before taking this course of action I need to clarify some doubts. I hope this online fatwa community will be able to help answer these questions Insha Allah.

I have for several years searched for a way to help the situation. I had dedicated my whole life to this cause long ago, but I am handicapped by two things: knowledge and money. I have talked to many about this but most don’t believe that the situation can be remedied – those who believed only wished me luck and did nothing to help. I have since been looking for ways to start up a business that will support the mission of starting madrassas, consolidating the town’s scholars on some salaries, and providing feeding, clothing, medical support, and shelter for as much people as the business can support at the madrassas. So far I have not been successful – largely due to a lack of funds.

A couple of days ago I found what could be a financial solution. I discovered that many young men in the town were getting rich by buying stolen goods on the internet at dirt-cheap prices and selling it at the local markets. A majority of them use this wealth to chase women, buy expensive gadgets and live lavish lives. I managed to find out how they did this.

I intend to go into this business full-time, at least for the moment. These goods are bought with stolen money from around the world and sold on the internet. It is almost impossible to return the money to their real owners. Those who buy it make personal use of it. I intend to redeem as much of this wealth as possible to invest in a business solely to benefit the Muslim community, not for myself. I don’t need a dime from it. The business is risky, but I am prepared to take the risk on behalf of my community. It is on this issue that I want clarification. My questions are as follows:

1. Is it permissible for me to go into this business having this clear intention?
2. If yes, will Allah reward me for my efforts in using all of it to educate the Muslims?
3. Can I deduct from this wealth the expenses I made to acquire and sell it?
4. Can I borrow from this wealth or the business to pay back later?
5. Can I pay myself or others wages for managing the business since it is not my possession?
6. Is it ethical to seek the help of Allah to pay off debts for me if I am unable to do so till death?
7. Finally, before buying these goods I intend to request the contact detail of the person this seller stole from. I doubt if they will give me the contact info. Most likely they will refuse outright or tell lies or even refuse to deal completely.  Can I ask for compensation from the real owners in case I get the contact information and able to reach them? Like the money I spent on buying it and some compensation like transportation, handling and taking the risk of getting scammed. Generally my first step will be to try can contact the victim of theft. Only when I cannot contact or I am suspicious of them will I use the wealth solely for the general public.

I am sorry that my question is so long. But this is really bothering me. Time continues to fly and I see people die in ignorance and sin (myself included). What could be a greater calamity than this? I believe the effort of a single dedicated Muslim or group of Muslims can change this situation for the better with the help of Allah. If I start, others will follow Insha Allah. Instead of allowing this wealth get wasted by criminals, redeeming part of it and using it for the general good of the Muslims will be best – in my view. I could be wrong though. So I refer the matter to my learned brothers.