Continuity mistake: When Jake grabs Chucky from under the bed, right after his dad destroys his sculpture, in the high-angle wide shot, there appears to be a piece of debris from the statue about a foot away from Chucky, but it disappears when the scene cuts to a close-up of Jake grabbing Chucky.
Continuity mistake: When Lucas destroys Jake's statue, in the wide shots, the baseball bat on the floor is nowhere near a doll head. But in the closeup, it's right next to a doll's head.
Continuity mistake: When Lucas destroys Jake's statue, there's a high-angle shot where he throws the baseball bat onto the floor. A few shots pass and we see another high-angle shot and the debris on the floor is slightly different. (Likely from two different takes of him destroying the statue and throwing the bat down.)
Continuity mistake: When Logan is asking Lucas about "how's business?", Bree goes from holding her fork to not holding it instantly between cuts.
Other mistake: When we see the close-up of the newspaper headline that says "Ray Parents Slain" at the start of the episode, look at the smaller articles on the close-up side of the screen—they're literally gibberish.
Continuity mistake: When Jake walks away at the beginning of the episode and the homeowner notices the butcher knife is gone, the way she has her hands resting on the moneybox changes between cuts.
Continuity mistake: When Jake buys Chucky at the beginning of the episode, as it cuts back and forth between Jake's angle and the homeowner's angle, the way Jake is holding Chucky changes a few times. (Ex. In some shots, Jake is holding Chucky a few feet in front of him, in others he's holding Chucky right next to his chest, etc.)
Answer: They were blamed for the death of Jake's foster brother, which was deemed a terrible accident, and they were sent to the reform school as a punishment. Presumably, when they had to leave the reform school given what happened, they were instead given community service as punishment.
TedStixon