No consequence befalls the kids for ripping up a man's clothes. Not even a dirty look.
Because Stymie (6.25-years-old in real life) is under older brother Farina's care without any adult supervision, an agent comes to whisk Stymie away to an orphanage. Farina is a child too (10.625-years-old in real life at the time of the film's release), but no one comes to take him.