Tuesday, December 27, 2011

Bank Foreclosure Fraud - The Very Worst Assault EVER & Its Significance to EVERY American Citizen

This excerpt addresses the "Significance of The Worst Bank Foreclosure Fraud in U.S. History" and  comes from the Jan. 29, 2010 Notice, which was addressed to senior government officials of North Carolina and the Federal government on a mortgage that was:
  • ALWAYS paid before the monthly due date
  • NEVER delinquent
  • NEVER in default
  • And on the day of eviction PAID-IN-FULL !!
#    #    #    #    #

This pertains to the 31-Count Indictment Filed Against . . .
whose actions were carried out at the behest of . . .

. . . to cover-up the FRESCA crimes of MorganStanleyGate 

#    #    #    #    # 

The Assault is premised on criminal fraud comprised of TWENTY separate elements of FRAUD executed throughout 2009, resulting in what is perhaps . . .
. . . the most brazen and malicious commercial mortgage FRAUD
ever perpetrated by a bank.
In what way? 
Paragon foreclosed uncontested
on mortgage loans that were
 never delinquent . . .
How is this significant?
  If banks in the U.S. could do so
 without consequence,
no one would borrow,
the economy would collapse,
 and so would the United States of America.
Ergo, as public servants in the leadership roles you each fulfill . . .
. . . You Simply MUST Get Involved,
especially when considering the
themes that pervade this 31-count indictment

Note:  The word FRAUD is fully capitalized – to highlight the sociopathic “I don’t give a @#$%!” nature of the Perpetrators’ unlawful acts.  And when you realize the extent and audacity in which these transgressions were carried this out, you will no doubt cultivate a sense of deep outrage.

Bank Foreclosure Fraud - The Primary Perpetrators of the Worst One in US History

This was the Perpetrators section of the January 29, 2010 notice sent to Senior NC Government Officials and Federal Officials seeking their assistance in averting the last, most devastating and potentially deadly phase of The Worst Bank Foreclosure Fraud in US History on a mortgage that was:
  • ALWAYS paid before the monthly due date
  • NEVER delinquent
  • NEVER in default
  • And on the day of eviction PAID-IN-FULL !!
Note:  Certain locutions in this section were inspired by the trademark comedic diatribes of Dennis Miller, for if the impact of these criminal acts weren’t so serious and devastating, the absurdity of their actions would otherwise be hilarious. 
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Note:  The links to the below noted exhibits are pending and will be incorporated soon.

Bob Hatley
The criminal activities involved in what was the pièce de résistance of The Worst Bank Foreclosure Fraud in US History in that it was blatantly fraudulent, patently illegal and made a mockery of the U.S. Declaration of Independence, the US Constitution and specifically the Bill of Rights.  The malicious acts were directed by:  Robert C. (“Bob”) Hatley, CEO of Paragon Commercial Bank at the behest of Morgan Stanley, as part of the cover-up effort for the MorganStanleyGate scandal.

. . . and principally executed by:
  • James W. (“Jim”) Hoose, Jr., a Sr.Vice Pres., and Credit Admin. at Paragon Commercial Bank;
  • Daniel G. (“Dan”) Cahill, a Partner of Poyner & Spruill; and
  • David M. Warren, a Partner of Poyner & Spruill

. . . with support provided by (at the very least ):
  • Matthew C. (“Matt”) Davis, Chief Credit Officer of Paragon Commercial Bank; and
  • Martin Borden, Sr.Vice Pres. & Head of Real Estate Lending at Paragon Commercial Bank

Borden                Cahill                   Davis              Hoose                   Warren
As you will discern from the details of this indictment, and the accompanying evidence, Bob Hatley’s behavior matches up well with that of a megalomaniacal bully, whose disturbing directives have been principally executed by an assistant best described as a toadying homunculus (that being Jim Hoose), along with Dan Cahill and David Warren, arguably the “Charles Ng and Leonard Lake” among attorneys in North Carolina.  But these are just my opinions – I could be wrong.

Also complicit in this criminal fraud are: Matt Davis, who committed perjury on behalf of Paragon Commercial Bank in its official response to the complaints filed with the FDIC and the North Carolina Banking Commission (evidenced in Exhibit IV ); and Martin Borden, who for many years served as my day-to-day relationship Banker and trusted advisor, and whose betrayal of trust would make Judas Iscariot proud. (Refer to Exhibit V for why I draw this parallel).

The collective actions of this iniquitous group reveal themselves to be deceitful, unethical, esurient and seemingly devoid of a conscience or sense of humanity – in short, they are AS EVIL, AS EVIL CAN BE. 

And this heartless crew will continue to bully others, only to become more brazen over time . . . that is, until someone decides to fight back . . . and that someone should be ALL of us . . . collectively and with vigor.  It’s time we put these bullying mavens of minacity on the other side of the table and ask: “Have you ever been this long overdue for an opening of a can of whoop-ass, as you are right now?” 

More about these evildoers can be found in Exhibit VI, along with photomontages and background information on many of the innocent people victimized by these monsters, further accentuating this as a clear-cut case of GOOD versus EVIL – and as described herein, their premeditated malevolent acts constitute an “Assault”.

Bank Foreclosure Fraud - Exhibit II - Evidence of Spencer C. Young’s Good Faith & Strong Business Acumen And Paragon's Sudden Bad Faith

The table below reflects just a few of the actions undertaken by Spencer C. Young to create substantial value at the Subject Collateral Properties; however, Paragon undermined all such efforts, evidencing an agenda intentionally detrimental to Mr. Young interests.
In reviewing this table, bear in mind the following:
  • Mr. Young had a strong banking relationship with Paragon for the prior four years, and all loans were performing, never in default and always paid prior to their monthly payment date
  • Mr.Young had closed, or was otherwise responsible for over $30 Billion in commercial real estate related transactions over his career, which in aggregate was a larger experience base than ALL Paragon lending officers COMBINED
  • Mr. Young is considered an expert in commercial mortgage backed securities ("CMBS") and related capital markets lending and is credited with developing the industry's initial lending and capital markets pricing standards through the JPMorgan Black Box, which he personally wrote the computer code for
  • Mr. Young founded the CMBS business at JPMorgan, built Morgan Stanley's CMBS conduit into a market leader (#1 in CMBS underwriting for 3 consecutive years), and created the highly successful proprietary CMBS franchise (the "IQ® Institutional Quality" brand).  These franchises today are worth $ Billions.
  • Since Mr. Young effectively wrote the book on commercial real estate lending, was intimately familiar with Paragon's lending parameters, he would typically sketch out the loan size and terms, which his personal banker and Paragon's head of real estate lending would always sign off on.  And so much mutual trust was built between the two that terms of financing were agreed upon up front based on a handshake, and memorialized with no changes at closing.
  • Notwithstanding the aforementioned, Mr. Young was deliberately set up in a financing ruse, as noted below 

Instances of Mr. Young’s Good Faith & Business Acumen
Reference / Response
Recruited Top Flight Tenants at Substantially Higher Rents  -- For example,  Bonne Soiree was selected as Restaurant of the Year in the Triangle (per News & Observer food critic), and one of the 10 best small restaurants in the U.S. (per Bonne Appetit)
 Click here for some of the magazine and newspaper restaurant reviews of Bonne Soiree
Candor & Transparency – Mr. Young openly and candidly shared information concerning of key matters and events (business and personal) with Martin Borden, his relationship banker at Paragon since 2004 – including the twists and turns of his pending divorce, and settlement negotiations.   He even provided Mr. Borden with a complete copy of the executed Divorce Settlement Agreement (“DSA”), going so far as highlighting the key provisions in this document, as well as provide him with a 3 page summary. 
Martin Borden had been involved in and was kept apprised of the DSA, and signed off on the final provisions before Mr. Young entered into the DSA.  In failing to provide the previously agreed-upon financing caused Mr. Young to immediately default of the DSA provisions.  This was deliberate, and intended to create divisiveness within the family. Click Here   for details evidencing Paragon’s involvement.
Sound & Conservative Deal Structure for Recapitalization – Mr. Young developed a Cross-Collateralized Recapitalization Structure for all five of his NC properties, which Mr. Borden (“MB”) verbally agreed to, as he had done with all four of the completed financings. In fact, their relationship had developed to the point of Mr. Borden providing Paragon’s then current underwriting parameters and financing terms to Mr. Young, so he could structure each loan, which Paragon ALWAYS concurred with.
Paragon abruptly reneged on terms it had previously agreed to – no reason specified – Click Here for details that would comfortably support the recapitalization structure on an earn-out basis based on Paragon’s lending parameters and leasing rates based on the most recently executed leases.
Acquired Land Parcels to Resolve Parking Impasse – Mr. Young completed the acquisition of two adjacent land parcels to be used for valet parking at The Courtyard of Chapel Hill, which was to be a two part financing, and permanently resolved a   issue that was a substantial drag on the fair market value of the property. 
Paragon financed Phase I (Acquisition), but abruptly reneged without warning on  Phase II (Build-out) – Click Here for details on Project Lemonade.

Made Liquidity Arrangements Well In Advance of Need
Worked out terms of a full-recourse $500,000 Credit Facility with MB.
Paragon reneged in May 2008 on short term financing arrangements agreed to in October 2007 – no reason specified (Click here for relevant correspondence).
Responded in Good Faith to Paragon’s Delays & Changing Feedback  – Mr. Young put up investment assets equal to $332,000 at the time in order to establish a fully-collateralized Credit Facility for this amount.  When Paragon reneged, Mr. Young proposed terms for an over-collateralized Credit Facility of $250,000 with Mr. Borden, who indicated such a sound credit structure would probably work, but once again Paragon dragged their feet on a decision and issued a terse response that was scripted and delivered in a “corporate-speak” manner as:  Based upon our credit evaluation, Paragon has no interest in extending additional credit to you, or your entities”.
Paragon reneged – no reason specified.  Paragon had deliberately strung Mr. Young along for 3 months, until Wachovia had sufficient time to accelerate their $2.6 million loan on The Courtyard of Chapel Hill.  This was deliberate and coordinated between these two banks with close organization ties (e.g., most Paragon executives had a prior career at Wachovia).  (Click here for correspondence just before Paragon officially reneged.)

Others Mysteriously Contacted Via Computer Connection Traced To SAME Farm House in Potwin, KS

On three consecutive days of November 25-27, 2009 (Thanksgiving Day, and the days before and after),  disturbing e-mails were sent by an anonymous person from a farm house in Potwin, KS to Spencer C. Young, his mother (Edna May Young), sister (Denise Vallarino) and fiancee' (Leah Krier). Click here for details.

Reflected below are instances of THREE other people who have received strange anonymous emails or were otherwise hacked from an AOL email account that originates from the same farmhouse in rural Kansas.  

Those with information are asked to contact me via email at SpencerCYoung@aol.com.  Clarifying Note: The address 8689 County Road 576 is also known as 8653 NW 120th St and all geomaps point to the same real estate parcelt

Instance # 1:
From: George       <>
Date: Sat, 3 Dec 2011 15:30:08 -0800 (PST)
ReplyTo: George                  
Subject: 8653 NW 120th St Potwin KS 67123-9630 The mystery continues.

I received an e-mail yesterday 2 Dec. 2011, regarding someone who will not ID themselves. The email details information that only a close member of my immediate family, would know.

I spent today exploring where the email came from and it seems to have originated at the above address. In the process I discovered your morganstanleygate blog. I saw, but can't relocate some information on some strange land dealings and emails having to do with the above address. I am trying to locate the owner of the e-mail address (course101@aol.com) all my searches on the IP  return this address as the owners address.

Something funny is going on here. The name Thelma Hinnen Vogelman, Andy Nellans, James Arnold, keep coming up in my search. I even found Vogelman in a list of landowners informed about the Keystone pipeline project. Vogelman died in 1998.
Anything you could add to the search would be appreciated. I have other bits if you have any interest.

Just ask and I'll supply a phone number.


#    #     #
Instance # 2:

Instance # 3:

Date: Tue, 10 May 2011 13:05:27 -0700 [05/10/2011 04:05:27 PM EST]
From: Jaime                    
To: responses@scyinv.com
Subject: Re: farmhouse in Kansas
Part(s): Download All Attachments (in .zip file) Download All Attachments (in .zip file)
Headers: Show All Headers

Alternative parts for this section:  Help
 unnamed [text/html] 1.67 KB Download 
susie1963@yahoo.com  is the email address they used. I am in Texas.

From: "responses@scyinv.com" <responses@scyinv.com>
To: Jaime  Sent: Tue, May 10, 2011 2:00:00 PM
Subject: Re: farmhouse in Kansas

What was the email address this person used, and where are you located? Thx 

From: Jaime              
Date: Tue, 10 May 2011 10:00:58 -0700 (PDT)
To: <Responses@SCYInv.com>
Subject: farmhouse in Kansas

I found your website after I got a really nasty email from an ip address that I 
tracked back to the exact same location you have listed on your website. The 
lady signed the email "Sue". 


Bank Foreclosure Fraud - Exhibit III - Evidence of Denial of Due Process

Reproduced below was Exhibit III - Evidence of Denial of Due Process  to the January 29, 2010 notice sent to Senior NC Government Officials and Federal Officials seeking their assistance in averting the last and potentially deadly phase of The Worst Bank Foreclosure Fraud in US History on a mortgage that was:
  • ALWAYS paid before the monthly due date
  • NEVER delinquent
  • NEVER in default
  • And on the day of eviction PAID-IN-FULL !!

Note:  This evidenced overwhelming corruption and complete denial of the constitutional right to legal due process.  And because Mr. Young was denied his right to legal representation, the fraudulent foreclosures proceeded UNCONTESTED !!

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Until recently, Spencer Young (“Young”) NEVER had difficulties engaging legal counsel on any matter, and had often been represented by some of the top law firms and attorneys in their fields and locale (e.g., Cadwalader / Dechert / Thacher Profitt / Hahn & Hessen, as creditor), and over a span of 22 years, his real state attorneys never resigned from an engagement.  Moreover, when he began investing in North Carolina, the top NC law firms actively sought his business, and he ended up engaging Womble Carlyle to acquire each of the income producing properties. 

And when Young needed to swiftly engage criminal defense counsel to protect his oldest son from indictment in the Duke Lacrosse Scandal, former NC Supreme Court Judge Burley Mitchell assisted him in finding and engaging Kyle Hall, who was the ONLY defense counsel representing a player entitled to present exculpatory evidence to then DA Mike Nifong BEFORE the grand jury indictments were handed down. 

With this background as context, peruse the table below, which summarizes Young’s recent efforts to engage local legal counsel at the time when Paragon began exhibiting a dichotomous change in their behavior.

Action Undertaken by Young
Engaged six different local law firms to represent his interests
Each one resigned for spurious reasons, and always on the eve of a deadline or critical event
Spoke to over 50 other local law firms in context of engaging them to represent his interests
None wished to represent Young; one mentioned a veiled threat circulating among local attorneys of unspecified dire consequences to anyone who agreed to represent him – another implied this was the case, referencing an “extraneous downside”.
Contacted North Carolina Bar Association’s Law Referral Service
None agreed to represent Young.  And the process was inefficient (one prospect/day)
Spoke directly with Luella Crane, the Director of Attorney/Client Assistance for the North Carolina State Bar
Young was astonished by Ms. Crane evasiveness – she and her staff offered only valueless non-sequiturs.
Bill Matthews of Womble Carlyle earlier offered to provide referral guidance whenever necessary, so he was contacted.
Although Bill had gladly done this in the past (e.g. Burley Mitchell), he recently refused to do so for unspecified reasons.
Kyle Hall was previously willing to help out with referrals, so I called him.
Kyle said he could not help Young out and quickly hung up the phone

Widespread Corruption and Denial of Due Process is obvious here.

Bank Foreclosure Fraud - Introduction - An Urgent Request For Help from North Carolina Government Officials

This was the introductory paragraph to the January 29, 2010 notice sent to Senior NC Government Officials and Federal Officials seeking their assistance in averting the last and potentially deadly phase of The Worst Bank Foreclosure Fraud in US History on a mortgage that was:
  • ALWAYS paid before the monthly due date
  • NEVER delinquent
  • NEVER in default
  • And on the day of eviction PAID-IN-FULL !!
#    #    #    #    #

I need your help . . . for without it there may be loss of life TODAY.  Hence, I hereby request your DIRECT and IMMEDIATE involvement to finally end an unrelenting string of criminal acts predicated on fraud principally carried out in Orange and Durham Counties, and engineered by representatives of a bank and law firm based in Wake County.  And by “involvement” I mean:
  • Reading this document in its entirety;
  • Concurring this is a matter warranting your attention;
  • Acknowledging the danger of allowing such crimes to continue unabated; and
  • Ordering investigations of the 20 elements of fraud and 31 counts detailed herein.

Importantly, this is only the “tip of the iceberg” to an even more significant matter crossing state lines involving two “bailout banks”, numerous attorneys and public officials – hence relevant U.S. Senate Committees and Federal Officials (listed in Exhibit I ) are also being alerted. 

In undertaking this extraordinary measure of soliciting your DIRECT and IMMEDIATE involvement, please know all conventional means of responding to these sinister acts have been exhausted on both the business level (described in Exhibit II), as well as the legal end (detailed in Exhibit III) – because in each case, such efforts were unlawfully trumped.  And only through official investigations YOU commission, will the full extent of corruption and lawlessness be revealed – and that which I have observed and experienced to date makes Chicago’s rampant depravity during the Prohibition era look like the inadvertent missteps of choir boys – and as you’ll see, the Perpetrators responsible for this are no choir boys.

Bank Foreclosure Fraud - Exhibit I - Federal Officials Who Were Alerted

This post is associated with alerting the requisite Government Officials of what is arguably The Worst Bank Foreclosure Fraud in US History. 

This particular post lists the Federal Officials who were separately provided extensive evidence on Jan. 29, 2010, just four days before the violent eviction by over a dozen SWAT Team deputy officers of the Orange County Sheriff on a mortgage that was:
  • ALWAYS paid before the monthly due date
  • NEVER delinquent
  • NEVER in default
  • And on the day of eviction PAID-IN-FULL !!
This should scare the hell out of EVERY American citizen because many of these officials were contacted many months prior seeking protection from this egregious crime instigated by Paragon Commercial Bank and the law firm of Poyner & Spruill that undermines the very foundation of inalienable, civil, constitutional and  property rights upon which this country was founded.

Importantly, this dastardly act was carried out at the behest of Morgan Stanley in order to cover-up the MorganStanleyGate scandal, and was intended to culminate in Spencer C. Young's assassination, which he only narrowly averted.

Reflected below are the Senate Committees and Federal Officials who are being concurrently apprised of this assault on core American Citizens’ rights – the result of yet another intolerable affront on the American public by the U.S. Banking industry,  made possible by rampant corruption among local judicial staff and an astonishing number of attorneys.
U.S. Senate Committee on Banking, Housing & Urban Affairs
(Phone: 202-224-7391 / Fax: 202-224-5137)

U.S. Senate Committee on Finance[1]
(Phone: 202-224-2651 / Fax: 202-224-9412)

U.S. Senate Committee on the Judiciary
(Phone: 202-224-3479 / Fax: 202-224-4242)

Federal Officials

Eric Holder – U.S. Attorney General
(Phone: 202-514-2000  Email: eric.holder@usdoj.gov)
Ben Bernanke – Head of the U.S. Federal Reserve
(Phone:  (202) 452-3000    Email ben.bernanke@federalreserve.gov

Tim Geithner – Secretary of the U.S. Treasury

(Phone:  (202) 622-2000    Fax: (202) 622-6415)

Sheila Bair – Chairman of the Federal Deposit Insurance Corporation
(Phone:  (877) 275-3342    Fax: (703) 812-1020)

Mary Schapiro – Head of the Securities & Exchange Commission
(Phone:  (202) 551-2100    Email: chairmanoffice@sec.gov

Robert Mueller –  Director of the Federal Bureau of Investigation
(Phone:  (202) 324-3000    Email: robert.mueller@ic.fbi.gov

Important note:  Most of the officials listed above have established bureaucracies effective at deflecting nonsensical ho-hum communications from the general public; however, they also end up frustrating and discouraging those who wish to alert them of legitimate issues that warrant their attention.  For example, the FDIC’s response to being alerted of this fraud could not have been more feckless and vapid, and although earlier requests were made to bring this to the attention of Sheila Bair, I received no indication this was ever done.
Robert Mueller and many other senior FBI officials have received dozens of communiqués evidencing a fraud of epic proportion was being perpetrated (where this indictment represents only the “tip of the iceberg”); however, the responses to date indicated Mr. Mueller has NEVER been advised of this – and the responses to date are best described as disturbing, nonresponsive and thoroughly disappointing.
And trying to alert Mr. Holder to the astonishing level of observed and painstakingly documented instances of corruption among judges and attorneys in the triangle region of North Carolina alone is a sure-fire exercise in futility.  I suggest you disguise your voice and call in yourself for a vexing run-around of a lifetime.  Although my IQ is measured to be in the top 1%, I don’t seem to be smart enough to figure this out – ergo, you NEED to change this.
Accordingly, an unorthodox and multifaceted approach has been undertaken to ensure you ALL know about this, and timely respond in a “YES WE CAN” manner.

[1] While the primary issues in this matter may viscerally appear  to be outside the purview of the Senate Finance Committee, the unlawful actions of Paragon Commercial Bank and Poyner & Spruill caused the loss of medical insurance coverage for Mr. Young’s entire family, hence reporting these misdeeds to this Committee is appropriate.