Monday, January 30, 2012

Resubmitted Tip to FBI on Identity Theft Ring Operating Out Of Rural Kansas Farm House

Figure 1.  Roadside Picture of Subject Farmhouse
In light of the FBI's prompt, but bizarre and unhelpful response to the tip submitted on Jan. 28, 2012 on the "identity theft ring" that has been run out of a rural farmhouse in Kansas (Figure 1) for at least the last two years, this tip was resubmitted today.  For context, this pertains to malicious threatening emails that were sent to Mr. Young's: (1) fiancee' (Leah Krier); mother (Edna May Young); and sister (Denise Vallarino), which are directly linked to the MorganStanleyGate scandal and prefaced the culmination of the Worst Bank Foreclosure Fraud in U.S. History.

Reflected below is the narrative included in the information section of the submitted tip, which is also pictured in Figure 2 below.



This is a follow-up to the tip submitted on Sat. Jan. 28, 2011 and the FBI's response by email on that day.  The FBI's response was so fraught with errors and inaccuracies I almost don't know where to begin, so I'll just refer you to the website address where this is posted, and which contains all the information necessary to begin an investigation.  The information requested is all accessible via clearly designated hyper-links.  HERE IS THE WEBSITE ADDRESS:   . . . and be sure to read ALL the postings on this website (i.e., scroll all the way down).

Figure 2.  FBI Tip Form Submitted & Confirmation of Receipt

Saturday, January 28, 2012

Your Governmental Law Enforcement Hard At Work . . . The FBI's Response

Reproduced below is the FBI's response to the tip submitted earlier today on the identity theft ring that's being run out of a farmhouse in rural Kanas, which is linked to the MorganStanleyGate scandal.  This is either a sad commentary on the existence of profound ineptitude or diabolical corruption, and here's why:

  • Introduction -- They begin by saying it's "NOT AN AUTOMATED RESPONSE"  -- Really?  Read on.
  • Additional Information -- They would like additional information and provide the website address to do so.  They ask that the "Tip #" be referenced when doing so -- They didn't provide a Reference # (trust me I looked all over to see if I had perhaps missed this -- I didn't)
  • Superfluous Request -- The additional information requested was already provided in painstaking detail suggesting the "Tip" was NOT read or this is just an AUTOMATED RESPONSE
  • Do Not Reply -- They report the FBI does not maintain an email address to submit information or attachments.  Why Not?  They go on to say: "We WILL NOT open or respond to "reply" email.  Why Not?
  • Now Put It All Together -- The FBI requested information that was already provided, and asked that it be sent via an on-line form that was already submitted, however, there is no way to send an attachment of additional information because they won't accept it nor read it, and after being asked to provide  information they already have, they said be sure to include the "Tip Reference #" that they never provided.  You just can't make this stuff up.
Is this process a mere ruse to only give the impression that the FBI will serve to protect and seek justice on behalf of U.S. citizens who have been victimized?  We shall see . . .

FBI To Investigate Identity Theft Ring Operated From Potwin, KS Farmhouse

The following "Tip" was filed by Spencer C. Young with the FBI for investigation of what appears to be an identity theft ring electronically run out of a farmhouse in rural Kansas and linked to the MorganStanleyGate scandal, as noted below

The narrative submitted was as follows:

This reports an identity theft ring operating from a farmhouse in Potwin, Kansas, that has impacted me (in North Carolina) and four other people (e.g., in Texas and Pennsylvania). My victimization entailed anonymous threatening emails evidencing stalking, as well as threats and vicious slandering remarks to my loved ones (e.g., fiancee’, mother, sister). Details can be accessed at:

Others impacted had contacted me on their own volition, indicating they had been subjected to similar affronts, and we learned of each other because our separate investigations traced back to the SAME farmhouse. Details from the latest person to contact me can be accessed at while particulars on the other three people who had earlier reached out to me are located at:

As these URLs reference public blog posts, the identities and contact information for 3 of the 4 people have been removed, however, I can provide this information to your field agents for investigation. You will note one person chose to remain anonymous; however, I understand the FBI has the technology to tract this person down, based on the email address used.

While I can’t speak to the motivations behind the victimization of the others, I can say with complete certainty that my attack was a form of retaliation for exposing a massive bank scandal involving fraud, racketeering, extortion, sabotage, corruption and contract killings, a summary of which is accessible at

Importantly, due to the magnitude of this scandal, this is being posted on-line and widely shared with the news media. I look forward to your prompt response.

Friday, January 27, 2012

Smear Campaign: The Mystery of the Kansas Farmhouse Continues

This entry pertains to an element of the extensive smear campaign Morgan Stanley implemented against Spencer C. Young in its efforts to cover-up the MorganStanleyGate scandal.  This particular element originated from a farmhouse in Potwin, Kansas.

Morgan Stanley's Dastardly Smear Campaign

As you may know, the smear campaign Morgan Stanley directed against Mr. Young has been multi-faceted and has spanned the nation north-to-south and east-to-west, featuring an astonishing level of viciousness and bombastic lies.

Listed below are the four separate smear campaigns, which are each hyper-linked to associated details:

Information Received

Information and tips are regularly received from those who read this blog, the preponderance of which are helpful, and their identities are protected.  In instances where revealing their identity would help corroborate the legitimacy of the information provided, permission is obtained before doing so.  

Notwithstanding, some received communiques have viscerally appeared well-intentioned, when in fact, they were not.  The motivations of the person who sent the email presented below are unclear, however, their own extensive precautionary steps to preserve anonymity were already taken, so it is reproduced below, along with an accompanying message, which most certainly is well-intentioned.

Dear "" :  Please forward "various addresses" from which you also received "malicious emails" that traced back to the same rural farmhouse in Potwin, Kansas, and they will be included in our investigations.  We WILL get answers.

Thursday, January 26, 2012

Victim # 6 in Potwin, KS Farmhouse Cyber-Attacks Comes Forward

Aerial View of Mysterious Kansas Farmhouse Serving As Hub For Cyber-Attacks

Numerous people have voluntarily contacted Spencer C. Young, indicating: (1) their social website or email account had been hacked; (2) their identity was stolen; (3) they were the victim of electronic harassment; or (4) were subjected to other forms of cyber-crimes . . . ALL of which emanated from the SAME IP (Internet Protocol) ADDRESS, which was then traced to the SAME PHYSICAL LOCATION of a rural farmhouse in Potwin, Kansas, which appears to have various addresses, such as:
  1. 8652 NW 120th St.,  Potwin, KS 67123
  2. 8653 NW 120th St.,  Potwin, KS 67123
  3. 8689 County Road 576, Potwin, KS  67123
  4. 8635 NW 120th St., Potwin, KS 67123  
The property is owned by Joyce M. Taylor, who in turn has made arrangements in advance to transfer title to this property jointly to Fred Whitmore and Mary Ann Mercado upon her passing.

Below is another instance of notification -- in fact, the SIXTH KNOWN VICTIM . . . and there are obviously MANY more.

-----Original Message-----

From: auto20144536 <>
To: spencercyoung <>
Sent: Fri, Jan 27, 2012 4:55 pm
Subject: Blog

Mr. Young,

I did request that you not publish the full text of my email, which you did, and that action has rippled back to the original person I was attempting to draw out (the person located at the IP address in Potwin).  He's now cut off contact with me, unfortunately, so it looks like that is a dead end.

I have no ill intentions, I just wanted to provide you with some new information.

The header of the last email I received reads, in part:
"Received: from ( [])

X-Originating-IP: []"

I am sure that first IP will link back to Potwin.  The second IP originates to somewhere in Washington state - hmm - perhaps there is just a relay or something in Potwin.  I'm not entirely sure.

Right now that is all the further information I'd like to share, as you've neglected to hold up your end of the implicit agreement in my first email.


-----Original Message-----
From: namelessperson <>
To: spencercyoung <>
Sent: Thu, Jan 26, 2012 10:09 pm
Subject: Potwin Farmhouse Email

Hello Mr. Young,

I do not want to be contacted or identified, thus the private email that will be disposed of once this email is sent.

I just wanted to let you know I was conducting my own investigation about malicious emails sent to me, and the IP address links back to the same location mentioned in your blog.  The emails I received were from an individual identifying as a pedophile or as an anti-pedophile vigilante, he hasn't seemed to settle on one story.

In his many various emails he has sent to me, he has claimed to be named Michael, claims to be an older married American male, claims to have lost two children (though sometimes he says as infants, other times as adults), claims to have attempted suicide at least once, and claims to currently be suffering from a drug addiction.  He runs a website called "The New Priory", which I unfortunately lost the link to.  

He has been sending emails from various addresses.  They sometimes run into hundreds of paragraphs - he is clearly mentally unstable.

I'd rather the full text of this email not be published on your site.  But I wanted to provide you with a little new light.  I am beginning to wonder if that farmhouse is merely a "switchboard" of sorts, as this is a lot of action for some podunk Kansas town.

Glad to be of help.  I hope this mystery gets solved.


Bank Foreclosure Fraud - The Exhibits Supporting the 31-Count Indictment of Paragon Bank Execs & Their Attorneys

Listed below are the Exhibits that accompanied the  Jan. 29, 2010 Notice sent to Senior officials for North Carolina and the Federal government on mortgages that were:
Each listed exhibits contains a hyper-link to damning evidence associated with . . .

The Last Phase of the Worst Bank Foreclosure Fraud in U.S. History was Executed by . . .

. . . At the behest of . . .

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

Bank Foreclosure Fraud - Exhibit V - Is This Banker's Betrayal Worthy of Capital Punishment?

The excerpt below is Exhibit V to the Jan. 29, 2010 Notice sent to Senior officials for North Carolina and the Federal government on mortgages that were:

The Big Picture

This instance of bank foreclosure fraud was carried out by Paragon Commercial Bank (with assistance provided by their attorneys, Poyner & Spruill) at the behest of Morgan Stanley (and their attorneys, Kirkland & Ellis) as a dastardly form of cover-up, so as to deprive Mr. Young of resources and undermine his professional and personal credibility, so he could not viably pursue his now massive claims in the MorganStanleyGate scandal.


Martin Borden
Paragon Commercial Bank 's foreclosure fraud began with an especially diabolical betrayal by Spencer C. Young's relationship banker, Martin Borden. Mr. Borden is a Senior Vice President and Head of Commercial Real Estate Lending at Paragon. 

Mr. Borden's experience in real estate lending was then, and continues to be dwarfed by Mr. Young's prodigious banking career experience, which includes $32 billion in commercial mortgage related transactions -- in fact, if you aggregated the transactions completed by every banker at Paragon throughout their careers, the sum total dollar amount of transactions would NOT come close to that done by  Mr. Young, considered one of the pioneers of the Commercial Mortgage Backed Securities ("CMBS") market.  

Confidant Turns Traitor

And because of Mr. Young's deep background in finance, banking and real estate, Mr. Borden typically provided Paragon's then current lending parameters and financing terms, and Mr. Young would underwrite, price and size the loan that Paragon would then make.  All the financings Paragon completed for Mr. Young (four financings totaling $5.1 million on properties valued at $20 million), were effectively predicated on a hand-shake and this mutually acceptable and successfully practiced arrangement.

Moreover, as his personal banker since 2004, Mr. Borden gained Mr. Young's trust as a confidant, and was part of his real estate investment advisory team -- little did he know Martin Borden would abuse that trust in a profound and pernicious manner, as described herein.

Devastating Betrayal

To provide context to how devastating Martin Borden's betrayal was, consider the following:  In the classic, Inferno, 14th Century Italian Philosopher, Dante Alighieri believed Treachery (violating one's trust) and Fraud (in this case 20 separate elements of fraud) are considered to be sins more reprehensible than Violence such as Murder (see Figure 1) . . . this being the case because such transgressions can be unimaginably painful to a large number of people (as was eventually the case), typically go unpunished and are often replicated throughout the lifetimes of the perpetrators.
Figure 1.  The layers of eternal suffering in Hell INCREASE as the Core is approached

The Strategic Plans at a Critical Juncture

During the last quarter of 2007, Mr. Young discussed his business strategies and personal plans at length with Martin Borden, as he had to contend with, or otherwise prepare for numerous seminal events, including:
  • Confronting a massive smear campaign in North Carolina
  • Finalizing an amicable divorce settlement with Maria Young, his wife of 24 years, so he could continue to provide well for her, as he always had.  [Note: He and Maria had been separated since 2005, a sad manifestation of the chronic stress of MorganStanleyGate.
  • The sale of his residence in Manhasset, and providing Maria with proceeds to enable her to purchase a smaller house as part of their divorce settlement
  • Preparing for the birth of his fourth child (carried by his fiancee', Leah Krier)
  • Addressing extensive commercial sabotage at his investment properties, including an unlawful parking lot blockade that violated a local ordinance, which the Town of Chapel Hill not only failed to enforce, but inexplicably prevented its resolution, thereby evidencing astonishing corruption
  • An audit exposed significant billing irregularities by his property manager, Hunter & Associates, and when confronted, Hunter abruptly resigned without explanation, suggesting financial sabotage
  • Ensuring the funding for his three older sons' to complete their college educations, and 
  • Prosecuting his claims in New York in the MorganStanleyGate scandal

Everything Hinged On The Planned Recapitalization . . .

He also discussed at length the recapitalization of his North Carolina investment properties, which would yield substantial value accretion, and provide the liquidity to pursue the investigation and prosecution of  the aforementioned  anomalies, which ALL suddenly began in a seemingly orchestrated fashion during the Summer of 2007 -- this was NOT a coincidence, but rather an instrumental part of the MorganStanleyGate cover-up.

The recapitalization was to be done in three sequential phases, the first two being immediate:

  1. Graham St. Parcels -- finance the acquisition of these adjacent parcels in Chapel Hill
  2. Line of Credit -- $500,000 (substantially collateralized by liquid investment assets) to cover short term liquidity needs including reconfiguring the parking lot at The Courtyard of Chapel Hill for valet parking; and 
  3. Earn-Out Provision -- As new leases are executed additional loan proceeds of up to $2.0 million and subject to conservative debt service coverage (1.5X @9.0% constant) and loan-to-value (<50%) parameters, would be made available to complete the redevelopment work in progress at The Pit Stop of Durham and The Courtyard of Chapel Hill.

. . . Which Was Structured To Be A "No-Brainer"

Anyone conversant in commercial real estate lending would agree that the Recapitalization terms outlined above were not only sound from a credit standpoint, it was a readily doable transaction, or a "No-Brainer" in commercial real estate lending parlance -- an assessment with which Martin Borden agreed because the contemplated financing was WELL WITHIN Paragon's lending parameters.

It is also relevant to point out Paragon was NOT impacted by the sub-prime mortgage banking crisis that later emerged because Paragon did NOT make residential mortgage loans.

The Intent & Effects of the Recapitalization

As structured and agreed to by Martin Borden, the Recapitalization would establish a strong fiscal foundation for the foreseeable future, thereby comfortably ensuring Mr. Young's ability to financially provide for all his loved ones, as he had long been doing, for some for more than two decades. His loved ones included: Maria; his mother (Edna May Young); his sons (Michael, Kevin & Ryan Young), who were all attending college; and his fiancee' (Leah Krier), who was pregnant, and due to give birth in April 2008.

Maria              Edna May               Kevin               Michael                Ryan                 Leah
Since the outset of their banking relationship, Mr. Young had waxed eloquent to Mr. Borden about the importance of establishing a strong fiscal foundation for his commercial real estate investments in North Carolina to enable him to pursue his mounting civil claims in the MorganStanleyGate scandal.

Paragon's Involvement in Divorce Settlement

When Mr. Young was going through his divorce, he involved Mr. Borden in the negotiations of his Divorce Settlement Agreement ("DSA"), and providing him a final executed copy of it when completed (see Figure 2 below).  Every banker knows that contentious divorce can be disruptive to a borrower's financial stability, and an amicable settlement often ameliorates any deterioration in the creditworthiness of the borrower.  Unsurprisingly, Mr. Borden vowed his complete cooperation.

Mr. Young kept Mr. Borden apprised of the key financial provisions of the DSA throughout the negotiations to ensure what was ultimately agreed upon were acceptable to Paragon -- this being the case because certain provisions were entirely predicated on Paragon financing.  In other words, Mr. Young would not agree to any provision unless Mr. Borden provided assurances that Paragon would deliver.

Importantly, throughout their banking relationship, Mr. Borden had always made good on his commitments, so there was no reason to doubt his integrity here -- in fact just days earlier, he had made good on financing Mr. Young's critically important acquisition of land parcels to be used for stacked valet parking at The Courtyard of Chapel Hill (discussed below in the next section).

Figure 2.  Transmittal of Executed Divorce Settlement Agreement

Paragon's Involvement in Strategic Acquisition

Concurrent with successfully arriving at an amicable divorce settlement, Mr. Young also acquired two adjacent real estate parcels on Graham St. in Chapel Hill (see Figure 3 below).
Figure 3.  Aerial View of The Courtyard of Chapel Hill & Expanded Post-Acquisition Parking 
The acquisition of these land parcels:
  1. Resolved a debilitating instance of commercial sabotage at The Courtyard of Chapel Hill,; and
  2. Substantially boosted the value of this property, such that the aggregate loan-to-value of this property would be 42%.  
And this is why Paragon financed 100% of the purchase price (see Figure 4 below) of this strategically important acquisition on January 25, 2008 . . . five days prior to finalizing the DSA.
Figure 4.  Closing Statement for Acquisition of Valet Parking Lots on Graham St.

Paragon's Fraud Is Obvious And Decidedly Malicious
Shortly after completing the acquisition of the Graham St. parcels, a SIGNIFICANT change in Mr. Borden's behavior was evident and well documented in the below documents (Figures 5 through 9), leading to Paragon dragging out a decision for nearly 4 months, when it had made prior credit decision within a few days, eventually reneging on phases #2 (Line of Credit) and #3 (Earn-Out Loan) of the agreed-upon recapitalization.

Here's what makes this diabolical fraud obvious:
  1. 100% Financing -- There is NO LEGITIMATE BANK IN AMERICA who would finance 100% of the acquisition price of the Graham St. parcels and then withhold the monies (i.e., the Line of Credit) necessary to configure those parcels for stacked valet parking use.  They even knew their line of credit would be used to pay the real estate taxes on the additional collateral (The Courtyard of Chapel Hill) and would otherwise be delinquent.
  2. Strong Business Acumen -- Mr. Young is a an accomplished business and banking executive, who would have NEVER signed the Divorce Settlement Agreement without Martin Borden's (i.e., Paragon's) absolute assurances of making good on the Recapitalization, and in reneging, Paragon DIABOLICALLY caused Mr. Young to immediately default on the DSA, which then converted an amicable divorce into a contentious one.  Again NO LEGITIMATE BANK IN AMERICA would do this.
  3. Can't Be Half-Pregnant -- In completing Phase #1 (Acquisition of the valet lots), but dragging out Phase #2 (Line of Credit) Paragon effectively prevented Mr. Young from lining up alternative financing, (especially under the circumstances).  NO LEGITIMATE BANK IN AMERICA would do this.
  4. Collusion in Staged Default -- By delaying as they had, Paragon DELIBERATELY caused monetary defaults on his loan to Wachovia on The Courtyard of Chapel Hill, which had NEVER been paid late prior thereto.  Also contributing to this default were inexplicable delays in the sale of Mr. Young's NY residence by the attorneys representing mortgagees MORGAN STANLEY and WACHOVIA.   NO LEGITIMATE BANK IN AMERICA would do this.  
  5. Premature Acceleration -- Wachovia then prematurely accelerated the loan and rebuffed offers to cure once the sale of Mr. Young's New York residence was completed -- in other words, Wachovia prevented Mr. Young from curing the fraudulent default THEY orchestrated.  NO LEGITIMATE BANK IN AMERICA would do this.
  6. Get the picture?  If not, click here to see how Morgan Stanley, Wachovia and Paragon are LINKED in this dastardly Machiavellian scheme.

Impact of Martin Borden's Betrayal
As a result of Martin Borden's obvious fraud and orchestrated betrayal, he and therefore Paragon DELIBERATELY:
  • Caused the Default on the Divorce Settlement Agreement -- this made Mr. Young appear to have bilked and defrauded his ex-wife.  This turned his amicable divorce into a contentious one, and is one of the primary reasons why his sons Michael, Kevin & Ryan have estranged themselves from him.
  • Rendered Mr. Young's Ex-Wife Homeless After Cancer Diagnosis -- By reneging on the recapitalization, Mr. Young could not provide monies for a smaller home for Maria Young, and Martin Borden was FULLY AWARE Maria Young was diagnosed with pancreatic cancer in February 2008. This additional stress no doubt contributed to her death last year.
  • Prevented Completion of the Redevelopment Work -- ALL planned redevelopment at The Courtyard of Chapel Hill ("TCoCH") and The Pit Stop of Durham ceased, and the accretion in value was abruptly stopped.
  • Prevented Resolution of Commercial Sabotage -- Mr. Young was precluded from ameliorating the unlawful blockading of the parking lot at TCoCH, thereby turning this into a travesty of epic proportion
  • Caused the TCoCH Loan Default -- In failing to provide the agreed-upon credit line, the Wachovia loan went into default, and this property was eventually lost in via UNCONTESTED foreclosure fraud, as Mr. Young was UNLAWFULLY denied legal representation.
  • Set the Stage For Paragon's Eventual Foreclosure Fraud --  A year later Paragon, initiated 20 separate elements of foreclosure fraud to steal Mr. Young's remaining real estate properties and render him homeless.

Should Martin Borden Be Put To Death ? NO !!
Martin Borden of Paragon Commercial Bank has empirically proven WHY, according to Dante Alighieri, he should be subjected to capital punishment -- however, this is not 14th Century Italy, and we are NOT barbarians.

Notwithstanding, the manner in which he and his partners in crime at Paragon Commercial Bank (notably Bob Hatley, Matt Davis and Jim Hoose) and Poyner & Spruill (in particular, David Warren and Dan Cahill) are going to be publicly prosecuted to the fullest extent of the law, they will wish they had.

These men really are the absolute scum of the earth, and according to Dante, unimaginable suffering and eternal damnation awaits them . . . let's hope his interpretation of Hell is accurate

Figure 5.  Extensive Information Provided in 3/27/08 in Contemplation of Recapitalization

Figure 6.  Urgency Expressed in 4/1/08 email As Paragon Uncharacteristically Delayed

Figure 7.  Evidence of Fraud in Martin Borden's Equivocated Response in 4/8/08 Email

Figure 8.  Paragon's Diabolical Intentions & Martin Borden's Betrayal Are Obvious

Tuesday, January 24, 2012

Bank Foreclosure Fraud - Exhibit XV - Bank's Admission of Guilt & Efforts to Retract Inadvertent Evidence

The excerpt below is Exhibit XV to the Jan. 29, 2010 Notice sent to Senior officials for North Carolina and the Federal government on mortgages that were:

Keep in mind, this instance of bank foreclosure fraud was carried out by Paragon Commercial Bank (and their attorneys, Poyner & Spruill) at the behest of Morgan Stanley (and their attorneys,Kirkland & Ellis) as a dastardly form of cover-up, so as to deprive Mr. Young of resources and undermine his professional and personal credibility, so he could not viably pursue his now massive claims in the MorganStanleyGate scandal.


Paragon's Fateful Email . . .
Figure 1 below is the email sent from Jim Hoose of Paragon to Mr. Young, which will likely manifest dire consequences for this small regional bank based in Raleigh, NC.  The gist of this transmittal and accompanying comments are as follows:
  • New Hire -- Paragon hired Jim Hoose from First South Bank predicated on his reputation as "treacherous", "duplicitous" and a "prick" as a loan administrator, with a notorious reputation for staging fraudulent foreclosures to effectively steal commercial real estate properties from unsuspecting borrowers.
  • Shoddy Work -- The errors (e.g., grammatical, spelling, incorrect property name and the "BIG Mistake" described below) in his Apr. 3, 2009 email to Mr. Young reflect a level of shoddiness that is worthy of being fired, if they were committed at other banks
  • Theft of Rents -- This email informs Mr. Young that Paragon was intercepting ALL rents based on BOGUS declarations of entirely FRAUDULENT loan defaults on four loans ($5 million), tantamount to Grand Larceny Theft
  • System Unfamiliarity -- As a relatively new employee, Mr. Hoose was seemingly unfamiliar with Paragon's systems (e.g. credit reporting, e-mail) which likely contributed to his BIG Mistake.
Figure 1 - Paragon's Fateful Email of Apr. 3, 2009

. . . Yields a BIG Mistake
This fateful email from Mr. Hoose mistakenly included the most recent (as of Mar. 31, 2009) Classified Loan Report for EVERY LOAN on Paragon Commercial Bank books.  To put into context the magnitude of this mistake, consider the following:

  1. Mr. Young's Banking Background -- In addition to his executive positions at JPMorgan and Morgan Stanley, Mr. Young was Treasurer & Division Controller at Citicorp Real Estate, which was the largest commercial real estate lender in the United States from 1989 through 1993;
  2. Extensive Knowledge -- In Mr. Young's role at Citicorp he was intimately familiar with this type of report because he had staff in 26 cities across the U.S. who regularly produced these reports for his review, which were then used as a credit and portfolio management tool, versions of which he was also responsible for filing bank regulators; and
  3. Damning Evidence -- With this background and knowledge base, Mr. Young quickly realized the magnitude of Paragon's mistake, as it proved Paragon's Foreclosure Fraud BEYOND ALL DOUBT, and then further corroborated by Mr. Hoose's desperate, but futile efforts to recover or otherwise "unsend" his Apr. 3 email . . . , which he apparently didn't realize was an impossible task.

Context to Paragon's Theft of Rent Receipts
It is important to understand that as a result of the past close personal banking relationship with Senior Vice President Martin, Paragon was fully cognizant of the situation associated with Mr. Young's:

  1. Ex-Wife -- His wife of 24 years, Maria Young, had been diagnosed with advanced pancreatic cancer shortly after their divorce was finalized in 2008 (the result of overwhelming stress from the MorganStanleyGate scandal) and had undergone radical surgery and required extensive chemotherapy and radiation treatment;
  2. Mother  -- His 83 year old mother, Edna May Young, had a heart condition;
  3. Twin Sons --  Kevin and Ryan Young were college sophomores at Duke & Maryland, respectively
  4. Oldest Son -- Michael Young had recently graduated from Duke and was living at home as he was just beginning his professional career
  5. Fiancee' & Young Son -- Leah Krier and then-two-year-old Jackson Young lived with Mr. Young in his Chapel Hill condominium, and due to Leah's career as a flight attendant, Mr. Young was the primary care provider to Jackson
  6. Financial Dependence -- The aforesaid loved ones were entirely financially dependent on Mr. Young, some of whom have been so provided for over two decades and when ALL of his income was UNLAWFULLY taken away from him while being concurrently denied his Constitutional right to legal due process the impact was beyond devastating;
  7. Compromised Position -- This malicious Machiavellian attack represented a mockery of Mr. Young's rights as a U.S. citizen for the notion of being able to replace a high six-figure income that suddenly disappears becomes impossible to replace (especially after being subjected to extensive smear campaigns in New York, North Carolina, California and Kansas) 

  Maria         Edna May           Kevin            Ryan          Michael             Jackson                 Leah                 

Paragon's Evil Intentions
Moreover, the malicious intent of Paragon's criminal fraud was to:

  1. Deny Maria Young her desperately needed chemotherapy and radiation treatments, cause destitution, manifest her homeless; and hasten her death . . . or in effect murder her after subjecting her to unimaginable suffering
  2. Force Mr. Young's twin sons to drop out of college, render them, together with their older brother Michael, homeless, and make it appear Mr. Young abandoned them such that they would estrange themselves from him
  3. Subject Leah Krier to so much stress that she suffer a nervous breakdown, end her engagement to Mr. Young, estrange herself from him, and prevent Mr. Young from ever seeing little Jackson again
  4. Cause similar destitution, homelessness and stress to Edna May Young, such that it would hasten her death via heart attack
  5. Make Mr. Young appear supremely incompetent and foster the impression that he had abandoned ALL of his loved ones, and in so doing, cause complete and utter family dysfunction and estrangement.
  6. Cause Mr. Young so much personal strife such that he go insane, commit suicide, or if necessary, assassinate him through some staged assassination.
So how does this report expose this diabolical plan?  Read on.

Analysis of Classified Loans Report
The Trend Summary of the Classified Loans Report for Paragon Commercial Bank as of March 31, 2009 is reflected in Figure 2 with comments that reveal not only the shoddy and unprofessional analytics, but a grossly flawed conclusion and attempt to cover up the fact that the quality of their portfolio is far worse than their REAL peer group.

Observation:  It seems as though Paragon has cultivated a culture whose foundation is built on fraud and deception.

Figure 2.   Classified Loan Trend Report
The below redacted listing of borrowers (Figure 3) from this Report reflects Mr. Young’s loans as a new classification as of 3/31/09 and having a standardized loan risk rating of 6, which is reported to the bank regulators. Relevant observations follow: 
  1. Given the low leverage nature of the loans and the fact that they have always had an exemplary payment history, the subject loans should have been risk-rated 1, 2 or 3 throughout their terms of existence.
  2. Notwithstanding point # 1, a risk rated loan of 6 is still NOT an “adverse”, nor “classified” loan and a loss is not expected, and therefore most certainly NOT a loan a bank would have declared in monetary default weeks earlier and was already pursuing aggressive foreclosure.
  3. The report shows that at the time Paragon declared the FRAUDULENT monetary defaults, (3/3/09) the loans were risk-rated 5 or lower (ie., better), and no legitimate bank would ever default and foreclose on a risk-rated 6 loan. Bank regulations may even forbid foreclosure on loans that are risk-rated of 6 or lower. Refer Figure 11 at the end of this Exhibit for the Bank Regulatory Definition of a risk rating of 6, along with appropriate comments. 
  4. Loans in monetary default that a bank is aggressively pursuing foreclosure are highly leveraged and typically risk-rated 9 – in the case of Mr. Young’s loans, nothing could have been further from the truth, and confirmed by Paragon’s own risk ratings. 
  5. Foreclosure is always an action of last resort, and before foreclosure is even considered, reasonable efforts are made by the bank to amicably resolve or otherwise workout a mutually acceptable modification to a loan that is delinquent. Not only did Paragon NOT make any such overture – Mr. Young’s loans were NOT THEN, and NOR EVER were delinquent!
CONCLUSION: The Classified Loans Report for Paragon Commercial Bank as of March 31, 2009, in the context of the other overwhelming evidence submitted herein, CONFIRMS BEYOND ALL DOUBT, that the Perpetrators, to wit – Messrs. Hatley, Hoose, Warren, Cahill, Davis and Borden as agents for the Paragon Commercial Bank and Poyner & Spruill engaged in CRIMINAL FRAUD, are now exposed to SIGNIFICANT DAMAGES, and should be prosecuted to the fullest extent of the law.

Figure 4.  Loan Classification Changes to Class 7

The Perpetrators are well aware their own inadvertently sent report spells “CURTAINS” for them, which explains why Jim Hoose tried to hack into Mr. Young’s email systems to retract it 31 minutes after he sent the original subject email.

Bankers & Attorneys Destined For Prison

Desperate Attempts to Recover This Report
Below (Figure 5) is the first of  Jim Hoose's 180 attempts made to recover this inadvertently sent document OVER A THIRTY HOUR TIME PERIOD !!

Figure 5.  First Attempt to Recover Inadvertently Sent Report

Evidence of Outright Desperation
Below, in Figure 6, is the first of 4 email screens listing the initial email titled “Assignment of Rents” which included the confidential Classified Loans Report as an attachment and the first of many attempts to “un-send” or otherwise recall it.

Figure 6.  First page listing attempts by Jim Hoose to recall his inadvertent email

Figure 7.  Page 2 Listing attempts by Jim Hoose to recall this email

Figure 8.  Third screen listing continued attempts to recall the subject email.

Figure 9.  Fourth (and last) screen listing attempts to recall the subject email.

Figure 10.  Jim Hoose's last attempt to retract his original email

To reiterate, Paragon Commercial Bank Made 
 180 desperate attempts over 30 hours
 to un-send the email containing Paragon’s 
Confidential Classified Loan Report
 as of March 31, 2009 !!

Figure 11.  Regulatory Definition for Loans Risk-Rated 6 & Relevant Comments