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