Bank Foreclosure Fraud - FRAUD Element # 9 of 20 - Reducing Property Values by Interfering with Leasing And Rent Collection Activities

The last phase in the Worst Bank Foreclosure Fraud in U.S. History entailed TWENTY separate elements of FRAUD on mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC, the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 9

 which involved . . .

Reducing  Property Values by Interfering

 with Leasing & Rent Collections

The malicious collaborative acts of Paragon Commercial Bank and Poyner & Spruill (the "Perpetrators") spooked various tenant prospects who had executed letters of intent and were otherwise ready to execute a long term lease. The capitalized value of the leases the Perpetrators had undermined through their malicious actions was $3.2 - 3.5 million, based on lost rental income of $263,000, using then market cap rates. 

The documents listed below (all accessible via hyper-link), show the leasing activities at The Pit Stop of Durham, which Paragon’s malicious fraud had undermined. The net effect was a loss of rental income totaling $263,000, and this  incremental revenue stream represented an increase in commercial property value ranging from . . .

$3.3 million and $3.5 million 

Doc. A -- Emails exchanged with AAA Auto Care in 12/08 which rectified the rent arrears resulting from  property manager (Hunter & Associates and York Properties) underbilling.
You will also note discussions concerning leasing adjacent Unit K, and making AAA Auto Care the Anchor tenant to this specialty retail mall featuring a wide array of automotive services and eateries.
Doc. B --1/22/09 email and Letter of Intent to Dutch Bros. Coffee Shop concerning leasing Unit I
Doc. C -- Executed Letter of Intent to lease Unit I with La Tropicale Catering revisited Q1 2009
Doc. D -- Email and Letter of Intent exchanged with Bobby’s Salon in Jan. 2009 re: leasing Unit J
Doc. E -- Email and Letter of Intent exchanged with Bobby’s Salon in Feb. 2009 concerning leasing Unit J
Doc. F -- Lease sent to Bobby’s Salon for execution on March 10, 2009 concerning leasing Unit J
Doc. G -- Email from Bobby’s Salon on in Feb 17, 2009 indicating its intent to lease Unit J
Doc. H -- Email to Bobby’s Salon on Mar. 20, 2009 inquiring why they never executed the Unit J lease
Doc. I -- 3/3/09 email and Letter of Intent to Broker for Japanese Restaurant concerning Unit I
Doc. J -- Email and Letter of Intent sent to The Pit Bar & Grill on 3/19/09 re: leasing Units B, C & D
Doc. K -- Email, Letter of Intent and Lease sent to The Pit Bar & Grill on 3/24/09 re: Units B, C & D
Doc. L -- Lease sent to The Pit Bar & Grill for execution on 3/27/09 concerning leasing Units B, C & D

In addition, to obtain the cooperation of tenants, the Perpetrators promised they would not seek to collect rent arrears after they foreclosed on the property, and would look for them to pay only their current rent. At the time they did this, rent arrears were approximately $950,000, and this substantially impeded Mr. Young’s ability to collect these monies. They also used this form of economic duress to gain the tenant’s cooperation in their FRAUD. 

Ergo, total damages caused by this element of fraud alone approaches . . .

$5 million.

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist.

Bank Foreclosure Fraud - FRAUD Element # 8 of 20 - Defamation of Owner and Threatening Tenants

The last phase in the Worst Bank Foreclosure Fraud in U.S. History entailed TWENTY separate elements of FRAUD on mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC, the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 8

 which involved . . .

Defaming Property Owner With Outrageous

 Lies and Threatening Tenants

Paragon Commercial Bank’s March 25, 2009 Letter issued by Mr. Hoose to all tenants, as well as from David Warren of Poyner & Spruill in an ensuing April 9 letter both contained outrageous lies which were embellished with follow-up calls that disparaged Mr. Young as a deadbeat. Their letters also contained threats of unspecified legal consequences to any tenant who did not fully cooperate with their bullying baseless and entirely FRAUDULENT directives – which is a blatant instance of economic duress, slander and libel.

Hoose                                               Warren

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist.

Bank Foreclosure Fraud - FRAUD Element # 7 of 20 - Undermining Property Value By Disrupting Property Operations And Commerce

The last phase in the Worst Bank Foreclosure Fraud in U.S. History entailed TWENTY separate elements of FRAUD on mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC, the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 7

 which involved . . .

Undermining Property Value By Disrupting
Property Operations And Commerce

Hoose                                       Warren

On March 25, 2009, Paragon Commercial Bank personally visited with each tenant to hand-deliver a fraudulent notice of default and inform them they had declared the mortgage loan on the property in default and to direct them to stop making rent payments to Mr. Young – this proved to be disruptive to business operations and overall commerce at the subject property, known as The Pit Stop of Durham. 

This caused a great deal of anguish and confusion for Mr. Young’s tenants, introduced a dark cloud of uncertainty, and consumed much of their time unproductively, while also causing them to each incur a great deal of unnecessary legal expenses from having to confer with their attorneys. This being the case because they were unsure of how to respond to Paragon’s demand to remit their rent directly to them, without any proof of default (remember, no legitimate proof existed, because the defaults declared on ALL four of Mr. Young’s mortgage loans with Paragon were each an instance of CRIMINAL FRAUD). 

And it is noteworthy how Paragon surreptitiously undertook this FRAUDULENT and baseless action on March 25, 2009 but chose not to advise Mr. Young (via email) of their disruptive action until 9 days had passed (i.e., April 3, 2009).

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist.

Bank Foreclosure Fraud - FRAUD Element # 6 of 20 - Embezzlement of Rental Receipts from Tenants

The last phase in the Worst Bank Foreclosure Fraud in U.S. History entailed TWENTY separate elements of FRAUD on mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC, the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 6

 which involved . . .

Embezzling Income Through Fraudulent

Exercise of Assignment of Rents

The Pit Stop of Durham

On March 25, 2009, Paragon Commercial Bank hand-delivered a letter to all of Mr. Young’s commercial tenants at The Pit Stop of Durham, which FRAUDULENTLY stated his company, Spencer C. Young Investments, Inc., had defaulted on its loan to Paragon, and therefore Paragon was exercising its right under the terms of the loan agreement to begin collection of all rental proceeds from tenants. 

Jim Hoose

With devious intentions, Paragon did not notify Mr. Young of having taken this action until April 3, 2009, when it sent an e-mail, albeit without giving him a call to confirm receipt -- going to Mr. Young was often subjected to cyber attacks that delayed his keeping up with e-mails. Jim Hoose of Paragon also sent a letter dated April 2 by regular mail, which oddly wasn't received until April 11 – it certainly shouldn’t take 9 days for a letter sent from Raleigh to be received in Chapel Hill. Paragon's sinister intention was to further perpetuate their fraud, while compromising Mr. Young's ability to timely respond. 

To be clear – the declared monetary default was a FRAUD, as it was entirely concocted by Paragon, with the assistance of Poyner & Spruill. Accordingly, these efforts to divert ALL of Mr. Young’s income constituted yet another felony – to wit, EMBEZZLEMENT of income, and an instance of grand larceny theft. 

The execution of these sinister actions were intended to catch Mr. Young off-guard, cause confusion among Mr. Young’s tenants, and cut off all of Mr. Young’s income, such that he was suddenly unable to continue supporting the large extended family that had long depended on him. And by doing this, the Perpetrators intended to cause intense personal strife to all of Mr. Young’s family, and give the false impression that he was abandoning them. This is yet another reason why the identified Perpetrators are aptly referred to as outright MONSTERS. 

In an attempt to expose the FRAUD and stem the damages, Mr. Young fired off letters and had extensive conversations with tenants and members of his extended family throughout the month of April in an effort to stem the tremendous damage the Perpetrators were causing. 

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist.

Bank Foreclosure Fraud - FRAUD Element # 5 of 20 - Meritless Demand For Payment In Full

The last phase in the Worst Bank Foreclosure Fraud in U.S. History entailed TWENTY separate elements of FRAUD on mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC, the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 5

 which involved . . .

Making Meritless Accelerated 

Demands for Payment in Full

On March 12th and 18th of 2009, Poyner & Spruill declared the acceleration of four loans totalling $5,057,000, on behalf of Paragon Commercial Bank, demanding immediate payment in full for ALL of the loans. 

Loan Name & Loan #	Loan Balance [1]	Starting Date	Redevelopment Value
TPSoD Mtge. (Loan# 2147)	$3,905,000	Dec. 2004	$7,750,000
Line of Credit (Loan# 3714)	$100,000	Oct. 2007
MVC Mtge. (Loan 2346)	$261,000	Feb. 2005	$525,000
TCoCH Valet Lots Mtge.[2] (Loan# 3857)	$791,000	Jan. 2008	$11,760,000
Total	$5,057,000		$20,035,000
[1] Loan balances when Paragon Commercial Bank and Poyner & Spruill began their FRAUD
[2] This property was acquired in September 2005, with $2.6 million in mortgage financing provided by Wachovia Bank.  In the acquisition of the TCoCH Valet Lots, Paragon was provided a second lien mortgage against the office/ retail complex, and the value shown is for the entire property.

Since this was predicated entirely on Paragon’s FRAUD, such demands were meritless, and constituted a wrongful acceleration with malicious intent, thereby exposing Paragon to SIGNIFICANT LENDER LIABILITY, and exposed Poyner & Spruill to liability for significant damages for its complicit role.  On March 13, 2009, Mr. Young fired off a missive to Bob Hatley, CEO of Paragon putting them on notice they "will be responsible for significant damages realized from youir criminal fraud".

Demonstrating obvious malicious intent, they did this with the knowledge Mr. Young would be unable to meet this unwarranted call on the loans, especially under the circumstances, in that: (1) Mr. Young’s his financial affairs were compromised from extensive FRESCA [3] criminal activities; and (2) the then completely disjointed state of the credit markets were so severe, the likes of AIG, GMAC, Lehman Brothers and Wachovia were brought to their knees. Ergo, it was patently absurd to suggest the arranging of alternative replacement financing was the least bit feasible – in fact, it was an effectively impossible task at the time, and the Perpetrators KNEW it, thereby further underscoring what complete inhuman monsters they are [4].

Most importantly, had the Perpetrators not acted in an obviously CRIMINAL and FRAUDULENT manner, and had prudently serviced the Subject Loans as they had done each month for the past four years, the loans would continue their current status uneventfully, and this matter would never have transmogrified to its currently grave state.  On March 20, 2009, Mr. Young fired off another strongly worded epistle to Bob Hatley, further putting him on notice of the consequences of his misdeeds.

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist. 

---

[3] FRESCA is a acronym for criminal activities of Fraud, Racketeering, Extortion, Sabotage, Corruption and other unlawful Abuse-of-authority (including Assassinations).

[4] Note that the criminal investigations called for herein will reveal the Perpetrators are in-fact linked to the other FRESCA crimes in a MUCH LARGER and MORE SIGNIFICANT MATTER that crosses state lines.

Bank Foreclosure Fraud - FRAUD Element # 4 of 20 - Declaring Fraudulent Monetary Defaults

The last phase in the Worst Bank Foreclosure Fraud in U.S. History entailed TWENTY separate elements of FRAUD on mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC, the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 4

 which involved . . .

Declaring Maliciously Orchestrated and 

Entirely Fraudulent Monetary Defaults

On February 24th and March 3rd, 2009, Paragon Commercial Bank, declared FRAUDLENT monetary defaults on four mortgage loans (including his residence in Chapel Hill), predicated entirely on its sinister acts described in FRAUD Elements #1 (Rejected Deposits), #2 (Ignored Instructions) & #3 (Unauthorized Disbursements). 

Bob Hatley

Given Mr. Young’s extensive background in commercial mortgages (as noted in Exhibit VIII) he was especially astonished by such audacious and obviously fraudulent acts. In response, Mr. Young demanded an explanation, and fired off missives to Mr. Hatley on February 25, and March 6, 2009, as principal representative for Paragon. In those communiqués, he made clear such blatant acts of criminal fraud would cause substantial damages for which at Paragon would be held accountable; and Mr. Young once again put Paragon on notice to correct their errors evidencing “derelict loan administration”, and DEMANDED they cease and desist engaging in such CRIMINAL acts. Mr. Hatley never responded, the Perpetrators did NOT refrain, and instead amplified their unlawful efforts. 

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist. 

Bank Foreclosure Fraud - FRAUD Element # 3 of 20 - Wired Monies Without Authorization

In the last phase of the Worst Bank Foreclosure Fraud in U.S. History, there were TWENTY elements of FRAUD employed entailing mortgage loans that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default
• And with regard to Mr. Young residence in Chapel Hill, NC the subject mortgage loan was PAID-IN-FULL on the day he was violently evicted by a SWAT team of corrupt cops.

The 20 Elements of Fraud Were Perpetrated By . . .

. . . At the behest of . . .

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

This entry covers . . .

FRAUD ELEMENT # 3

 which involved . . .

Wiring Monies Without Authorization

In response to the abrupt cancellation of rental receipts via ACH, Mr. Young made arrangements to receive such rental receipts at another bank; however, in a diabolical effort to anger Mr. Young’s tenants, Paragon Commercial Bank processed the ACH rental payments anyway, thereby duplicating their rent payments that month. Mr. Young learned of this from an irate tenant. 

Borden

On Feb. 10, 2009, Young pointed out in an email to Carol Horton of Paragon (where Mr. Hatley and Mr. Borden were also copied), the rental receipts “were reversed elsewhere, so no ACH’s should be reversed on the Paragon end”. On that same day, Mr. Young sent Mr. Hoose an email (also copying Mr. Hatley) and said “I expressly told you NOT to reverse the ACHs because I indicated they were already reversed at the other counterparty bank”. 

Then on Feb. 11th, Mr. Young sent Mr. Hatley a memo asking him to “ensure Paragon does NOT reverse any ACH Deposits as I have expressly articulated to your staff on many occasions (and you were also copied). As the duplicate deposits were reversed at the other receiving bank, they should NOT be reversed by Paragon, as those funds are necessary to make the February 2009 debt service payments – there is no basis nor legitimacy for doing so, and you do NOT have my authorization to do so. And if you did in fact do so, it would indicate you are fraudulently trying to orchestrate unlawful loan defaults.” 

Hoose

Ignoring Mr. Young’s reiterated directions, on Feb. 13, 2009, Paragon Commercial Bank wrongfully wired out numerous deposits of tenant rent remittances, thereby sending valid rental income deposits back to each of the tenant’s bank accounts at their respective financial institutions. This was done without authorization, nor legitimacy, and in direct contradiction to express written instructions given by Mr. Young to NUMEROUS Paragon employees on NUMEROUS occasions. This also caused tremendous confusion, making recovery of this rental income a time-consuming and deliberately vexing task. 

Hatley

These actions were carried out with malicious intent on the eve of the loan payment due dates for the largest loans (i.e., Feb 15) so as to artificially create an insufficient fund balance to service the loans at that time. Clearly, had Paragon serviced the subject loans pursuant to the explicit and unambiguous instructions from Mr. Young on February 6th and thereafter, the loans would have been fully current, as they had always been since inception. 

Importantly, Congress did NOT bail out Banks so they could defraud and persecute the taxpayers who bailed them out. Moreover, the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist.