Bank Foreclosure Fraud - FRAUD Element # 13 of 20 - Denying Rights to Legal Due Process (In Denmark?)

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 # 13

 which involved . . .
Preventing Engagement of Legal Counsel
In Efforts to Deny Rights to Due Process

Spencer C. Young was denied due process and deliberately precluded from contesting this OBVIOUS FRAUD with clear, convincing and irrefutable evidence, which if allowed to be presented in ANY one of the many fraudulent foreclosure proceedings would have debunked the absurd and completely fabricated claims of the Paragon Commercial Bank and exposed their audacious FRAUD. 

Overview

This denial of due process was the result of three factors:

1. Paragon Commercial Bank and Poyner & Spruill prevented Mr. Young from engaging an attorney;
2. North Carolina law requires corporations be represented in civil legal matter ONLY by attorneys licensed in North Carolina; and therefore,
3. Paragon's entirely fraudulent foreclosures proceeded UNCONTESTED !!

Something Is Rotten In Denmark . . .

. . . if foreclosures on $20 million in real estate can proceed UNCONTESTED on someone with Mr. Young's:

• Ivy-League Educational Background -- in specialized real estate (Bachelor of Science in Hotel & Restaurant Administration) and graduate degree in finance & investments (i.e., MBA in  Finance) from Cornell University; and 
• Professional Curriculum Vitae -- nearly three decades of success in a career in corporate finance, banking and real estate investment, working for market leaders in their respective fields, as well as having pioneering expertise in capital markets commercial mortgage finance.

So how could something as preposterous as this come to fruition?

Picking Up Where Wachovia Left Off

Trawick "Buzzy" Stubbs

The preponderance of The Worst Bank Foreclosure Fraud in U.S. History was collaboratively executed by Wachovia Bank and Paragon Commercial Bank, and at the behest of Morgan Stanley.

This fraud began in the Summer of 2007 at The Courtyard of Chapel Hill with extensive commercial sabotage, and Wachovia completed their fraudulent foreclosure on this property in early 2009 because Mr. Young was UNLAWFULLY denied legal representation.  The worst foreclsoure fraud in US history then culminated with Paragon's UNCONTESTED foreclosure on, and violent eviction from Mr. Young's residence in Chapel Hill, NC on February 2, 2010.

These UNAMERICAN & NIGHTMARISH events occurred simply because Mr. Young was unable to retain or otherwise engage legal counsel.

How This Was Done
This inexplicable ability to exercise one's right to legal due process followed the EXACT methodology employed in New York with employment law firms shortly after the outset of the MorganStanleyGate scandal.  To get a sense of how this was carried out in North Carolina, one need only read the:

1. Complaint filed with the NC State Bar against Trawick H. ("Buzzy") Stubbs, Jr., which was then followed by an OBVIOUS pattern of attorneys being paid off or otherwise threatened to NOT represent Spencer C. Young's interests in North Carolina.
2. NC State Bar's Response OVER SIX MONTHs later seeking additional documentation;
3. Refusal to help by Bill Matthews of Womble Carlyle, an attorney Mr. Young had paid well over $100,000;
4. Impassioned pleas for help to the NC State Bar & the FBI, which explained in detail the widespread criminal activities and extensive corruption involved (note:  these pleas fell on deaf ears); and
5. Particulars of Paragon's fraudulent declarations of default, which Mr. Young was prevented from responding to because he was DENIED HIS RIGHT TO LEGAL REPRESENTATION.

Why This MUST Be Corrected
These UNCONTESTED foreclosures metaphorically spit in the face of inalienable rights to life, liberty and the pursuit of happiness, as professed in the U.S. Declaration of Independence, and trampled all over the right to legal due process guaranteed by the U.S. Constitution.

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 # 12 of 20 - Misapplying Funds & Derelict Loan Administration

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 # 12

 which involved . . .
Misapplying Funds in Derelict 
Administration of Loans

After absconding with all monies in Mr. Young’s deposit accounts Paragon Commercial Bank misapplied those funds to pay down the principal balance of the line of credit, instead of for debt service on ALL four loans, thereby fraudulently perpetuating their bogus delinquent status, according to Paragon. 

Bob Hatley of Paragon

This was an instance of: (1) Breach of Fiduciary Duty; (2) Negligent Loan Processing and Administration; and (3) Unscrupulous and Deceitful Banking Practice. Paragon Commercial Bank failed to apply available funds to maintain the current status of each loan, in contradiction of long-standing Auto-Pay agreements on ALL of the subject mortgage loans since inception dating back to December 2004.

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 # 11 of 20 - Stealing Monies on Deposit

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 # 11

 which involved . . .
Stealing Monies on Deposit

Although banks have the right to close the deposit account of a customer at its whim (thanks to a strong bank lobby in Washington DC), they do NOT have the right to abscond with the funds held in those accounts when they do so. Because the subject loans were NOT in default, and they held funds in excess of debt service requirements, this was an instance of grand larceny theft of approximately $23,000. 

Jim Hoose of Paragon

Despite being put on notice that closing the accounts and absconding with the funds would be deemed: (1) “a malicious act with intent to inflict emotional distress”; (2) “grand larceny”; and a (3) “fraudulent conveyance”, Paragon Commercial Bank proceeded with this transgression.

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 # 10 of 20 - Closing Deposit Accounts With Malicious Intent

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 # 10

 which involved . . .
Closing Deposit Accounts With Malicious Intent

Paragon CEO Bob Hatley

Paragon Commercial Bank abruptly closed all of Mr. Young’s deposit accounts, knowing it would make it additionally difficult for Mr. Young to make monthly debt service payments on the Subject Loans. In addition, such an action was intended to cause Mr. Young additional distress because of the many auto-pay arrangements Mr. Young had in place with various third party vendors. 

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 # 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.