Bank Foreclosure Fraud - FRAUD Element # 16 of 20 - Denying Right To Due Process & Legal Representation

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 # 16

 which involved . . .
Denying Reasonable Requests For
Adequate Time To Engage Counsel

Despite the highly compromised and financially tenuous position Mr. Young was orchestrated into, certain Judges (e.g., Donald Stephens and Carl Fox of Wake County) or Court Clerks (i.e., James Stanford of Orange County) oddly denied his motions for continuance in order to avail sufficient time to hire an attorney or even address the fact that he was being UNLAWFULLY prevented from engaging an attorney.  These corrupt men are a disgrace to humanity and have no business in the roles they each fill -- they each  represent a clear and present danger to the public.

Carl Fox                         James Stanford                   Donald Stephens

Denial of Right to Legal Due Process
In each instance, Mr. Young recounted how one attorney after the other who was engaged, ended up resigning for unspecified or entirely spurious reasons. Moreover, Mr. Young waxed eloquent of his extensive discussions with many other prospective attorneys, which were also fruitless, because Mr. Young learned there were counterparties linked to Paragon Commercial Bank and Poyner & Spruill (the "Perpetrators") who were actively getting the word out that anyone who represented Mr. Young and his interests would suffer unspecified dire consequences. 

Widespread Corruption

And what struck Mr. Young as especially odd, was while Paragon Commercial Bank aggressively pursued their FRAUDULENT foreclosures on his many North Carolina real estate investments, no assistance or guidance whatsoever was ever availed to Mr. Young concerning how to address or otherwise overcome the Perpetrator’s deliberate denial of Mr. Young’s rights to legal representation and due process. Moreover, the NC State Bar provided no assistance whatsoever, despite diligent attempts to engage their assistance through Luella Crane, who is the Director of Attorney/Client Assistance at the North Carolina State Bar. Mr. Young also received a disturbing run-around from the NC Dept of Justice, suggesting the level of corruption is downright scary.

Unintended Consequences

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 # 15 of 20 - Secretly Accelerating the FRAUD- Induced Appointment of a Receiver

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 # 15

 which involved . . .
Secretly Accelerating the FRAUD-
Induced Appointment of a Receiver

Jim Hoose

Paragon Commercial Bank and Poyner & Spruill (the "Perpetrators")were never required to prove there was a default -- rather all foreclosure actions they had undertaken were based solely on equivocations and bold-faced lies contained in an affidavit submitted by Jim Hoose of Paragon Commercial Bank – with absolutely no burden whatsoever of having to prove there was in fact a default. This was patently preposterous and entirely abusive.

The Dastardly Plan
And since all of the subject loans were made to corporations, and Mr. Young was denied his rights to engage legal counsel, the bogus assertions by the Perpetrators could not be challenged. And even though Mr. Young had in his possession evidence contained herein and in the Exhibits, that proved there was NEVER a default and that ALL legal actions undertaken by the Perpetrators were predicated on an audacious CRIMINAL FRAUD, the Perpetrators were allowed to aggressively proceed with their entirely FRAUDULENT foreclosures uncontested.

The Crooked Judges Involved

These facts were brought to the attention of Wake County Judge Carl Fox, Orange County Court Clerk James Stanford, and Wake County Judge Donald Stephens, and in each case, their response indicated their ethics had been severely compromised, and behaved in thoroughly corrupt manner – and there is something terribly wrong with this. Fox knowingly presided over the fraudulent appointment of a receiver, Stanford knowingly presided over most of the fraudulent foreclosures, and Stephens colluded with Poyner & Spruill to grant an absurd ex parte motion.  Details are reflected in the documents listed below, and accessible via hyperlink.

Carl Fox                         James Stanford                   Donald Stephens

Moreover, Poyner & Spruill held a secretive hearing with Justice Donald Stephens without Mr. Young’s knowledge to grant an uncontested motion to accelerate a hearing to appoint a Receiver, and deliberately delayed Mr. Young’s receipt of this highly questionable and grossly inequitable ruling. And under the circumstances there was no need for something that is typically reserved for situations where a child’s welfare is endangered.

Those Responsible Are As Evil As Evil Can Be
These actions were entirely FRAUDULENT and had UNLAWFULLY intercepted ALL of Mr. Young's income, thus knowingly preventing him from funding critically necessary cancer treatments for his wife of 24 years (Refer to national television coverage on Maria Young's passing in the below video), who passed away two years later.  This also gave his adult sons the impression Mr. Young had deliberately abandoned them financially -- as a result, they have estranged themselves from him.

Supporting Documentation

_______________________________________________________Page #__

15	Secretly Accelerating theFRAUD-Induced Appointment of a Receiver These documents show how Paragon and Poyner & Spruill collaborated with judges to accelerate the appointment of a Receiver without ever having to prove there was in fact a default on the subject notes while denying Mr. Young from presenting evidence that show all proceedings to be a FRAUD.	Complaint & Motion for Appointment of a Receiver– Superior Court – 09-CVS-8798 – 5/4/09	1-12
		Emergency Motion for Appointment of Receiver – Superior Court – 09-CVS-8798 – 5/8/09	13-18
		Cover letter of  Ex Parte Documents received two business days before hearing – May 11, 2009	19
		Order Shortening Time and Notice of Hearing Superior Court – 09-CVS-8798 – 5/11/09 (Executed)	20-22
		Order Shortening Time and Notice of Hearing Superior Court – 09-CVS-8798 – 5/11/09	23-25
		Summary of Key Points for Ex Parte Hearing which Spencer Young was precluded from defending (Denial of Right to Due Process / Loans NOT in default)	26-29

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 #14 of 20 - Wasting Taxpayer Monies With Intimidation Tactics

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 # 14

 which involved . . .
Wasting Taxpayer Monies
With Intimidation Tactics

Throughout this ordeal, the Paragon Commercial Bank and their attorneys (Poyner & Spruill) employed a wide range of intimidation tactics. One such tactic they often used was to deliver multiple copies of the same document on different occasions, and arrange delivery by the Orange County (NC) Sheriff. This was entirely frivolous and completely unnecessary and an OBVIOUS waste of law enforcement resources. 

This tactic became so prevalent and over-used that the fellow most often called upon to do this volunteered that in his career, he had never been asked to do something like this before, and Orange County Sergeant R.A. Simpson submitted an affidavit to attest to this aberration and abuse of public resources.  And what makes this especially ironic is that law enforcement officers were utilized in support of CRIMINAL BANK FORECLOSURE FRAUD, including the violent assault via SWAT team.

Corrupt Orange County Sheriff Lindy Pendergrass And His Weapons of Mass Destruction

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 # 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.