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:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default, and with regard to Spencer C. Young's residence in Chapel Hill, NC. . 
• PAID-IN-FULL !!

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.

Click here for more on this recapitalization.

. . . 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

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:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default, and with regard to Spencer C. Young's residence in Chapel Hill, NC . . .
• PAID-IN-FULL !!

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

Bank Foreclosure Fraud - Exhibit XVII - Events Justifying Expletives: An Historical & Hysterical Perspective

In light of the gravity of this matter as The Worst Bank Foreclosure Fraud in U.S. History, a respite of relevant comical relief was in order when on January 29, 2010 :

• The 31-count indictment against Paragon Commercial Bank and Poyner & Spruill (resulting from their having perpetrated TWENTY separate elements of criminal fraud) was filed with the North Carolina Dept. of Justice; 
• North Carolina state and local leadership and appropriate Federal officials were concurrently apprised; and; 
• National and local media were alerted about this in a press release on that day. 

Accordingly, the presentation reflected below was included as Exhibit XVII to the Jan. 29, 2010 Notice on mortgages that were:

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default, and with regard to Spencer C. Young's residence in Chapel Hill, NC . . .
• PAID-IN-FULL !!

You will note it is presented in a "countdown" format similar to David Letterman's Top Ten List, however, in this instance we recount the dozen historical events where the use of expletives has been justified:

When Was the Use of “@#$%” Justified?

Until recently, there were only twelve instances in the history of mankind where utterance of the "F" word was considered justified and appropriate.

They were also known as

“The Dirty Dozen”

Here they are, presented in chronological order . . .

12. "What do you @#$%ing mean it was just a silly little apple!" 

-- Adam, In the beginning . . .

11. "Scattered @#$%ing showers,
my ass!" 

-- Noah, 4314 BC

10. "How should I have @#$%ing known he could do something other than carpentry?" 

-- Pontius Pilate, 33 AD 

9. "You want WHAT
on the @#$%ing ceiling?" 

-- Michelangelo, 1566 

8. "Where did all these @#$%ing Indians come from?" 

-- General George A. Custer, 1877

7. "What the @#$% do you mean,
we’re sinking?" 

-- Capt. Edward J. Smith of RMS Titanic, 1912

6. "Where did all the @#$%ing buyers go to?!"

-- Richard Whitney, NYSE Floor Broker, 1929

5. "Where am I, and what the @#$% happened to all my fuel?"

--Amelia Earhart, 1937

4. "What the @#$% was that?" 

-- Mayor of Hiroshima, 1945 

3. "I need this parade like a @#$%ing hole in the head!"

-- JFK, 1963

2. "Aw c'mon. Who the @#$% is gonna to find out?"  

-- Bill Clinton, 1997

1. "Geez, I didn't think they'd get this @#$%ing mad!" 

-- Saddam Hussein, 2003

. . . and, NOW COMES a thirteenth event, whereby Paragon Commercial Bank, together with Poyner & Spruill, colluded on fraudulent mortgage loan defaults, and then aggressively pursued bogus foreclosures, while preventing the ability to defend against the baseless claims on loans with exemplary credit histories . . .

IN RESPONSE:

“How could you do something so deceitful and malicious, and cause unimaginable suffering and damages to me, my family and others? Seriously, what the @#$% is wrong with you !?!”

-- Spencer Young, 2009

Bank Foreclosure Fraud - Exhibit XIV - Fraudulent Eviction Notice & Deceitful Delivery Methods

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

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default, and with regard to Spencer C. Young's residence in Chapel Hill, NC . . .
• PAID-IN-FULL !!

It was written approximately two years ago.

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.

________________

As noted herein, Paragon and Poyner & Spruill, followed through on the FRAUDULENT foreclosure sale of Mr. Young’s residence which he shares with his fiancée, Leah Krier and toddler son, Jackson Young. 

Spencer C. Young                   Jackson S. Young                          Leah R. Krier

 Mr. Young has made it clear the foreclosure is a FRAUD, and that he will NOT under any circumstances vacate the residence that he rightfully owns.  Accordingly, any foreclosure sale would be deemed a fraudulent conveyance and therefore null and void. This explains why their were NO bidders.

David Warren

The eviction notice dated Nov. 11, 2009 was issued by David Warren of Poyner & Spruill, on behalf of Paragon Commercial Bank further illustrates what MONSTERS they are.

 As noted below, they originally tried to render Mr. Young and his new young family homeless just BEFORE Thanksgiving; however, this notice was deliberately withheld so it wouldn't be delivered until AFTER their dastardly act of eviction was carried out [it was received on Dec. 2, 2009].

IMPORTANT:  Throughout this ordeal, Paragon Commercial Bank and Poyner & Spruill withheld notices to effectively eliminate Mr. Young's ability to thwart their CRIMINAL FRAUD, further evidencing a reprehensible level of deceit that appears to be pervasive throughout these organizations.  In other words, there is really no constructive legitimacy to these organizations.

Congress did NOT bail out the Banking industry so they could defraud and persecute the taxpayers who bailed them out, and the U.S. Judicial system was not established by our forefathers to be manipulated and gamed in the manner Poyner & Spruill regularly operates.

Bank Foreclosure Fraud - Exhibit XVI - Press Release: Indictment Filed Against Bank Execs & Attorneys

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

• ALWAYS paid before the monthly due date
• NEVER delinquent
• NEVER in default, and with regard to Spencer C. Young's residence in Chapel Hill, NC . . .
• PAID-IN-FULL !!

This Exhibit reflected the press release issued widely to national and local news media, and senior state, local and federal officials.

IMMEDIATE RELEASE

Raleigh, NC – Jan. 29, 2010 – A 31-count indictment based on extensive criminal fraud was filed today with North Carolina’s Department of Justice against executives at Paragon Commercial Bank and attorneys of Poyner & Spruill. Those named at Paragon, an upstart bank based in Raleigh, were CEO Robert C. Hatley, along with Martin Borden, Matthew C. Davis and James W. Hoose. Those included from Poyner & Spruill, a law firm also based in Raleigh, were Daniel G. Cahill and David M. Warren. 

The filing emphasized two themes: (1) “Congress did NOT bail out the Banking Industry so they could defraud and persecute the taxpayers who bailed them out”; and (2) “the corruption observed in this matter alone, suggests a threat to the integrity of the U.S. Justice System may exist.” Among the charges were: “deceitful banking practices”; “embezzlement”; “fraudulent defaults” “wrongful foreclosures”; “grand larceny”; and “intentional infliction of economic duress and emotional distress”. 

Spencer C. Young, a 53 year-old redeveloper and former banking executive, filed the complaint, pertaining to $5 million in loans from Paragon to his affiliated companies, and collateralized by properties whose redevelopment value is estimated at $20 million. Over 300 pages of evidence accompanied the filing, detailing an “assault [that is perhaps] the most brazen and malicious commercial mortgage fraud ever perpetrated by a bank”. 

Mr. Young described those indicted today as “monsters” motivated by greed to undertake actions intended to bring “destitution” to his extended family, long reliant on him for financial support. He added they deliberately sought to bring about “homelessness” to his family, including his: (1) 83-year-old mother with a heart condition; (2) ex-wife, stricken with pancreatic cancer; and (3) toddler son. Moreover, they “attempted to deny his ex-wife critical chemotherapy and radiation treatments”, and “force” his sons attending college (at Duke and Maryland) “to drop out”. He volunteered “family and friends have prevented such horrible manifestations to date; however, the authorities MUST NOW intervene” – warning, “otherwise there may also be loss of life”. Asked to explain, he quipped “read the indictment – it’s posted on www.TWSYF.com”. 

Offering a further sobering observation, Mr. Young declared: “If U.S banks were allowed to foreclose uncontested and without consequence on mortgage loans that were NEVER delinquent – Mr. Obama could forget about his Jobs Bill, for no one would borrow, our economy would collapse, and our American government would follow suit . . . and that’s the heart of this matter.” Accordingly, the indictment was sent to “Distinguished Representatives of North Carolina” ranging from Governor Bev Perdue to the county Sheriffs, copying Federal officials, and U.S. Senate Committees on Banking; the Judiciary; and Finance. 

Even more disturbing, the indictment allegedly represents the “tip of the iceberg” of a “far more significant matter crossing state lines” and involving “banks bailed out with TARP monies, numerous prominent attorneys, and government officials who violated their oaths to serve and protect the public.” Today’s filing provided limited details as they were deemed “outside the scope” of the complaint; however, it was indicated the particulars would be made available shortly. 

Concerning next steps, Mr. Young said: “This marks the beginning of an unrelenting pursuit for justice encompassing: (1) prosecuting those responsible; (2) reclaiming the properties and monies stolen; (3) restitution for significant damages; (4) punitive compensation for anguish and suffering; and (5) regaining my dignity.” 

Mr. Young continued ”Today’s indictment illustrates how unbridled greed can shackle unsuspecting innocents with unimaginable pain and suffering. The time has come to prove the mightiness of truth, prevail decisively, and finally free my family from a nightmare of unrelenting torment.” 

About the Claimant 

After receiving his Bachelor of Science degree and MBA in Finance from Cornell University, Spencer C. Young embarked on a career spanning over two decades in corporate finance and banking, while concurrently investing in commercial real estate. 

Mr. Young obtained his CPA license while at Arthur Andersen & Co. and then held executive positions at firms recognized as leaders in their industries: Dun & Bradstreet (Business Information Services), Citicorp (Commercial Real Estate Lending), JPMorgan (Commercial Banking) and Morgan Stanley (Investment Banking). 

Of note, he: (1) served as Division Controller/Treasurer for Citicorp Real Estate; (2) founded the commercial mortgage backed securities (“CMBS”) business at JPMorgan; (3) was Chief Operating Officer of JPMorgan’s Commercial Mortgage Finance Unit; and (4) ran Morgan Stanley’s CMBS Conduit operation, which played a pivotal role in Morgan Stanley’s # 1 ranking in CMBS issuance for three consecutive years. 

Spencer C. Young also developed the IQ® (“Institutional Quality”) brand, arguably the most successful proprietary brand of CMBS – valued at $250 million when established, and considerably more thereafter. 

Mr. Young is a lifetime member of Mensa, and an active member of Intertel. 

Contact Information: 

Spencer C. Young Investments, Inc. 

134 Meadowmont Village Circle 

Chapel Hill, NC 27517 

(919) 370-7544 

www.SCYInv.com 

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