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.