Bank Foreclosure Fraud - Exhibit XI - Exemplary Loan Payment History As Evidence & Devastating Human Toll

This Exhibit, contains irrefutable damning evidence to The Worst Bank Foreclosure Fraud in US History.

Specifically, the supporting documentation accessible by denoted hyper-links, evidences the exemplary loan payment history of Spencer C. Young and his affiliated companies.  The corroborating Transaction History Reports for ALL loans with Paragon Commercial Bank reflect the financial histories for each loan since inception of the initial loan on December 14, 2004.  

Overwhelming Evidence of Fraud

TWO important points need to be made here:

1. The reports were prepared by Paragon Commercial Bank, and they clearly evidence the monthly debt service payments for each loan were ALWAYS made ON TIME since their inception . . . that is until Paragon Commercial Bank and Poyner & Spuill began executing their malicious fraud in January 2009; and 
2. This overwhelming evidence of bank foreclosure fraud was PREVENTED from being submitted during the bogus foreclosure hearings because Spencer Young was UNLAWFULLY denied legal representation, which Judge Carl Fox was apprised of.

Not only were the payments made a timely basis, they were made more than two weeks BEFORE their final due date, including the grace period, and were carried out pursuant to automatic payment arrangements made for each loan.

Note: To access the Transaction History Report for each of the four loans listed below, click on the hyper-linked page numbers in the "Pages" column.  The hyper-links in the "Loan Name & Loan #" column provide extensive context to the foreclosure fraud perpetrated on each loan.

Pages	Loan Name & Loan #	Loan Balance	Start Date
1 - 7	TPSoD Mtge. (Loan# 2147)	$3,905,000	Dec.2004
8 -10	TCoCH Valet Lots Mtge. (Loan # 3857)	$791,000	Jan. 2008
11 -13	Line of Credit (Loan # 3714)	$100,000	Oct. 2007
14 - 20	MVC Mtge. (Loan # 2346)	$261,000	Feb. 2005
	Total	$5,057,000

Note: The above line of credit was also collateralized by The Pit Stop of Durham.  Moreover, the auto-pay arrangements were suspended briefly for a couple of weeks in January 2009 to: (1) cover a time-sensitive $50,000 wiring of funds, but were then reinstated.

Collateral Properties

The above loans were collateralized by $20 million of real estate properties which Paragon promptly ran into the ground by:

1. Disrupting property operations and related commerce
2. Undermining leasing activities 
3. Threatening tenants; and
4. Abruptly ending all redevelopment work that was in progress at The Courtyard of Chapel Hill and The Pit Stop of Durham

Dastardly Acts

Mr. Young noticed on the first day of the 2 week payment period, Mr. Hoose would look to see if any of Mr. Young’s bank accounts had insufficient funds for the required loan payment, and then overdraft the account to cause bounced checks and NSF charges. This contradicted the arrangement to draft the debt service payments on a specific date, which had been uneventfully in place with Paragon in the years prior to Mr. Hoose’s involvement. 

Long-Standing Arrangements

Jim Hoose

Although this seldom occurred – if an account balance was insufficient to make a loan payment, Paragon would alert Mr. Young, who would then transfer funds from another account, so the loan payment would be timely processed. However, in the event Paragon could not reach Mr. Young by phone they were NOT to process the loan payment but notify him by email, so he could address the situation within the two-week grace period – the loan payments were NEVER late.  

When Jim Hoose arrived, these arrangements were unilaterally changed for entirely diabolical reasons.

The Hiring of a Heartless Repugnant Thug

James W. Hoose was hired in mid-2008 by Paragon based on his notorious reputation as a unscrupulous cut-throat credit administrator at First South Bank.  His mandate was to specifically head up this audacious bank foreclosure fraud against Spencer C. Young and his real estate investment interests.

Mr. Hoose is the person who headed up executing the last phase of the Worst Bank Foreclosure Fraud in US History.  To this end, he filed a completely FALSE affidavit attesting to entirely concocted and FRAUDULENT loan defaults, and then proceeded to UNLAWFULLY intercept ALL of Mr. Young's income.  And he KNEW that doing so would prevent Mr. Young from funding cancer treatments for his wife of 24 years, Maria Young, and make it appear that he abandoned her in her time of need.  

Bob Hatley                      David Warren                        Dan Cahill 

The Vast Collateral Damage

Mr. Hoose's 100% FRAUD-based actions have played an instrumental role in causing unimaginable suffering, as follows:

• Maria Young DIED -- Her suffering leading up to her death last year was beyond the pale, and a DIRECT result of the vicious acts of Jim Hoose, who was closely assisted by David Warren and Dan Cahill of Poyner & Spruill, and overseen by Bob Hatley, CEO of Paragon Commercial Bank.
• Leah Krier Had A Nervous Breakdown -- After being rendered homeless in the FRAUDULENT foreclosure of Mr. Young's Meadowmont condominium, Mr. Young's fiancee estranged herself, transmogrified into a felon and kidnapped their son Jackson, whom Mr. Young has not seen since the violent UNLAWFUL eviction on Feb. 2, 2010
• Estrangement by Mr. Young's Adult Sons -- Mr. Young's three now adult sons were deliberately duped into THINKING he abandoned their mother and each of them, when nothing could be further from the truth.

The below videos chronicle just SOME of the aforesaid carnage caused by these extraordinarily EVIL people at Paragon Commercial Bank and Poyner & Spruill:

Maria Young

Leah Krier

Michael, Kevin, Ryan and Jackson Young

With all of this said, keep in mind . . .

These Horrific Transgressions Were Perpetrated By . . .

. . . At the behest of . . .

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

Bank Foreclosure Fraud - Exhibit X - Net Worth Stolen In Grand Larceny

The excerpt below is from Exhibit XI 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 !!

Martin Borden

Below is the Proforma Net Worth of Mr. Young prepared in Spring 2008 and submitted to Martin Borden, his relationship banker at Paragon Commercial Bank. Had Paragon delivered on the Recapitalization as promised – or at the very least, the $250,000 over-collateralized line of credit – Mr. Young would have had the necessary liquidity at the time continue building value at his income producing properties, and avoid the maelstrom of negative credit events that ensued instead . . . and it was all maliciously orchestrated.

As a result of Paragon’s failure to deliver as promised in 2008, and engaging in CRIMINAL FRAUD throughout 2009, what should have been a net worth of $39 million at this point, Paragon’s Machiavellian form of grand larceny threatens to wipe this out completely – and this is by design, pursuant to directives in the cover--up of MorganStanleyGate, which is a “far more significant matter” that “crosses state lines”.

Note:  This net worth was in fact stolen in an audacious grand larceny and the result of  The Worst Bank Foreclosure Fraud in U.S. History