In The Beginning . . .

Locales of a Perfect Storm

The Offenders & Their Methods

Their Underlying Intent

The Aftermath


Still I Rise


Next ?



In The Beginning . . .


In The Beginning . . .

When & How It All Began

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Initial Fraud in November 2002

Mr. Young was surreptitiously included in a firm-wide downsizing on November 20, 2002, predicated on a fraud discrediting his significant accomplishments, which was orchestrated by two of his colleagues at Morgan Stanley (Warren Friend and John Westerfield), and assisted by a third (Tony Tufariello).

The fraud was especially profound because Mr. Young had perhaps his best year ever, having created the highly successful IQ® franchise, and completed a unique farm loan monetization for AXA Financial, earning the largest investment banking fee for his group that year --  for it was also the largest transaction of its kind.  

However, instead of receiving a promised “outsized bonus”, promotion and additional investment banking responsibilities (marketing all securitized products to middle market banks across the U.S.), he received 15 minutes to gather his belongings and leave Morgan Stanley’s Times Square headquarters, and was asked never to return.

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Job Offers Mysteriously Disappear

Notwithstanding his being defrauded in such a diabolical manner, Mr. Young sought to amicably work out a fair severance; however, Morgan Stanley rebuffed all such overtures.  Moreover, the job offers he had subsequently lined up (e.g., Goldman Sachs, JPMorgan Chase) mysteriously disappeared.

And what began as overwhelming interest in hiring Mr. Young by rival Wall Street firms, dissipated to one big industry-wide cold shoulder. 

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Project Atlas

Undaunted, Mr. Young formed a team of senior executives to launch an integrated real estate finance, banking and investment operation, which notably included many of the client executives who were instrumental in establishing the IQ® franchise.  These were the decision makers at the client financial institutions who contributed (for a share of the profits) “institutional quality” commercial mortgages (i.e., low leverage mortgages collateralized by attractive, well-located and prudently managed income producing properties) which were aggregated, underwritten and securitized by Morgan Stanley in transaction sizes typically ranging from $500 million to $1 billion.

Mr. Young’s business initiative was coined Project Atlas and was featured in a front page story in Commercial Mortgage Alert, the leading trade publication of the CMBS industry.

Merchant Banking Thwarted

Once again, keen market interest and associated job offers (e.g., from Barclays, and Allied Capital) for Mr. Young and his Project Atlas team came and went in a similarly abrupt and mysterious fashion. – in fact, for Allied Capital, they were at the stage of negotiating the contracts for the various senior managers of Mr. Young’s team of executives, when they abruptly terminated all communications.

He learned from friends at the firms who had revoked their offers that Morgan Stanley was responsible, which manifested in the following manner:

 Defame & Discredit Mr. Young and his accomplishments through a CMBS industry-wide word-of-mouth smear campaign, and if necessary . . .
Threaten Economic Sanctions (communicated at a senior executive level), such as exclusion from various fixed income syndications, in the event they were to hire Mr. Young.  

These actions are not only unconscionable, they are illegal.

IMPORTANT NOTE:  The CMBS industry is not to be confused with, nor has any connection to, the sub-prime residential mortgage-backed securities industry, where fraud, excessive greed and gross mismanagement of credit risk throughout this particular industry nearly brought the U.S. economy to its knees in 2008, and the effects from which we will suffer for years to come.  And two of the three people (John Westerfield and Tony Tufariello) who were primarily responsible for causing MorganStanleyGate, also played instrumental roles in the sub-prime mortgage crisis, while regularly pulling down bonuses of $5 million to $10 million a year.