& Their Methods
Who is Involved &
What They Did (Or Didn't Do)
An astonishing element of MorganStanleyGate is the number of prominent individuals (and/or their staff) at well-known institutions, who are directly involved through their actions, or otherwise implicated due to a more than suspicious neglect of their responsibilities or in some cases, an inexcusable lack of responsiveness, which more than suggests sinister intentions -- it reflects a level of corruption that is truly disturbing. And in indicting the institutions and their associated offices does NOT necessarily mean the person(s) heading it up are culpable, it could be the work of an unsavory underling. Notwithstanding, we all know where "the buck stops".
The institutions involved or otherwise implicated include: Banks; Bank Attorneys; Bankruptcy Law Firms; Employment Attorneys; Full Service Law Firms; Judicial / Law Enforcement; Local Newspapers; and Regulatory Organizations. And who they are and what they did (or didn't do) is summarized below.
Morgan Stanley is principally responsible for ALL the transgressions of MorganStanleyGate, which began with the November 2002 employment fraud and subsequent career destruction in New York. It then crossed state lines into North Carolina for reasons explained in the prior section. Through close organizational ties at the executive level, Morgan Stanley engaged the assistance of Wachovia Bank (which later became insolvent and was subsumed by Wells Fargo) and Paragon Commercial Bank to collaborate in the execution of fraudulently orchestrated foreclosures on Mr. Young’s real estate properties in New York and North Carolina. (Note: Morgan Stanley and Wells Fargo were on the brink of collapse in 2008, but bailed out by Congress with $35 billion in taxpayer monies.) The foreclosure fraud described herein and at affiliated websites is an element of the ForeclosureGate that is at an entirely more serious level that that which has gripped the nation . . . for it was deliberate and malicious. It began with Wachovia's knowledge of, and involvement in the commercial sabotage of Mr. Young's North Carolina properties, which commenced in earnest in 2007, most notably at The Courtyard of Chapel Hill ("TCoCH"). They then pursued a multi-pronged course of action, including teaming up with Morgan Stanley to aggressively pursue trying to foreclose on Mr. Young's Manhasset NY residence in 2008 -- despite their over-the-top aggressive efforts, they were thwarted, and the primary mortgage held by Morgan Stanley and 2nd mortgage HELOC loans held by Wachovia were paid in full. Wachovia then prematurely accelerated the mortgage on TCoCH, which up until that time had NEVER been paid late. Wachovia unsuccessfully attempted to sabotage an acquisition of strategic importance, and then reneged on a financing at the 11th hour -- in other words, Mr. Young relied on their assurances that they would timely deliver on their promises, so when they didn't at the last moment, Wachovia orchestrated the PLANNED default. And in lieu of accepting a catch-up payment two months later (as they agreed they would do), they accelerated the TCoCH mortgage, and then aggressively pursued foreclosure with the unlawful assistance of Nelson Mullins (discussed below under "Bank Attorneys"). Wachovia reneged on a host of promises, including: (1) an overall recapitalization; (2) providing a liquidity facility; and (3) financing the acquisition of land parcels and parking lot reconfiguration for valet parking at TCoCH. They even reneged on installing promised ATMs at TCoCH, and The Pit Stop of Durham.
In collaboration with Wachovia, Paragon Commercial Bank similarly reneged on promised financings in order to ensure Mr. Young would: (1) default on the TCoCH mortgage; (2) be unable to resolve a debilitating instance of sabotage at TCoCH (an unlawful parking lot blockade); (3) be unable to complete ANY other redevelopment work; and (4) reneg on the provisions of a Divorce Settlement Agreement, which they agreed to during the negotiations. (Note: Mr. Young's marriage of 24 years could not withstand the chronic stress of MorganStanleyGate). Paragon later engaged in a series of entirely fraudulent foreclosures on Mr. Young's remaining properties, on mortgage loans that were NEVER late, NOT delinquent and in one instance, PAID-IN-FULL, in what may be the most brazen bank foreclosure fraud ever perpetrated on an individual, which was accomplished with the assistance of Poyner & Spruill and an astonishing level of corruption (discussed below).
In other words, ALL the fiscal and family problems Mr. Young encountered, were ALL orchestrated in a Machiavellian manner by Morgan Stanley, Wells Fargo (through its Wachovia subsidiary) and Paragon. And when the surfeit of misdeeds were brought to the attention of the respective Boards of Directors, they took NO ACTION, thereby affirming the unlawful activities -- this WILL eventually prove to be their biggest collective mistake, for it exposes each of these banking institutions . . .there will be no getting around Paragon's Foreclosure Fraud, and the investigations will uncover everything else.
Kirkland & Ellis ("K&E"), on behalf of, and in collaboration with its client, Morgan Stanley have sought to destroy the life and livelihood of Spencer C. Young, so he is unable to pursue his mounting claims -- and how they typically go about doing this is documented at MEVEP.com. K&E's role in MorganStanleyGate has entailed: (1) stonewalling discovery; (2) postponing hearings; (3) paying off Mr. Young's attorneys to NOT prosecute his claims and then abruptly resign when inquiry is made concerning progress to date; (4) paying off NASD arbitrators to orchestrate the dismissal of Mr. Young's case, and (5) and coordinating the direction of attorneys at other law firms to help perpetuate the cover-up of MorganStanleyGate. To obviate detection of payoffs, which was exposed in the Christian Curry scandal, they have arranged compensation through barter. Nelson Mullins ("NM") played a role in MorganStanleygate, as follows: (1) collaboration with Wachovia in the fraudulent foreclosure of The Courtyard of Chapel Hill ("TCoCH"); (2) premature acceleration of the TCoCH mortgage in connection with Lender Liability and tortious interference claims against Wachovia; and (3) denial of due process by preventing Mr. Young from engaging legal counsel.
Employment Law Attorneys in NY
Reflected below is a summary of the behavior of five employment law firms associated with the prosecution of MorganStanleyGate, ranging from enigmatic-to-unethical- to-unlawful.
Liddle & Robinson ("L&R")-- The head of this employment law firm, Jeff Liddle, had a reputation for aggressively prosecuting his cases, which was deemed necessary due to Morgan Stanley's intractable position. Mr. Liddle was engaged to personally handle the prosecution of Mr. Young's case against Morgan Stanley predicated on a 100% contingent fee basis,(i.e., he doesn't get paid unless he wins the case). Mr. Liddle indicated his firm seldom takes on cases under such a fee arrangement; however, he did so due to the overwhelming strength of Mr. Young's case. In addition, two other L&R partners were assigned to the case, along with a senior associate. However, Mr. Liddle agreed to postponement of hearings for as much as 18 months without consulting Mr. Young, failed to complete any substantive pre-trial work, and was unable to provide a scorecard on the status of Morgan Stanley's and Kirkland & Ellis' compliance with Discovery, which was later determined to be 91% unfulfilled. When inquiry was made about the lack of progress, Mr. Liddle abruptly resigned, leaving Mr. Young's case in shambles. It was later learned Mr. Liddle was paid off (via arranged barter of other cases) to NOT prosecute Mr. Young's case. Morelli-Ratner -- This firm successfully represented Christian Curry against Morgan Stanley, and obtained a $52 million settlement. After extensive meetings with David Ratner, he is indicated a strong interest in taking on Mr. Young's case on a 100% contingent fee basis, after Mr. Liddle's inexplicable resignation. However, after a similarly flummoxing delay in officially taking the case, and forwarding an engagement letter, he made NO RESPONSE AT ALL. And it was his delay, which enabled Morgan Stanley and Kirkland & Ellis to insert a new NASD arbitrator to hear the case, and dismiss it for entirely concocted reasons. Information has been received from a proven reliable source that David Ratner was paid off (through case barter arranged by Kirkland & Ellis) to delay long enough to allow the orchestrated dismissal (without prejudice) of Mr. Young's case. Outten & Golden -- This firm successfully represented Allison Schieffelin against Morgan Stanley, and working with the EEOC, obtained a $54 million settlement. Wayne Outten runs this employment law firm, and had long been a neighbor of Mr. Young's, living around the block from Mr. Young's residence in Manhasset, NY. In fact, after some significant snow storms, Mr. Young and his sons had dug Mr. Outten and his family out as a good samaritan gesture. After Jeff Liddle abruptly resigned, Mr. Young contacted Outten & Golden, however, instead of meeting with Wayne, he was directed to meet with Larry Moy, who had declined representation for unspecified reasons -- his prior employment was at Liddle & Robinson. To this day, Mr. Young is perplexed by Mr. Outten's evasive behavior. Boyd Law Group -- Patrick Boyd agreed to take Mr. Young's case on a contingent fee basis after receipt of a $30,000 retainer, with the understanding, he would: (1) personally prosecute the case; and (2) increase the claim amount to $250 million. Mr. Boyd was hired after Morelli-Ratner stonewalled their decision, and shortly after he was hired, the NASD informed Mr. Young that his case had been dismissed. Mr. Boyd and Alan Sklover (see below) filed a request to have the dismissal set aside and suggested a hearing date. The request was rejected for unspecified reasons; however, since the dismissal was "without prejudice", the claim could be refiled, but its like being sent to the back of the line, and would not be adjudicated for another 2-3 years. Boyd abruptly resigned, concocting absurd reasons (e.g., he refused to work with Al Sklover as advisory counsel, as he originally agreed). When Mr. Young reversed the $30,000 retainer payment on his American Express card, Mr. Boyd did not contest it. Information was later received indicating Mr. Boyd was paid-off to resign. Sklover & Donath -- Throughout the process, Al Sklover worked diligently on Mr. Young's case, including: (1) attempting to negotiate an equitable severance; (2) filing Mr. Young's initial NASD claim against Morgan Stanley; (3) drafting employment contracts for Mr. Young's Project Atlas team; (4) serving as advisory counsel, when Liddle & Robinson assumed responsibility for litigating; (5) assisting in engaging replacement counsel when Jeff Liddle abruptly resigned; (6) filing the ethics complaint against Jeff Liddle; (7) serving as advisory counsel after Patrick Boyd was engaged as lead litigating counsel; and (8) assisted in filing the request to have the NASD case dismissal set aside. Notwithstanding, it remains an enigma why Mr. Sklover would not prosecute Mr. Young's case as lead counsel against Morgan Stanley, as he had originally agreed to.
Full Service NC Law Firms
These well-known NC law firms were separately engaged by Mr. Young to handle all legal matters associated with his real estate investments in North Carolina, which were handled with aplomb by Womble Carlyle from 2004 through 2006; however, in 2007, their behavior changed dramatically, and they suddenly refused to pursue some rent collection matters, in stark contradiction to the terms of their engagement -- to wit, to handle ALL legal matters associated with Mr. Young's real estate investments in North Carolina. Womble Carlyle was replaced by Kennedy Covington (“KC”) [which is also known as K&L Gates, and later Shanahan Law Group (“SLG”) to: (1) collect rent arrears; (2) prosecute billing irregularities by property managers; (3) put an end to the false and disparaging articles being published by local newspapers; and (4) prosecute the unlawful parking lot blockade at The Courtyard of Chapel Hill. Once again, pursuant to the directives of Kirkland & Ellis, KC and SLG abruptly resigned just before a critical deadline for entirely concocted reasons, and after having accomplished NOTHING.
Local (Triangle Region) Newspapers in NC
Collectively, the local newspapers of Chapel Hill News, Daily Tar Heel, Herald Sun and The News & Observer, which cover the majority of the readership market in the Triangle Region of North Carolina (vectored by Raleigh, Durham and Chapel Hill) published (at last count) over SIXTY false and disparaging articles on Spencer Young and his NC real estate investments in Chapel Hill, which represented the North Carolina smear campaign launched against Spencer C. Young
However, when Paragon pursued their blatantly fraudulent foreclosures, not a single article came out on it . . . with one noteworthy exception -- an article came out in the Daily Tar Heel in an effort to cover-up Paragon's fraudulent foreclosure on Mr. Young's residential condominium, on a mortgage loan that was: NEVER late, NOT delinquent; and PAID-IN-FULL.
NC Bankruptcy Law Firms
The five firms noted below were engaged by, or had otherwise agreed to represent a subsidiary of Spencer C. Young Investments, Inc., which owned The Courtyard of Chapel Hill "(TCoCH") in a managed DIP Chapter 11 bankruptcy filing that would have: (1) stopped Wachovia’s fraud-based foreclosure actions; (2) initiated criminal investigations of commercial sabotage; and (3) facilitated debtor-in-possession financing, so the planned redevelopment work could be completed at both TCoCH. However, in each case, the law firm resigned or otherwise abruptly declined representation (all within the period of a few weeks of each other), and always at a critical stage, and in a remarkably similar fashion to what the employment law firms in NY had done. These instances of untimely and unethical abandonment (pursuant to Kirkland & Ellis methodology), allowed the foreclosures to proceed uncontested -- this being the case because NC law requires corporations be represented by legal counsel licensed in NC. In addition, more than 50 other NC law firms were contacted and ALL declined representation (they were threatened of unspecified consequences if they took Mr. Young’s case). And when this obvious denial of legal due process was brought to the attention of the NC State Bar, and Bar Association, they were astonishingly unresponsive, which indicates a most disturbing level of corruption, especially when considering the calibre of law firms who had readily represented Mr. Young, including: (1) Cadwalader; (2) Dechert; (3) Ruskin Moscou; and (4) Womble Carlyle. So with these facts in mind, why would every practicing attorney in North Carolina suddenly refuse to represent Mr. Young? Additionally, consider this: In more than two decades of Spencer C. Young having been successfully represented (personally and professionally) by a wide variety of prestigious law firms, NEVER did ANY attorney resign . . . that is, until MorganStanleyGate began. With this in mind, note the behaviors, which all occurred within A TWO MONTH PERIOD. ⇨ Stubbs & Perdue -- At the recommendation of Kieran Shanahan of the Shanahan Law Group (discussed below), Trawick "Buzzy" Stubbs was engaged to file a DIP Chapter 11 bankruptcy petition for the entity which owns The Courtyard of Chapel Hill, extensive meetings and discussions were held in advance of this, and on the deadline date for doing so (to thwart Wachovia's fraudulent foreclosure efforts), he resigned BY EMAIL, and made no phone call. According to NC law, this gave Mr. Young ten days to find a replacement attorney (the "10-day period").
⇨ Higgins Benjamin -- In a lengthy initial phone conversation, Tripp Adams was notably sympathetic to the urgency of having to timely engage counsel to represent SCYII / TCoCH, LLC. At the end of the conversation, he agreed to take the case, and reviewed the principal terms of engagement over the phone, which Mr. Young was agreeable to. He indicated he would immediately follow up their conversation with his engagement letter via email, and meet Mr. Young the following week at the TCoCH property, where they would exchange fully executed copies of the engagement agreement. Despite reminders about sending the engagement letter, he never sent it, saying he didn't have time to (note: this is a boilerplate document which requires a secretary to merely insert the client name and email it out within seconds.) When he met with Mr. Young the following week, his demeanor had changed dramatically, and he tersely said his firm would not be taking the case, and refused to explain: (1) his complete about-face on his earlier assurances and promises; and (2) his waiting for more than a week to deliver the news. This was a stonewalling tactic, where the false assurances were intended to stop Mr. Young from aggressively seeking legal representation. ⇨ Ivey, McClellan, Gatton & Talcott -- Mr. Young had contacted Charles Ivey, explained the matter in great detail, and Mr. Ivey enthusiastically agreed to represent Mr. Young, offering two alternative arrangements: (1) as Lead Bankruptcy Counsel; or (2) as Advisory counsel. He offered the second alternative as a cost effective alternative because of Mr. Young's extensive experience base as Chairman of creditors committees in the bankruptcy filings of others, and Kieran Shanahan's offer to serve as counsel of record. When the meeting was scheduled at his offices in Greensboro to finalize the arrangement, Kieran Shanahan of Shanahan Law Group never showed up (as he agreed to) and Mr. Ivey experienced an astonishing bout of amnesia concerning the second alternative, and demanded an immediate wiring of $50,000 retainer fee to take the case, and an assurance from Mr. Young to turn over operating management of The Courtyard of Chapel Hill to a workout firm with no prior commercial real estate experience
and heed whatever their final recommendations may be. The absurdity of this about-face cannot be overstated, and in reality, Mr. Ivey's behavior basically said "despite my earlier assurances, I do not want to take your case, and if you force me to, I will arrange it so you wished you didn't.
⇨ Nicholls & Crampton -- After scores of phone calls to other corporate bankruptcy attorneys in the Triangle Region of North Carolina, Kevin Sink of Nicholls & Crampton agreed to represent Spencer C. Young Investments/The Courtyard of Chapel Hill LLC ("SCYII / TCoCH, LLC") and file the Chapter 11 Bankruptcy petition to stay (i.e., stop) Wachovia from proceeding with their fraudulent foreclosure on The Courtyard of Chapel Hill. After spending a full day at Nicholls & Crampton on day 3 of the 10-day period, Mr. Sink said he had all the information necessary to file the petition, and expressed how much he looked forward to working with Mr. Young. He made a series of calls and reported the hearing scheduled on Day 10 would be cancelled, as it was moot since N&C would be representative counsel. On day 8 of the 10-day period, Mr. Sink called Mr. Young to say he's been directed by Sidney Aldridge (a senior partner at his firm) to resign from the case because of a "conflict with Banks Hunter of Hunter & Associates" (former property manager, who abruptly resigned when inquiry was made about noted billing irregularities). This directly contradicted their discussion when they met, and had mutually concluded there was no conflict. He then indicated he had contacted James Angell of Howard Stallings, From & Hutson (see below), who agreed to serve as representative counsel, and was willing to meet with Mr. Young the following day (the day before the 10-day deadline). ⇨ Howard, Stallings, From & Hutson -- As was the case throughout the MorganStanleyGate scandal, unethical attorney behavior, resulting from extensive corrupt influence placed Mr. Young in a highly compromised position and with a deadline looming, leaving him no other choice but to "accept the hand he was dealt from an obviously crooked deck". Mr. Young met with James Angell, who demanded $50,000 be wired the following morning before the hearing, or he would not show -- now remember this was the hearing that Kevin Sink had said was cancelled. At the hearing, the judge assigned (Catherine Caruthers) spent the entire time admonishing Mr. Young for not having certain forms filed in advance of the hearing. Now these were the forms Stubbs & Perdue said they were preparing, yet failed to do so, and which Nicholls & Crampton said they would be filing, and also failed to do so, and before a hearing that was supposed to have been cancelled). The staging of this was profoundly obvious, even more astonishing was that James Angell remained silent the entire time. After she completed her outlandish and unreasonable histrionics, Caruthers then focused on the fee wired to Howard Stallings, oddly instructing James Angell to conduct an audit to ensure the monies were not paid by the entity that filed the Chapter 11 managed bankruptcy. Mr. Angell never bothered to explain why this was important; however, the monies were sourced by other means, and overwhelming evidence was supplied to Mr. Angell. Caruthers set a hearing date for Mr. Angell to report back about the source of the funds, and to have the now past due documents completed. Rather than focusing on the strategy to develop a reorganization plan and emerge from bankruptcy, Mr. Angell kept suggesting he was not convinced about the source of funds (remember, Mr. Young is a CPA, and had already provided such evidence). On the night before the hearing Mr. Angell said he was going to resign and told Mr. Young there was change in venue for the hearing. Mr. Angell gave Mr. Young a bogus address, and was oddly unreachable by phone -- and by the time Mr. Young learned of where the hearing was actually held, the "case" was heard, Mr. Angell resigned and Judge Caruthers dismissed the case -- Caruthers refused to see Mr. Young about this obviously staged dismissal. This allowed Wachovia to proceed uncontested with their fraudulent foreclosure. The whole thing was entirely orchestrated.
Judicial / Law Enforcement
Although provided details of obvious criminal behavior (which they agreed warranted investigation when first apprised), and in some instances, included extensive meetings and lengthy phone calls, there was oddly NO action taken whatsoever to investigate.
In the numerous communications with the FBI (Raleigh and Charlotte offices) and NC State Bureau of Investigation (SBI), the agents who initially worked on the cases promised prompt action, and in each case, the agent was mysteriously “reassigned” and the replacement did absolutely NOTHING further, and failed to return phone calls.
The DAs contacted in both NY and NC were ALL completely non-responsive, and the Orange County Sheriff may perhaps be the most corrupt organization of law enforcement since the Los Angeles Police Dept in the 1920’s, as depicted in the Clint Eastwood directed movie,Changling, starring Angelina Jolie.
And the judges involved in the foreclosure proceedings held “kangaroo court” hearings, allowing for the fraudulent foreclosures to proceed uncontested, despite being apprised that Mr. Young was being unlawfully denied legal representation.
Not one elected public official responded to the many pleas for help in combating the litany of misdeeds and unlawful acts described above that was reported to them in exceptional detail. In some instances, it was as though all such communications to them were intercepted, because they did to not respond in any way, shape or form. If pervasive corruption were not involved, this would suggest across-the-board gross incompetence in the discharge of the responsibilities to constituents by ALL senior political officials in North Carolina – which is simply NOT plausible.
There was an across the board lack of responsiveness to the complaints filed with these organizations. The filings were very specific in their allegations and those responsible, and all were accompanied by cogently compiled and carefully documented evidence.
And those organizations which did actually respond (sometimes delaying a response for as long as nine months), it was an insultingly vacuous dismissal, with no reasons provided. The more egregious and obviously corruption-laden instances included: (1) the NASD, which has since been replaced by FINRA (Financial Institution Regulatory Authority); (2) the NC Bar Association; (3) NY State Disciplinary Commission; and (4) the NYS Commission on Judicial Conduct.