Bait & Switch Tactics and Liquidation Of Accounts By Sterling National Bank Are The Everyday Practices Of This “Community” Bank
“I have been in the financial arena a long time and I have never witnessed a bank as incompetently run as Sterling National Bank. The Youngblood case is a perfect example of this. Sterling National Bank holds $1.1 million debt on the two properties owned by Youngblood that are worth $650,000 in the current market. Yet, senior management at Sterling National Bank is hell bent on foreclosing and taking a $450,000 loss on Youngblood’s properties. Any banker with a half a brain would attempt to renegotiate the debt to minimalize the loss and would foreclose only as a last resort.” -MFI-Miami CEO Steve Dibert
(New York, NY) Steve Dibert, CEO of the internationally recognized mortgage fraud investigation company, MFI-Miami, LLC called on the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency to fast track their investigations of Sterling National Bank (FDIC Certificate #30337) in Montebello, New York that were triggered by complaints filed by Sterling National Bank customer Bill Youngblood.
The complaints filed with the FDIC and OCC allege that an employee of Provident Bank (which has since merged with Sterling National Bank) under the supervision of Assistant Vice President, Dino Saracino improperly withdrew money out of the corporate business accounts of Bill Youngblood and then applied the funds to his residential mortgage without his knowledge or consent. This action by Sterling National Bank caused dozens of checks written by Youngblood to bounce costing Youngblood thousands of dollars in NSF fees. It appears SNB did this for the sole purpose of reaping thousands of dollars in NSF fees from Youngblood.
Soon after this unauthorized transfer of funds by Provident, Bill Youngblood began negotiating with Provident Bank to modify the first and second mortgages on his residence while renegotiating a refinance of his loan on his commercial property in Harriman, New York.
The complaints also allege that in July 2013, after nearly 24 months of negotiating a loan modification and continual assurances by Dino Saracino that there was a deal close at hand, Provident, without notifying Youngblood, hired Blustein, Shapiro, Rich & Barone, LLP to foreclose and thus begin the illegal process known as “Dual Tracking” on both properties
In October of 2013, MFI-Miami was hired by Bill Youngblood to review the file for fraudulent activity. MFI-Miami then requested a payment history on all three loans which Provident and Sterling National Bank. After nearly18 months, Sterling National Bank has still refused to supply these documents in violation of federal law.
Steve Dibert explains Sterling National Bank’s refusal to supplying documents,
“The only time banks or lenders blatantly violate federal law by refusing to give MFI-Miami or my clients their documents and payment history is when the bank or lender has something to hide.”
In April, 2014, Saracino now working for Sterling National Bank informed Youngblood that they would modify the commercial loan if he deposited $20,000 into a Sterling National Bank account. When Youngblood asked for term sheets or a copy of the new mortgage and note, Saracino refused and demanded the $20,000 be deposited first.
In February of this year, Youngblood thought he had finally put this ugliness behind him when attorneys from Blustein, Shapiro, Rich & Barone, LLP agreed to settle the foreclosure action if Youngblood gave them $100,000.
After receiving a certified check for $100,000 from Youngblood’s attorney, Sterling National Bank’s attorneys, Blustein, Shapiro, Rich & Barone, LLP informed Youngblood that Sterling National Bank had changed their mind and wanted to continue with litigation and keep the $100,000. Youngblood and Stutman demanded the check be returned.
Steve Dibert was recently quoted as saying,
“I have been in the financial arena a long time and I have never witnessed a bank as incompetently run as Sterling National Bank. The Youngblood case is a perfect example of this. Sterling National Bank holds $1.1 million debt on the two properties owned by Youngblood that are worth $650,000 in the current market. Yet, senior management at Sterling National Bank is hell bent on foreclosing and taking a $450,000 loss on Youngblood’s properties. Any banker with a half a brain would attempt to renegotiate the debt to minimalize the loss and would foreclose only as a last resort.”
How To File A Complaint With Federal Agencies About Sterling National Bank
If you’re unhappy with Sterling National Bank, the federal government gives you two ways to file a complaint. Bank costumers can either file a complaint with the FDIC or with the Office of the Comptroller of the Currency or OCC, a division of the U.S. Department of Treasury.
An FDIC complaint is great because if Sterling National Bank decides they want to expand their branch network they need to get approval from the FDIC.
The FDIC uses consumer feedback as a basis for it’s approval. If the FDIC has stack of complaints from people in the community the bank serves, the FDIC will deny the bank’s request for expansion.
The FDIC will usually acknowledge receipt of a complaint letter within a few days. If the letter is referred to another agency, the consumer will be advised of this fact. When the appropriate agency investigates the complaint the financial institution may be given a copy of the complaint letter.
The complaint should be submitted in writing and should include the following:
- Complainant’s name, address, telephone number;
- The institution’s name and address;
- Type of account involved in the complaint–checking, savings, or loan–and account numbers, if applicable;
- Description of the complaint, including specific dates and the institution’s actions (copies of pertinent information or correspondence are also helpful);
- Date of contact and the names of individuals contacted at the institution with their responses;
- Complainant’s signature and the date the complaint is being submitted to the regulatory agency.
The regulatory agencies will be able to help resolve the complaint if the financial institution has violated a banking law or regulation. They may not be able to help where the consumer is not satisfied with an institutions’s policy or practices, even though no law or regulation was violated. Additionally, the regulatory agencies do not resolve factual or most contractual disputes.
Complaints to the FDIC should be mailed to:
Federal Financial Institutions Examination Council 2100 Pennsylvania Ave, NW Suite 200 Washington, DC 20037
You can also file a complaint with the Office of the Comptroller of the Currency or OCC, a division of the U.S. Department of Treasury. OCC is charted by congress to regulate and monitor banks that are chartered by the federal government like Sterling National Bank. The OCC website is actually very consumer friendly and walks you through the complaint process. You can check it out at https://appsec.helpwithmybank.gov/olcc_form/