The Sterling National Bank Complaint And New Investigations By The FDIC & NYDFS Could Shatter Merger With Hudson Valley Bank
Last week, I wrote about how a Sterling National Bank complaint has led the FDIC and the U.S. Treasury’s Office of the Comptroller of the Currency (OCC) to launch investigations into the treatment of Sterling National Bank customer Bill Youngblood.
On Friday, MFI-Miami confirmed that not only are the FDIC and the OCC investigating Sterling National Bank‘s treatment of Bill Youngblood. Now the New York Department of Financial Services (NYDFS) has launched its own investigation. Everyone is aghast at the mob style treatment of Bill Youngblood.
The complaints filed with the FDIC, OCC and NYDFS allege that an employee of Provident Bank (which has since merged with Sterling National Bank) under the supervision of AVP Dino Saracino improperly withdrew money out of Bill Youngblood’s accounts. Saracino 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. This cost Youngblood thousands of dollars in NSF fees. Sterling National Bank appears to have done this to reap thousands of dollars in NSF fees.
Soon after, Bill Youngblood began negotiating with Provident Bank to modify the first and second residential mortgages. Meanwhile, he was renegotiating a refinance of his loan on his commercial property in Harriman, New York.
Sterling National Bank Complaint Details Deception and Double Deal Done By Bank
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 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. Youngblood asked for term sheets or a copy of the new mortgage and note in return. 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.
In November 2014, Sterling National Bank and Hudson Valley Bank agreed to merge. However the merger is pending shareholder approval. It had been expected to be finalized by June 1, 2015. However, the investigations could delay the merger. It could shatter it all together.