Serene Creek Run Riding Center
SCRRC.......PO Box 7, Goode VA 24556 540-816-9905 email@example.com
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SERENE CREEK WELCOMES YOU AND YOUR FAMILY.
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Serene Creek Run Riding Center
Hay for Sale by SCRRC
Jumping Horses For Sale
Horses For Sale
Directions: From Bedford or Forest: 221 to Perrowville Rd, turn onto Hooper Rd at the light, turn L onto Cottontown Rd, pass Autumn Run housing division, 4th driveway on L (5040 Cottontown Rd black mailbox), IF YOU GO TO RILEY RUN STABLES YOU HAVE GONE TOO FAR. TURN AROUND GO BACK TO 5040 COTTONTOWN RD follow driveway to the SPLIT, take it to the left past the cars and trailers and go around back to the barn. Park along fence line. Clients follow the SereneEquestrianCenter facebook sight for event list and special events.
Professional training, instruction and equine management allow for a safe and memorable experience at the Serene Creek Run Equestrian Center.
One day at a time or for weeks on end. Call and set up a appointment
5040 Cottontown Rd
(if you go to Riley Run Rd, you've gone too far)
Forest, VA 24551
****COLLEGE DISCOUNTS ****
4 lessons $260.00
5 lessons $325.00
Birthday Parties $150.00
Horse Sales $5000.00, $10,000.00, $15,000.00
(pay in full with individual $5000.00 payments)
ORDER PHOTOS http://serenecreekrunridingcenter.photoreflect.com
Student lesson, leasing and family packages available!
Riding lessons available to absolute beginners and experienced riders of all disiplines. Pleasure, show and performance levels. Covering all the complicated terms and grey areas that no-one can understand to the simplest things. Beginner Western riders learn the basics working the horses topline and balance at the jog and extended jog while working in transitions back and forth. Beginner English riders learn the basics up to shoulders in, half pass and jumping position. Students packages include 4 lessons per month with FREE daily practices.
GET BACK IN THE SADDLE OR IMPROVE YOUR RIDING SKILLS.
Lease horses are available for the entire family to enjoy! On the trails or at the show! All horses are professionally trained. You will fall in love with the SCR horses! Our horses are available for sale to qualified buyers.
SHOW SEASON IS COMING!!! LEASING AVAILABLE
VIRGINIA GENERAL ASSEMBLY HOUSE ETHICS PANEL The Complaint of Crystal VL Rivers Complainant, ETHICS COMPLAINT Against E. JOSEPH FACE, JR - COMMISSIONER OF FINANCIAL INSTITUTIONS JAMES C DIMITRI – COMMISSIONER OF STATE CORPORATION COMMISSION T. RANN PAYANTER – EXECUTIVE VP, VIRGINIA BANKERS ASSOCIATION T. SCOTT GARRETT – VIRGINIA HOUSE DELEGATE, 23rd DISTRICT C. PATRICK HOGEBOOM, III – ASSISTANT U.S. ATTORNEY, VIRGINIA Respondent, 1. Crystal VL Rivers, brings this Ethics Complaint against E. Joseph Face, Commissioner of Financial Institutions, Jr, James C Dimitri, Commissioner of State Corporation Commission, T. Rann Payanter, Executive VP, Virginia Bankers Association, T. Scott Garrett, Virginia House Delegate, 23rd District, and C. Patrick Hogeboom, III, Assistant US Attorney, for making misrepresentations, in that, Rivermont Banking Company was in compliance, and to cover up actions by John L Wynne, Former President and CEO, Rivermont Banking Company and Rivermont Consultants, whereby neither Respondent did, in fact, impose, enter judgment for , and enforce by their process, a civil penalty or remove from office the director and officer of the illegal bank, Rivermont for its egregious violations to the Codes of Virginia, in accordance with the Commission’s Rules; allowing Wynne to operate Rivermont, in the State of Virginia and advertise Rivermont throughout the United States of America. Introduction 2. On or about March 1, 2011 – Suz Schiefer, Karen Foster and I drove to Richmond from Lynchburg, Virginia to meet with Locke Trigg at the Bureau of Financial Institutions to discuss how or if the Bureau could help us. I had recently learned that I and several other residents of Virginia and South Carolina had been conned by John L Wynne who held himself out as the President of Rivermont Banking Company. I had been helping the Virginia State Police in finding other victims and now was attempting to find out why the Commonwealth Attorneys’ Office couldn’t help us and why the State Corporation Commission and the Bureau were allowing this financial predator to operate illegally as a bank and steal our equity. The Commonwealth Attorneys, Doucette of Lynchburg and Krantz and Robinette of Bedford, Commonwealth investigator, Eugene Wingfield of Lynchburg, the Lynchburg FBI, Mary Lou Prilliman of the Criminal Division of the IRS, Roanoke, and Pat Hogeboom of the US Attorney’s office were all very familiar with John L Wynne. EXHIBIT 1 3. In an attempt to resolve this ridiculous circle of being told Wynne was a “money launderer and had been for a long time, a washer, the go to guy, and that there was no attorney or Judge in this State that would take my case against Wynne. He’s been operating for many years and we can’t catch him, the only way to catch him is to file a federal case against him”, we sat down with Trigg and told him our story. He was familiar with it and other victims’ complaints against Wynne and Rivermont. He told us, “The Bureau had been watching Wynne for a while now, and we’re not ready to do anything yet!” To say that I was taken back is a understatement! I had done what research I could on a subject I knew very little about and proceeded to quote VA Codes 6.2-800, 803, 804, 807, 814, 816, 865, 868, 882, 906, 938, 939, 946, 13.1-620, and 630 to Trigg while he wrote them down. Even Judith Jessee, from Attorney General, Ken Cuccinelli’s office had written us letters confirming the Class 6 Felony that Wynne was in violation of and that we should report him to the Commonwealth Attorney’s office. We were thanked and told to Contact the Commonwealth Attorney’s Office and keep him informed if anything came up. EXHIBIT 1 A 4. After more outcry, research, and thousands of dollars in attorneys fees and filings, I have been put off by my State Delegate, Scott T Garrett, both Bedford County Commonwealth Attorneys, and the US Assistant Attorney Pat Hogeboom. I have subpoenaed and found evidence proving that there was, in fact, a dialogue between Rann Paytner of the Virginia Bankers Association, the Commissioner of Revenue, Joe Face and John L Wynne. I have received letters from the Bureau of Financial Institutions informing me that Wynne had complied with the Bureau, however, Wynne continued to advertise and operate a illegal bank without changing the Articles of Incorporation as per the letters sent to Wynne reminding him that he was not nor had ever been authorized or certified to transact business as a bank!! The Bureau was well aware of it, and the Commissioner of the State Corporation, James C Dimitri found the accompanying articles submitted on behalf of Rivermont Consultants Inc (formerly Rivermont Banking Company) complied with the requirements of law, and confirms payment of all required fees. Therefore, it was ORDERED that the CERTIFICATE OF AMENDMENT be issued and admitted to record with the articles of amendment in the Office of the Clerk of the Commission, effective July 26, 2011. The corporation was granted the authority conferred on it by law in accordance with the articles, subject to the conditions and restrictions imposed by law, and it was signed by the State Corporation Commission Commissioner, James C Dimitri. Even after these agencies received streams of calls from victims and myself regarding the illegal banking enterprise, they still continued to represent that they were aware of the issue but there was nothing they could do. They would say “CIVIL MATTER,” I would say, “CRIME”. EXHIBIT 3-4 5. THE WORST, THE MOST UNCONSTITUTIONAL, DISPICABLE, MOST CORRUPT, NEGLANT, ABETTING VIOLATION, TO DATE, IS MY STATE DELEGATE LIED TO ME, ANOTHER VICTIM AND A MEMBER OF THE TEA PARTY WHEN ASKED IF HE KNEW JOHN L WYNNE OR HAD EVER HEARD OF RIVERMONT BANKING COMPANY OR 1650 PARTNERS. 6. On May 1, 2011 - I had been contacted by another victim that knew a member of the Lynchburg Tea Party whom she thought might be able to help us get the, Lynchburg and Bedford, illegal banking and scamming issue heard in Richmond. She introduced me to Steven Troxel who agreed to introduce us to our State Delegate, Scott Garrett at a Tea Party meeting being held at Liberty University, to discuss our communities’ issues. We went to the meeting. It was my first political meeting, as I am not familiar with politics in general, and we waited until the meeting was over to be introduced to Scott Garrett. We were standing together in a group and Steven introduced us. (I had learned to ask each and every person that I talked to about this issue, if they knew or were aware of John L Wynne, Rivermont Banking Co, 1650 Partners or their members before discussing it with them. So I did. To which he replied, “No, I don’t know him. No not aware of them”. I asked him, “Are you sure?”. He said, “Isn’t he that banker?” I said, “Yea, you know him?” He said, “No, I don’t know him”. We proceeded to go into depth about all of what happened to us, the predatory lending, the insurance fraud, the forgery, how we were victimized, how much we had lost and were losing, how bad it was for the community, there was no agency to protect the anyone with this problem, we couldn’t get attorneys, everyone was protecting him, etc, etc, etc. He told us he didn’t know anything about banking or finance. I looked at him and said, “So how are you going to help us?” To which he replied, “ Oh, I’ll contact Cuccinellis’ office and have them look into the matter.” I left that meeting believing that my State Delegate, Scott Garrett, did not know who the bad guy was or the entities that I named that he was using as a illegal enterprise. He knew we had gone to the Bureau, the AG’s Office, the FBI, the Justice Dept, the IRS, and the Commonwealth Attorneys’ Office. He also knew, from that conversation, that Wynne and Rivermont were being investigated by the VA State Police. He knew because I made sure he knew the truth and understood what was going on in Lynchburg, Bedford, the State of Virginia and the State of South Carolina. I WOULD LIKE TO KNOW WHO HE CONTACTED WITHIN 72 HRS AFTER THAT INITIAL MEETING WITH US. EXHIBIT 2 7. As further detailed in the following BACKGROUND/TIMELINE, you will read and understand how the truth was disparaged in order to cover up Wynne’s illegal actions and to protect the Respondents’ positions and Garrett’s own banking interests in Virginia banks as either a non-director or organizing director. His banking concerns are, in fact, with banks (Select Bank and Highlands Community Bank and former Community First Bank) that are organized and operated by men who are, in fact, associates, partners, and former employees of Wynne’s Community First Bank and Mainstreet Bank. Research has proven that Garrett not only knows about banking but he sat on the #2 Finance Subcommittee from 2010 to 2013. He has known Wynne since before the Organizing of Community First Bank in 1998. He had 7400 recorded shares with CFB on 6/6/1999. He served as an organizing director of Community First Bank (1999-2006) along with Walter G Mason, Michael Thomas and Wynne. After President of Community First Bank, Wynne’s HIT and Run/DUI the bank merged with American National Bank. Garrett, along with Mason, Thomas, Beach (names I had asked Garrett about in our initial meeting) all organized Select Bank in Forest Virginia November 2006. Garrett, now a director of Select Bank, had 25,000 shares. WE NOW KNOW THAT GARRETT IS VERY FAMILIAR WITH BANKING AND FINANCE AND WYNNE. HE HAS KNOWN THESE SAME MEN SINCE BEFORE CFFC/CFB OPENED. EXHIBIT 5 8. When Wynne got his DUI/Hit and Run in 2005, the bottom dropped out from under everyone involved with CFB. Wynne, Mason, Thomas, Beach, Garrett and others had all invested in the bank. Their families and trusts. Some had Executive positions with CFB. CFB had just gone public in 2004. Wynne had a empire of three banks and the parent company, Community First Financial Corp. He had organized Highlands Community Bank and was a director. The incident had to be put off with the county until Wynne could re structure. They couldn’t let the public find out about the DUI/Hit and Run. In April 2006 American National Bank agreed to merge/acquire CFB and a group of directors and investors planned their new bank, Select Bank. 1650 and BMTW had been approved by the Federal Reserve Bank, Richmond in 2004 to own all voting shares of CFF/CFB. Thomas, Mason and Wynne were 1650. Beach, Mason, Thomas and Wynne were BMTW. THE BUREAU KNEW, GARRETT KNEW, THE VBA KNEW WHO WAS WHO WITH CFFC/CFB AND 1650 AND BMTW. 9. If everyone involved or who owned stock or even had a bank account with CFB , knew the truth they might decide to invest or bank elsewhere. I now know and I firmly believe that each and every Respondent chose to throw me and my company under the bus because of their bigger problem, they don’t want the truth to get out. They don’t want to the public to find out. 10. My company, CVLR Performance Horses, Inc and I need to be able to find a attorney to take our remaining case to Federal Court. We need a financier or a bank that is ready willing and able to back our project, but we can’t find either. This nightmare is a virus. The director and shareholder lists for CFB are as thick as a State of Virginia phonebook. To point to the experience and victimization is not enough. This complaint points to the facts. All parties to this complaint clearly violated their position of authority. Instead of doing their duties properly, the Respondents chose to “sweep the facts, victims complaints, and truth under the rug”, whereby allowing Wynne, his illegal enterprise and his friends and co harts to continue to victimize the good people of the State of Virginia and South Carolina. Allowing Wynne to continue to operate and advertise only motivated the crimes and essentially gave Wynne “the keys to the city of Lynchburg and Bedford”. Now that the Federal RICO/Racketeering case has gone international, people have a idea of the scam and its reader friendly but there is not anything, ANY AGENCY, in place that could protect anyone against a financial predator, like Wynne, right now in the State of Virginia. If the Commonwealth says the Bureau has a investigation, and the Bureau allows the illegal bank to operate in Virginia as a bank in good standing with the SCC, and the VBA continues to allow the illegal bank to advertise and insure the illegal banker employee, and the US Attorney’s office continues to investigate but doesn’t indict, your where I was the day I found out that I didn’t own my property and the Bureau wasn’t ready to do anything yet, and the FBI had been watching Wynne for a long time, and THOSE ARE CRIMES COMMITTED; GO TO YOUR COMMONWEALTH ATTORNIES OFFICE. 11. I do not believe, when I spoke with Trigg, the Paytner, Judith Jessee, Hogeboom and Garrett, that they thought about my family or the victims’ families, my business or theirs, my clients or theirs, and our client’s families or the good people of the State of Virginia. They couldn’t see our property, its equity, or the money paid out to purchase it. They didn’t see my equestrian subdivision project parameters. They didn’t see our future or our past. They just listened and decided that Wynne’s illegal enterprise and the banks he provided services to were more important to the community and the State than all of the good people of the State of Virginia. 12. What is the disciplinary action for a Commissioner or representative of the State of Virginia that aids and abets and allows and insures a person operating a illegal bank and or a illegal enterprise? 13. This is not an isolated incident. The deceptive action needs to be charged as a felony to anyone that covers up illegal banking practices or illegal enterprises. This financial predator con game is a virus and is ramped. If you continue to protect men like Wynne. Now the precedence has been set on how to commit the crime and keep up the good work not only in the towns and cities but the State. I make these allegations with reluctance. With over 5 years of research, struggling, screaming out, suing, paying out, cooperating with agencies, I am reluctant to challenge the Respondents. I am also reluctant to enter the spotlight, knowing that my actions will be viewed critically, and in hindsight. But given the facts, I must prevail. I must defend my name and the good people of the State of Virginia from unjustified actions of the Respondents’. I have to bring the focus where it belongs, the people governed by the Virginia General Assembly have a sworn in position and an job and responsibility to protect and serve the good people of the State of Virginia. I am a mother of three children, 26, 21, and 15. I came to Va from the Dallas Ft worth TX area in 2002. I have been a horse trainer and had my own businesses since 1977. I am FL, TX, VA, MN trained Domestic Violence Advocate. I own my own farm equipment. I grow and cut and sell hay throughout the State of Virginia and South Carolina, North Carolina, Georgia, Alabama, etc. I’m a farmer in the State of Virginia. I am a certified paralegal. I have trained to be a private investigator. I have proved the scam and the illegality. I was able to finally realize my dream of owning my own land and building my Commercial Equestrian Center. Because of the failure of the Respondents to keep this illegal enterprise off the streets of Virginia and out of the Banks in Virginia, I lost everything. I can tell you that this scam could not be realized if the "Rouges Gallery of Respondents" hadn't turned their blind eye and dropped the ball. I have sat round kitchen tables with people and viewed closing documents and court house recorded documents that have Rivermont Banking Co on them and they have no clue as to why or even who they are. (DP Funder scam) Personally, I had never sat in at a closing before mine on November 20, 2007. As far as I know, to date, there is no policy to safeguard VA residents against the negligent mistakes and cover up by any one of the Respondents. I challenge you to put that bar of ethics. The issue needs to be reviewed and taken seriously. Having a ongoing investigation doesn't do the victims any good, it only protects the "good ole boys" and buys them more time to perfect the illegal enterprise. Somebody owes me and my company a Commercial Equestrian Center and financial damages that I have suffered. Somebody owes each and every victim of this illegal enterprise their property, homes and businesses and the financial damages they have suffered or will suffer when they wake up one morning to realize they don't own their property or that their financier is a con artist and the Respondents gave him the keys to their State and Community. It's called "COLLUSION". Plain and simple. I think a Special Prosecutor and adding or amending VIRGINIA ACTS OF ASSEMBLY in the 2015 SESSION could be a start. I want copies of each and every investigative report from the Respondents regarding John L Wynne, Southgate Leigh Wynne Trust, Rivermont Banking Co, 1650 Partners and CVLR Performance It’s worse than a plague. The illegal activity is in our Virginia Banks that allows and receives hand written financial statements which include property and assets that Wynne, Rivermont, 1650 and SGLWT don’t own or lease and the value of these properties and assets are grossly inflated. The banks don’t do any due diligence because Wynne poses as a banker bringing new business to the bank. He is able to open business checking accounts with fraud induced Articles of Incorporation. The wheels start rolling, turning money in and out, assets in and out, grabbing a victim or two, subordinate deed of trust or two, credit lines using victims assets, on and on and on it goes. I write this complaint, not as a third party, but as a victim. I won’t apologize if it reads like blah, blah, blah! That’s the reality of it. You go to sleep with it, you wake up with it, and you spend all day worrying about it. I get calls from victims threatening to kill themselves. Calls from victims that are losing their homes and having to be evicted knowing what illegalities are going on and they can’t do anything. They do what everyone does, file bankruptcy to try and save their property hoping the court will understand the crime. I will be glad to testify at any public hearing that you want to schedule. I may never hear from you or receive a result but I will always remember when Judge Ballou, Roanoke, told me, while I was sobbing profusely on the phone, “Crystal, you’ve done everything you could for you and the victims. You have to let the agencies do their job.” That was in February 2014. 14. By misrepresenting the facts and circumstances surrounding the handling of the victims complaints and suffering, the facts that arise from John L Wynne operating a illegal banking enterprise and committing insurance fraud in the State of Virginia, the Respondents failed to assure that representations made in their name are accurate, have made false statements, in that, Wynne has complied, and have attempted to conceal material facts. They have made these misrepresentations and falsities in order to protect their careers and Garrett his political career and investments and the careers and investments of 1650 Partners LLC, Rivermont Banking Co and Wynne. 15. I WOULD LIKE TO SEE THE REACTION FROM THE RESPONDENTS WHEN AND IF WYNNE WAS TO EVER LOOK THEM IN THE EYES AND TELLS THEM WHAT HE TOLD ME, “YES I DID IT, THEY’LL (BANKS, ATTORNEYS, TITLE COMPANIES, DMV INVESTIGATORS, REALTORS, INSURANCE AGENTS) DO WHAT EVER I TELL THEM!! YEA WELL, IT DIDN’T HURT YOU, DID IT?!? AND YES, I HAVE THAT ON AUDIO AND IT’S TRANSCRIBED AND THE VA STATE POLICE HAVE A COPY. Background Facts 1. In late October 1998, John Wynne formed Community First Bank (in organization) (CFB), working on all aspects of developing a new bank including but not limited to composition of the Board of Directors, raising necessary capital, assembling management team, charter applications, budgets, policies, procedures, site location, etc. Wynne had over 25 years banking when he began organizing the CFFC and CFB project. Wynne’s employment contract protected him from being fired or let go as a board member and director of the bank with no way to vote him out unless he committed a felonious crime. 2. On May 3, 1999 Community First Financial Corp (CFF) filed application with the Commonwealth of Virginia State Corporation Commission to for authorization to operate Community First Bank (CFB) as a Bank in the State of Virginia and begin business. 3. Robert T Beach, a well known investor and friend of Wynne’s, was named as a director of CFB on Schedule III Information in Support of Application and listed him as having 40,000 shares paying $80,000 cash. 4. Walter G Mason, a friend of Wynne’s, was named as a non-director of CFB having 8,000 shares paying $16,000 cash 5. James Michael Thomas, a friend of Wynne’s was named as a non-director of CFB having 5000 shares paying $10,000 cash 6. Wynne was named President and CEO and Principal and organizing director of CFB having 12, 500 shares paying $25,000 cash. His start date salary was $100,000 per year 7. Wynne also, with his brother and the family Southgate Leigh Wynne Testamentary Trust received another 17,500 shares paying $35,000 in cash for CFB shares. 8. The May 3, 1999 attachments to the application also included the CFF Feasibility Analysis of Prospects and Public Need for a new Locally Owned Independent State-Chartered Commercial Bank in Lynchburg, VA. The CFB board of directors employed Wynne, Mason, Thomas and Beach 9. Beach signed a Oath of Office form of Organizing Director of Financial Institutions and a Bank Directors Responsibilities Certification which was included in the CFB application 10. Wynne signed a Oath of Office form of Organizing Director of Financial Institutions and a Bank Directors Responsibilities Certification which was included in the CFB application 11. The July 2, 1999 CFB, Employment Agreement attachments in the Application included Thomas as VP Professional-Executive Banking, Mason as VP Retail Banking, and Wynne as President and CEO 12. On December 21, 1999 – Seth Twery, a personal friend of Wynne’s, and who had borrowed money from CFB and done business with Wynne, organized BMTW Holdings, LLC (Beach, Mason, Thomas and Wynne) now known as Winton Investments with the Commonwealth of Virginia SCC. Wynne owned a 58% interest as a member. 13. On May 21, 2001 – Highlands Community Bank (HCB) registered with the Commonwealth of Virginia SCC. Wynne was a director 14. On March 14, 2002 – Seth Twery filed the newly organized 1650 Partners LLC (Wynne, Thomas and Mason) with the Commonwealth of Virginia SCC. Wynne owned 33.334%, Thomas owned 33.33% and Mason owned 33.33% interest in the LLC. Twery also filed the newly organized WMTD Holdings LLC (Wynne, Mason, Thomas and Davis) with the Commonwealth of Virginia SCC. WMTD name changed to A40 on August 3, 2012 without any change to the Original WMTD Articles of Organization. SCOTT GARRETT WAS VERY FAMILIAR WITH WYNNE, MASON, THOMAS AND GARRETT WAS VERY FAMILIAR WITH THE BANKING AND FINANCE BUSINESS 15. On May 21, 2002 – HCB filed its 2002 Annual Report, BAN #20020529, with the SCC naming John Wynne named as a director with 24,866 shares. Scott Garrett was listed as having 4,433 – 5,000 shares. On July 2, 2002 changes to Shares Subscribe List indicated that Scott Garrett had 1,773 shares. On September 16, 2002 – HCB opened for business. 16. On October 27, 2004 – The Federal Reserve Bank of Richmond Virginia approved BMTW, Beach and certain other members of the Beach family to acquire voting shares of CFFC, Lynchburg VA thereby indirectly acquiring voting shares of CFB, Lynchburg, VA EXHIBIT 6 17. On November 26, 2004 – The Federal Reserve Bank of Richmond Virginia approved Wynne, BMTW, Southgate Leigh Wynne Testamentary Trust, 1650, and members of Wynne’s family to acquire voting shares of CFFC, Lynchburg, VA thereby indirectly acquiring voting shares of CFB, Lynchburg, Virginia EXHIBIT 6A 18. On May 14, 2005 John Wynne was charged with Felony HIT and Run and Property Damage A46.2-894 and DUI 18.2-266. CFF. CFB, including all investors, bank employees, Mason, Thomas, and Beach all knew, or should have known, immediately that the loss of the service of Wynne, or his failure to perform management functions in the manner anticipated by the directors would have a material adverse effect on the bank. 19. On October 18, 2005 a AGREEMENT AND PLAN OF REORGANIZATION BY AND BETWEEN AMERICAN NATIONAL BANKSHARES INC AND COMMUNITY FIRST FINANCIAL CORPORATION was filed. Community First would merge into American National pursuant to a plan of merger. The Merger Effective Time was to occur on or before March 31, 2006 20. On January 3, 2006 Wynne was INDICTED for Felony Hit and Run and awaited sentencing in Bedford County, Virginia 21. On March 22, 2006 – Twery filed Articles of Incorporation of THE RIVERMONT BANKING COMPANY which PURPOSE was organized for THE PURPOSE OF CONDUCTING A GENERAL BANKING AND TRUST BUSINESS WITH ALL SUCH POWERS AND PRIVILEGES AS ARE NECESSARILY INCIDENTAL THERETO. The registered agent and only officer director was Seth Twery who knew, or should have known, that RBC was required by Virginia State Law to be certified and authorized to engage in the banking business by the Commissioner as well as approval of the banks applications for insurance of its deposits by the FDIC. 22. On April 1, 2006 – American National Bankshares acquired Community First Financial Corporation. CFFC was the parent company of Community First Bank, which operated four offices serving the City of Lynchburg, Virginia and the counties of Bedford, Campbell and Nelson. The bank had reported assets of 4161 million at December 31, 2005. 23. On April 6, 2006 – Twery wrote a letter to Virginia Bankers Association Benefits Corporation, “Mr. Allison enclosing two applications for John Wynne. RE: Rivermont Banking Co.” Enclosed was The APPLICATION FOR COVERAGE THROUGH VBA BENEFITS CORPORATION filled out by Wynne BANK NAME – THE RIVERMONT BANKING COMPANY BUSINESS ADDRESS – 715 COURT ST, LYNCHBURG VA 24504 NAME OF PLAN ADMINISTRATOR FOR YUR BANK – JOHN WYNNE #3 Group Major Medical Insurance for employees and dependents was check marked and #4 Group Dental was check marked. #9 a. none was written c. none was written EFFECTIVE DATE :APRIL 1, 2006 This employer is a member of the Virginia Bankers Association Dated at Lynchburg Virginia this 6th day of April 2006 Name of Bank was hand written THE RIVERMONT BANKING CO (INORGANIZATION) By Wynne’s signature Title ORGANIZER / EMPLOYEE EIN# 02-0772773 Witnessed and signed by Seth Twery. Twery knew FULL WELL as Wynne, Rivermont Banking Co, 1650, BMTW and SGLWTT’s attorney, that Wynne had been INDICTED, ARRESTED and was ordered to be remanded to jail on June 20. Wynne and Rivermont COULD NOT get insurance or be certified or authorized to transact or engage business as a bank in the banking industry without filing a application with the Federal Bureau Of Financial Institutions of the SCC in the State of Virginia. Twery filed the documents for Wynne, aiding Wynne with the start of the RIVERMONT BANKING SCAM! 24. The 2nd enclosed document was a Universal Application to the VBA and was filled out by Wynne and dated April 3, 2006. Effective date April 1, 2006 naming Wynne and his children on the medical/dental policy. Wynne’s application supplied the necessary information to the VBA for their employees to fill out employee information forms to generate the policy. Wynne indicated in the application that Robert Beach was to be his beneficiary 52% on the policy effective date 1/5/2005. 25. On July 21, 2006 – Wynne was sentenced to incarceration for the term of 12 months in jail and the conviction of DUI and Property Damage, suspended after the service of 6 months in jail., upon the following conditions. Wynne was placed on unsupervised probation to commence 9/5/06 for 1 year, during which time Wynne was ordered to be of his good behavior in all respects. The Court ordered that Wynne’s operator’s license be suspended for 1 year. The Court authorized Wynne to serve his sentence on the Work Release Program, if eligible. The Court ordered Wynne to report to the Blue Ridge Regional Jail, Bedford, VA Summary of FACTS 26. On or about September 18, 2006 CVLR was leasing a 400 horse farm in Lexington VA, training out of the VA Horse Center, and showing and giving riding lessons. Rivers called Wynne inquiring about an ad he ran for pasture for rent. Rivers met Wynne at his Rivermont Banking Co office. Wynne told Rivers he was a bank and met her outside the building. Wynne directed Rivers to meet a employee of his, Terrance White at 1688 Holcomb Rock Rd, Lynchburg VA and he would show her the pastures. Rivers needed pastures for her four (4) stallions. While she was there with Terrance, he mentioned that he also had horses. He also mentioned that if Rivers ever needed to borrow money or was in need of financing that Wynne was the guy to go to. Terrance was happy with the investments he had with him. Rivers had recently had her show trailer stolen and had a important GIG scheduled. Rivers returned to the bank office on September 20, 2006 and signed a lease for the Well Away Farm pastures and discussed the possibility of RBC financing a horse trailer for Rivers. Wynne was, in fact, working in his office during the day and sleeping at the jail at night. Rivers had no idea Rivermont was a illegal enterprise. Wynne agreed but needed Rivers income history, mother’s maiden name, employment history, 2 yrs Performa, etc. Rivers got right on it and was excited! Rivers had NO credit and needed a “White Knight”. Wynne knew that. Rivers researched Rivermont Banking Co on the Virginia State Corporation Commission website when she got home that night and found Rivermont Banking Company to be in good standing with the State of Virginia. In 2005 through October 2007, Rivers operated a full service equestrian business known as CVLR Performance Horses, Inc., but she was required to travel between four different locations to perform all of the functions of her equestrian business. In early 2007, Rivers learned that S&R Farm, LLC was offering the Serene Creek Run Riding Center ‘the Riding Center” for sale. The riding center had at one location all of the facilities Rivers needed to conduct her equestrian business. Rivers negotiated with S&R an agreement for CVLR to purchase the riding center property. S&R could not lease the riding center due to their divorce. Rivers went to Wynne, who held himself out as the President of Rivermont Banking Company, and asked him to finance CVLR’s purchase of the riding center. 27. On January 29, 2007 Rivers and Shana Beck Lester began negotiating CVLR’s purchase of S&R’s Serene Creek Run Riding Center Lester could not lease the farm because she had to sell due to her divorce. Rivers let Lester know that she would only be interested in purchasing the Riding Center is she could have the Option and First Right of Refusal on the Riding Center and ALL the remaining S&R Farms property. Rivers plans were PROJECT based not just a small 20 acre farm! It included a Commercial Riding Center and building out and being the developer of the Subdivision on the remaining land. Wynne knew that!! Wynne agreed that Rivermont Banking Co would finance the Riding Center ONLY, not the other land. Rivers and CVLR only needed Wynne to finance the Riding Center because Rivers knew the equine industry well enough to know that she was getting the Riding Center at a GREAT price. 28. On February 8, 2007 Rivers found a horse trailer she liked but her Dodge wouldn’t be able to pull it. Wynee agreed to finance whatever CVLR needed if it could make the numbers work. Rivermont Banking Co financed $39,075.07 for a USED 53’ 1999 Sundowner 5 horse/Living Quarters Show Trailer for CVLR. Rivers signed the back of the title as co buyer and took possession of the trailer agreeing to pay RBC Eight and ½ percent (8 ½%) interest on the loan, pay all tax, tag, etc on the trailer. It was hers! Wynne told Rivers she would get the title when she paid for it. 29. On February 9, 2007 Rivers drove Wynne to Battlefield Ford, Manassas VA, to look at a Black F450 flatbed truck Rivers found online. Rivers liked it and Wynne, through Rivermont Banking Co, agreed to finance $27,693.27 and put up a $16,000 deposit for CVLR. The truck was to be titled in Rivers and Rivermont’s name. Rivers called the insurance company and had the trailer added to her State Farm policy. Less than 90 days later, Rivers had to take the F$%) back because it was a lemon! Rivers had vested out money and had a chip, and a new transmission put in the truck but it was still a lemon. Rivers had contacted Wynne about the problems but he told her, “It’s your truck. Rivers contacted Battlefield Ford and reminded them that she had a lemon and she needed a truck. Rivers took the truck back and they already had a newer F650 waiting in the lot for her. WOW! It was beautiful. Rivers called Wynne and he agreed that Rivermont would finance $76,000 for the F650. Again, as usual, Rivers agreed to pay 8 ½% interest on the loan. Wynne arranged for Battlefield Ford to prepare a promissory note for $76,000 to Rivers and let Rivers sign the bill of sale because it was her truck. Rivers called her insurance company and had State Farm remove the F450 and put the F650 on her State Farm insurance policy. Rivers bought the F650! Rivers signed all the documents for herself personally. Rivers was told the registration and tags would be sent to her but the title would be sent to the lien holder (Rivermont Banking Co). Rivers drove away and took possession of the F650. The SCAM has begun and she is not aware of it at all!! Rivers received phone calls from Battlefield Ford telling her that Rivermont had not yet financed the F650 and that Wynne never paid the $16,000! Rivers didn’t know what to do. 30. On March 2, 2007 Wynne told Rivers that before Rivermont would agree to commit to finance the S&R Farms to CVLR Performance Horses, Inc and Rivermont Banking Co LLC Purchase Agreement, Rivermont Banking required Rivers to buy a $One Million Dollar Life Insurance policy to cover an amount equal to Rivermont Banking Company’s financing of CVLR’s John Deere tractor equipment, F450 truck loan and the $412,500 principal amount , bearing interest at a fixed rate not exceeding 7 ½ % per year, pursuant to the agreement and understanding between Rivers and Wynne, naming Wynne as her beneficiary. He introduced her to his friend, Prudential Insurance associate, David Carter. Rivers filled out the Life Insurance Policy Application. Wynne paid for the first installment $637.33 and reminded Rivers that she would need to pay him back very soon. The Life Insurance Policy decision came back on July 2, 2007 and Prudential would only issue a $600,000 policy BECAUSE THE PURCHASE CONTRACT WASN’T SIGNED YET and it wouldn’t justify the $1 Million Dollar amount. Wynne represented to Rivers that Rivermont was a bank. Rivermont appeared to be a bank and held itself out as a bank. Rivers did not know that Rivermont was not authorized by law to do banking business and that Rivermont was feloniously holding itself out to be a bank in violation of Va. Code 6.1-112(A), 6.2-938, 939. Actually, Wynne was at that time incarcerated and o work release, but Rivers did not know that. 31. Between March 1 and 9th, 2011 – Rivers reported Margie Callahan, State Farm Insurance agent, for fraud and illegally adding Rivermont Banking Co vehicle to Rivers State Farm automobile policy. On April 5, 2007 – Margie Callahan, via phone with John Wynne of Rivermont Banking Co, added a 1999 Chevy Tahoe, owned by Rivermont, to Rivers State Farm Insurance Policy #75-9603-d05-46C at Wynne’s request but without Rivers permission or knowledge, whatsoever. Rivers was named as the principal operator. On April 16, 2007 Callahan made Rivers, effectively, the principle operator of the Chevy Tahoe. On May 2, 2007, Callahan was notified by a State Farm that the policy for the Chevy Tahoe had to be cancelled due to Rivers not being eligible to be the owner. The policy was cancelled due to nonpayment. On September 14, 2007 Callahan, once again, added Rivermont’s Chevy Tahoe on Rivers’ automobile policy #75-9603D05-46E without her knowledge, permission whatsoever. Callahan took a visa payment of $768.40 over the phone from Wynne to cover the cost of the Tahoe to be insured. Rivers was the principle driver. On October 9, 2007 at 3:45 pm, Rucker Daniel Wynne, 16 yrs of age, wrecked and totaled the Chevy Tahoe, owned by Rivermont. He was driving home from school with friends, all under the age of 18. Rucker Wynne was charged with Reckless Driving. Rivermont filed a loss claim of $10,000 plus towing cost. State Farm paid checks to the order of Rivermont for $9,465.00 and $1,165.00. Rivers was named as insured and on behalf of on the face of the checks. Rivers, after having a commercial insurance company reject CVLR’s application for commercial insurance for its business, was informed that a claim had been filed on her State Farm auto policy. Rivers contacted Callahan and informed her that she had made a grave mistake. Callahan denied that Wynne told her to put the Tahoe on Rivers policy. Rivers credit history was grossly affected by the fraud. Rivers cancelled all her State Farm auto policies. Between March 1 and 9th, 2011 – Rivers reported Margie Callahan, State Farm Insurance agent, for fraud and illegally adding Rivermont Banking Co vehicle to Rivers State Farm automobile policy Callahan was questioned by the VA State Police. After reporting Margie Callahan and State Farm Insurance to the Bureau of Insurance, Richmond, Rivers subpoenaed State Farm in March 2011 to learn that not only had Callahan used her policy for Rivermonts’ Tahoe but also learned that Callahan had, in fact, added Daniel R Wynne to her fathers State Farm automobile policy as an additional driver in the household!!! The agent Rivers spoke with at the Bureau told Rivers, “We spoke with Margie Callahan and Callahan and there was nothing she could do for Rivers”. Rivers father, a State Farm Insurance customer for over 40 yrs, immediately had his policies cancelled with State Farm. 32. In April, 2007 Wynne had already made a deal with Beach, Mason and Thomas would enter into a agreement, whereby Wynne would convey a participating lending interest in the Rivermont Banking Co/ODNB financing for CVLR’s purchase of the Riding Center. Wynne agreed to also give them a interest in the S&R/CVLR Option position he hoped to have assigned to himself because of the loans Rivermont had already committed to CVLR and Rivers! Wynne was able to prove up Rivers life insurance policy making him her beneficiary on the hopeful $1,000,000. Rivermont Bank already had CVLRs financials, taxes, social security number, drivers license number from the loans it had with CVLR and Rivers and 5yr Performa for the CVLR equestrian project for another possible location. Wynne had assisted Darnell, the President of ODNB, in raising the money to organize the bank, which began operating on July 23, 2007. ODNB provided special treatment to Wynne, Beach, Mason, Thomas and their entities. Rivermont Banking Co could not be named as the purchaser of the property because the lender and the purchaser cannot be the same entity. Wynne needed to make everyone think he was the purchaser and CVLR was one of his LLC’s. At the last minute Wynne would flip the ownership from Wynne to 1650. Wynne could not be named as the owner of the riding center because the structure of the loan and credit lines would not work if he was the income for the debt service due to banking regulations. This was a commercial loan and the business had to pay the debt. They had to keep CVLR in to pay the debt, and provide the insurance. ODNB provided special treatment to Wynne because he assisted the bank’s organizers in obtaining funding to start the bank and he was a good customer. Mason, Beach and Thomas had interests in the CVLR loans. ODNB was a new bank, struggling to establish its business. IDNB did not operate as a normal bank, following appropriate banking standards and practices, but Rivers did not know that. It maintained lax loan standards and loan documentation during the fall of 2007, which resulted in an agreement with the Office of Comptroller of the Currency in 2010 to modify its practices. The plaintiff can prove this because the Comptroller of the Currency investigated ODNB’s loan practices, found evidence of misconduct, and issued an agreed “cease and desist” order in OCC case No 2010-157, which stated: “The Comptroller has fond unsafe and unsound banking practices relating to inadequate capital planning; inadequate strategic planning, high levels of problem assets; an inadequate allowance for Loan and Lease Losses (ALLL), inadequate problem loan identification and loan review, improper accounting for non-accrual loan, weaknesses in concentration monitoring; and weaknesses in the Bank’s contingency funding plan.” 33. On April 17, 2007 CVLR Performance Horses, Inc and Rivermont Banking Co LLC and/or assignees entered into a Purchase Agreement Contract to purchase the Serene Creek Run Riding Center from S&R Farms LLC. Rivermont Banking Co agreed to loan the $20,000 to CVLR to put up the deposit for the Contract which was required before the sellers would sign. Proof of financing was also required and Wynne filled out the financing portion agreeing that Rivermont Banking Co would finance the principal amount of $412,000 for CVLR at a fixed rate of 7 1/2% per year. EXHIBIT 7 34. On April 24, 2007 CVLR Performance Horses and S&R Farm, LLC entered into a OPTION TO PURCHASE AND FIRST RIGHT OF REFUSAL AGREEMENT S&R agreed to convey and sell any/all remaining property of S&R Farm, LLC to CVLR Performance Horses, specifically INST #030024202 which included TM #99-3-1, 99-A-28 and 99-3-3 (the Riding Center) The Option was recorded in the Bedford County Courthouse on April 24, 2007.CVLR and S&R agreed that CVLR would move its entire enterprise to the Riding Center and pay the electric bill and to pay Shana Beck Lester $500 per month, for compensation until they closed on the sale of the riding center or until the end of the two years indicated in the option, whichever came first. The apartment renter had until June 15, 2007 to vacate the property. CVLR has NEVER released or assigned any portion of the Option and First Right of Refusal. Wynne, Beck and Lester knew that the S&R Farms Declarations and Covenants states’ that the Developer of the Serene Creek Run Subdivision would be the owner of the “farm parcel”. The farm parcel was, in fact, the remaining S&R Farms land that CVLR had optioned. During the times relevant hereto, Rivers has been the sole owner of CVLR. On October 29, 2007, ODNB issued a loan commitment letter to Wynne. ODNB committed to loan to an LLC to be Formed $475,000 to fund the purchase of the riding center property and $25,000 for working capital. Two days later, April 26, 2007, Wynne instructed Vicki Marsh to wire $465,000.00 to his Southgate Leigh Wynne Trust acct #01120246. EXHIBIT 8 35. April 26, 2007 Walter G Mason II, R Thomas Beach, J Michael Thomas (Grantors), and John L Wynne (Grantee) entered into a MEMBERSHIP INTEREST ASSIGNMENT AGREEMENT AND RELEASE. Beach and Mason signing on the 30th day of April, 2007, Thomas signing on the 26th day of April, 2007. This document was notarized each separate day by Sherri Sackett and faxed to ODNB after hours the night before the closing on November 19, 2007 EXHIBIT 9 36. On May 2, 2007 – Rivermont Banking Company, 1688 Holcomb Rock Rd, Lynchburg VA, added John Wynne as a Officer and Director President & Director of Rivermont Banking Company. Twery was deleted as officer, director and registered agent.. a) On May 8, 2007 Less than 90 days later, Rivers had to take the F450 back to Battlefield Ford because it was a lemon! Rivers had vested out money and had to add a chip and a new transmission in the truck but it was still a lemon. Rivers had contacted Wynne about the problems but he told her, “It’s your truck. Rivers contacted Battlefield Ford and reminded them that she had a lemon and she needed a truck. Rivers took the truck back and they already had a newer F650 waiting on the lot for her. WOW! It was beautiful. Rivers called Wynne and he agreed that Rivermont would finance $76,000 for the F650. Again, as usual, Rivers agreed to pay 8 ½% interest on the loan. Wynne arranged for Battlefield Ford to prepare a promissory note for $76,000 to Rivers and let Rivers sign the bill of sale because it was her truck. Rivers called her insurance company and had State Farm remove the F450 and put the F650 on her State Farm insurance policy. Rivers bought the F650! Rivers signed all the documents for herself personally including the warranties and bill of sale. Rivers was told the registration and tags would be sent to her but the title would be sent to the lien holder (Rivermont Banking Co). Rivers drove away and took possession of the F650. The SCAM has begun and she is not aware of it at all!! b) On May 22, 2007 CVLR entered into a LOAN CONTRACT with Rivermont and Wynne agreeing to pay 8 ½% interest on all loans and 1% per dium. EXHIBIT 10 37. On June 8, 2007 Beck was Lester were ordered by Pro Tempore, Judge Cunningham, in the Circuit Court for the City of Lynchburg, to cooperate and work with the purchasers and their attorney to effectuate the sale of the property known as the “equestrian center”. CVLR was the purchaser and was never contacted. Beck and Lester attempted to sell the Riding Center to another party but couldn’t because the S&R/CVLR Option and Right of First Refusal was recorded in Bedford County and CVLR had a Purchase Contract with S&R to purchase the Riding Center. Before CVLR signed the Purchase Contract for the riding center, Wynne couldn’t get Rivers to agree to assign the CVLR option to him for collateral so he made a deal with Beck and Lester. The loan deal was good for Wynne’s investors, the LLC and at the same time build RBC net worth and bring a commercial loan to ODNB as a new bank. Wynne’s deal was for ODNB, Beck and Lester to agree to Deed the riding center to Wynne (or his LLC) for another $20,000 kickback, make Rivers believe CVLR owned the riding center and had a mortgage and not give Rivers any CVLR. LLC or ODNB loan documentation. This scheme would keep CVLR from ever owning the riding center or the remaining S&R Farms land. In two years, after the Sellers (S&R Farms) signed CVLR Purchase Contract, the option clock would run out on the riding center portion of the option. Wynne would find a way to force CVLR or Rivers into default on CVLRs’ so-called, fabricated, mortgage loans, cutting CVLR out, thereby taking CVLRs’ option on the remaining S&R Farms land! For Wynne’s part in the scam and agreeing to get rid of CVLR having the option lien on the S&R Farms land, Wynne agreed to pay Beck and Lester no less than $20,000 and he would work a deal out with them regarding the option that he planned to own. Wynne had to wait until October because he knew he had a $44,000 kick-back coming to him from the similar Battlefield Ford scam he had already pulled off on the CVLR loan for the F650 truck that CVLR had been led to believe Rivermont financed. THEY AGREED, WYNNE WOULD OWN THE PROPERTY AND DEED TO WHATEVER ENTITY HE WANTED AND WYNNE WOULD UNDO THE OPTION FOR BECK AND LESTER. 38. On June 15, 2007 Rivers had agreed with Shana Lester and S&R Farms, as a consideration, for the S&R/CVLR Option and Right of First Refusal, to purchase the riding center and move her business to the riding center. Once Rivers was assured by Wynne that Rivermont would be a participating lender with another bank as the senior lender and they would agree to finance the riding center for CVLR. Rivers began moving onto the Riding Center to operate her business there. The former apartment tenant had moved out and Rivers was moving in. Rivers gave her first lesson at the riding center in April 2007 and was excited to finally own her own horse farm! THE TRUCK SCAM IS SIMILAR TO THE ODNB/RIVERMONT BANK SCAM 39. On June 18, 2007 Rivers received several phone calls from Mickee Gaddy and David of Battlefield Ford telling her that Rivermont had not yet financed the F650 and that Wynne never paid the $16,000! Battlefield still needed the Guarantee of Title and the Title to the first truck (F450) from Wynne. They couldn’t get a hold of Wynne or Rivermont. Rivers was very upset and called Wynne. Wynne told her to fax a letter to David and Mickee saying, ”Good morning David or Mickee. Please fax the Battlefield Ford wiring instructions to John Wynne @434-455-4900. He is prepared to wire the additional $16,000 today. I will send the Original Guarantee of Title and Title. I need another Promissory Note for the remaining balance of $60,508.86. Money will be wired to you for me for that amount.” And Rivers signed it personally. David spoke with Rivers and said he needed Wynne to put the agreement in writing and what’s going on with Rivermont? Wynne faxed a note to Mickee Gaddy RE: Crystal Rivers F650 Truck, “Please forward to David. I know there has been some confusion about funding the purchase of the purchase of the 2006 Ford. So, in order for me to know everyone is on the same page this is the deal as I understand it please confirm. I am giving Battlefield Title to the 2002 F450 with trade-in value of 427,673.27. I am also to wire $16,000 to Battlefield. Crystal Rivers is signing a $60,508.86 promissory note to be held by David. On July 1, 2007 Crystal is to pay that note out upon receipt of my $16,000 wire the vehicle will be titled in the names: John Leigh Wynne and Crystal Victoria Lee Rivers. Please notify me at fax 434-455-4900. That this is your understanding. Likewise fax me that you have received her promissory note. And upon this receipt I will wire the funds and mail title and odometer certification. If any questions please put in writing and fax to me – this will avoid any miscommunication or misunderstandings. Thanks John Wynne” David Wells faxed back, “John That is what I expected to happen. If you could get us the other title signed correctly for the 450 ASAP that would be great. Thanks David Wells” 40. On June 20, 2007 Battlefield Ford faxed a new Promissory Note for $60,000 dated May 8, 2007 FOR VALUE RECEIVED on or before July 2, 2007 and Rivers signed it and faxed it back to Battlefield Ford. 41. During the month of July 2007 Wynne made a surprise visit to the Riding Center. Rivers had been working all day. Wynne introduced Darnell to Rivers as the President of Old Dominion National Bank. Darnell said that Wynne had explained what Wynne and Rivermont wanted to do with the financing and ODNB was interested in a mortgage for CVLR. Darnell wanted her to show him around and explain the Equestrian Center project to him. Rivers got her plats and materials together and showed Darnell around. Before Darnell left he let her know that ODNB was a new bank in North Garden, Virginia and presented Rivers with a ODNB packet of information and Rivers gave Darnell a copy of the April 17, 2007 CVLR Purchase Contract with amendment and HOA Lease, the SCR HOA Covenants and Declarations, the CVLR April 24 Option to Purchase and First Right of Refusal, her taxes since 2004, copies of the plat maps, the simple appraisal on all the S&R Farms land and the 5yr Performa she had prepared for Rivermont Banking Co. Rivers was upset with Wynne because he had met with ODNB without inviting her. Rivers wanted to be in the loop for all of it. Darnell and Wynne did not divulge to Rivers that they had been associates for many years or that CVLR would not own the riding center or have a mortgage. 42. On or about July 8, 2007 Wynne told Rivers he didn’t want his name or Rivermont named on the CVLR Purchase Contract because the bank or finance company can’t be named as the purchaser. He told Rivers he would have the lien on the farm and she would het the Deed when and after she paid for it. He told Rivers and realtor Polinek that it was all Rivers and CVLR, he was just the financier! Rivermont would be the lien holder on riding center. Rivers agreed because the CVLR Purchase Contract included Lot 35. CVLR didn’t need to have Lot 35 added in the purchase contract now because CVLR had the option to purchase all the remaining land at $15,000 per acre. CVLR would save money if it removed Lot 35 from the contract. Beck and Lester agreed to $475,000 instead of $550,000 but S&R required another $5000 non–refundable deposit. They also wanted Wynne as the President of Rivermont, on behalf of CVLR to fill out the proof of financing portion of CVLR’s Purchase Contract. 43. On July 15, 2007 The Realtor, Polinek, filled out the new CVLR Purchase Contract of the Riding Center. Wynne filled out the proof of financing portion of the contract. CVLR had already borrowed $20,000.00 from Rivermont and paid the $20,000.00 non-refundable deposit on the CVLRs’ Purchase of the Riding Center! Rivermont agreed to lend CVLR the additional $5000.00. Beck and Lester signed on July 18, 2007 and Rivers signed on August 7, 2007. The closing was scheduled for August 2007. The new settlement date was changed to September 7, 2007. Unbeknownst to Rivers or CVLR, Wynne had made the deal with Beck and Lester and its understandable now why Wynne had the CVLR $5000.00 deposit check dated 8/8/08! Wynne had a year. Rivermont had already agreed and committed to provide the financing but changed the Lender First Trust now to be a principal amount of $400,000 , amortized over a term of 15 yrs, bearing interest at a fixed rate not exceeding 8 ½% per year. Wynne now had to make a deal with Lester. The $5000.00 deposit check for the CVLR Purchase Contract was dated 8/8/08. Wynne’s lending scenario required that Rivers have a $One Million Dollar life insurance policy in place covering the riding center loan from Rivermont. Rivers life insurance policy came back effective on July 2, 2007 and was only for $600,000! Wynne had to stall the closing. Wynne hadn’t leveraged and covered the loan as he agreed to with Beach, Mason, Thomas, Darnell and ODNB. Wynne, now had to wait for ODNB to open its new bank. Shana Lester and Wynne, both, tried to get CVLR to assign the option over to them. Rivers refused! EXHIBIT 11 44. On September 1, 2007 Unbeknownst to Rivers, John Wynne filled out and submitted financial information to ODNB representing the he was the owner of The Rivermont Banking Co. In the documents were a May 22, 2007 Lease Loan and Contract to Buy Agreement between Rivermont Banking Co and /or John Wynne and CVLR Performance Horses and Crystal VL Rivers. The interest on any loaned money would earn 8 1/2% interest beginning July 1, 2007. CVLR AND RIVERS, ON MAY 22, 2007, HAD AGREED IN THE RIVERMONT AND WYNNE LOAN CONTRACT TO PAY RIVERMONT 8.5% INTEREST AND 1% PER DIUM ON ANY/ALL LOANS, INCLUDING THE RIVERMONT BANKING CO LOAN FOR THE RIDING CENTER. RIVERS HAD NO IDEA THAT THE ODNB, WYNNE, AND DARNELL LOAN SCHEME WOULD BE FOR INTEREST ONLY PAYABLE TO ODNB He also provided them with his 2006 income tax return prepared by Laughlin Financial Services, his FINAL 1650 Partners LLC K1 indicating the Wynne had acquired interest in the LLC on 3/1/2002 and he was, in fact, 33.3334% owner Prepared by Lovelace and Norvelle. The closing for the riding center was scheduled for September 7, 2007! Beck and Lester never mentioned it to CVLR! 45. September 2007 Wynne was upset with Rivers because she wouldn’t agree to assign the S&R/CVLR Option to Purchase and Right of First Refusal to him for collateral towards the Riding Center loans that Rivermont was to provide for CVLR’s purchase of the Riding Center. CVLR didn’t need to, Rivers now had to guarantee the CVLR loan to purchase the riding center. 46. September 2007 Beck and Lester were upset with Rivers because CVLR wouldn’t sign the S&R/CVLR Option back over to them or give them a release FOR THE WHOLE OPTION. The option included 99-3-3 (the Riding Center), and it included the ALL the remaining S&R Farms land. Tax Map #99-3-1 and 99-A-28 listed on the Option was the “farm parcel”. The owner of the “farm parcel” would be named as “Developer” as per the Serene Creek Run HOA Declarations/Covenants. Wynne had introduced Rivers to Beach in April 2007 as a investor interested in being a participating lender with Rivermont for the loan she needed for CVLR’s purchase of the riding center! Rivers presented the entire CVLR Equestrian center and subdivision project to Beach and explained the four phases just as she had with Darnell. The amount CVLR needed was just for the riding center. CVLR planned to refinance the riding center loan in two years, pay off Wynee and then start the next phase. Wynne told Rivers a few days later that Beach wasn’t interested because it was a risk. 47. On September 20, 2007 JR Schaeffer, General Manager of Battlefield Ford, faxed a letter to Rivers stating, “Dear Ms. Rivers, On May 8, 2007 you took delivery of a 2006 F650 from Battlefield Ford with a balance due of $76,508.86. Please understand it has been more than 4 months, and we have not received the balance owed. At this time we are asking you to bring certified funds in the amount of $76,508.86, or return the truck to Battlefield Ford @8980 Mathis Ave, Manassas, VA 20110. We appreciate your immediate attention on this matter. Sincerely JR Schaeffer, General Manager cc: John Wynne”. Rivers was furious! Wynne had duped Rivers and never paid for the financing but made her get a Life Insurance to cover the truck, tractor equipment and trailer loans and the $20,000 deposit for the Riding Center in the event of her death. CVLR had agreed and signed a contract to purchase the Riding Center for CVLR. Rivermont was financing the Riding Center and wrote the deposit in the name of Rivermont Banking Co. Rivers couldn’t reach Wynne 48. On September 27, 2007 Documents that Rivers subpoenaed from Battlefield Ford and received on March 11,2011 prove that Wynne went to Battlefield Ford on this day and told Battlefield to title the F650 in the name of Rivermont Banking Co. The documents prove that Battlefield used Rivers insurance policy, original signature on file documents including the original odometer reading and warranties for the deal. The balance on the F650 was $104,215.34. Rivers was never contacted or notified. 49. On October 12, 2007 ODNB prepared a LOAN PRESENTATION sheet for borrowers LLC to be formed, principals John Wynne and Crystal Rivers, business Equestrian Farm, amount 1)$475,000 2) $25,000, purpose 1) Purchase of the Serene Creek Run Equestrian Riding Center 2)Working Capital Line of Credit, guarantors John Wynne and Crystal Rivers, conditions 1)Satisfactory appraisal for Serene Creek Farm Riding Center, 2)Tax assessment for 1884 Holcomb Rock Rd, 3)receipt of 2 most recently filed tax returns and satisfactory current personal financial statement on Crystal Rivers, 4)Receipt of satisfactory hazard and general liability insurance coverage in light of the proposed equestrian operations. Charles Darnell signed Lender and Kelly Potter signed Officers Loan Committee. Mitigation We currently do not have personal financial information statements or personal tax returns for Crystal Rivers. However, the Loan Officer already knows that her guarantee will not add financial strength to this loan request thru various pre-loan interviews. Her guarantee is being added as an abundance of caution as she will be part owner in the LLC to be established for this business entity. Settlement of the loan is contingent upon receipt of said information. As the current Equestrian Center is not our customer, we do not know the current income of said business. Therefore, we are relying on the expertise of Ms Rivers experience as an equestrian trainer to be able to grow the business and bring in sufficient cash flow to cover debt service. In the mean time, we will rely on Mr. Wynne’s personal financial strength to support the debt. We are also taking additional collateral (residential rental 1884 Holcomb Rock Rd) as an abundance of caution as we are financing 100% of the cost to purchase the subject farm. Loan is recommended as presented. Rivers was not privy to this Loan Presentation. Rivers supplied Darnell with her income taxes since 2004 and a 2yr business Performa when she met him at the Riding Center in July. 50. On October 12, 2007 ODNB faxed a Appraisal Request to Consensus Real Estate Services, LLC Borrower John Wynne and Crystal Rivers (1650 Partners) Type of Appraisal Full (if sale provide copy of sales contract) Requested by Kelly Potter 51. On October 24, 2007 Rivers prepared the final draft MEMORANDUM OF UNDERSTANDING AS PER WYNNE’S HAND WRITTEN REQUIREMENTS. Rivers and Wynne had been negotiating the MOU since February of 2007. The MOU outlined many facts. One of which was the Credit Line (Start up Loan) of $35,000 will be used solely for advertising, mortgage, insurance, Wynne’s $650 per month interest, and Wynne’s $350 per month from the Credit Line for the Serene Creek Loan because Rivermont Banking Company was financing the loan. Rivers and Wynne agreed to waive the Wynne interest payments because ODNB required Rivers to be a guarantor now. It also outlined that a 5 yr Performa will be provided to Wynne for CVLR Performance Horses and Rivers operational A/P and A/R from use of machinery and equipment. (Rivers provided the 5yr Performa, Rivers income taxes since 2004, feasibility studies, a copy of the CVLR/S&R Option, and the Plat Maps to Wynne and Darnell in July 2007 when Wynne brought Darnell to the Serene Creek Run Riding Center the first time.) The MOU also outlined that in the event of Rivers death, Riding Center and all debts to Wynne will be paid in full by her life insurance policy, for the amount borrowed and any/all assets will be given to her assigned beneficiary, including all rights and full ownership of the LLC. Rivers would have NEVER agreed to be a guarantor on a $500,000 Commercial Loan if she had any idea, whatsoever, that her company, CVLR would not be named on the DEED. The MOU stated that there were to be no other partners or directors in the LLC. Rivers knew nothing of LLC and thought that the LLC operated like a corporation which is why she never asked for a Operating Agreement from him. Rivers now knows that there were two other members of the LLC. The MOU stated that rivers may buyout Wynne for full 100% of LLC by 12/31/09 for $50,000, by 12/31/10 for $100,000 or by 12/31/12 for $200,000. Rivers and Wynne agreed to this because CVLR would need at least 2 years to build the business up in order to refinance and pay all debts. This buyout is how Wynne was going to get paid for his part in arranging the financing and for providing the LLC as a guarantor ONLY. Any monies awarded to Rivers from civil lawsuits will be used to pay off bridge and credit line loans after expenses. Wynne explained to Rivers that the LLC would have a participating lender position in a bridge loan and CVLR would have the DEED. Rivers could use the Riding Center and the LLC (finance company) to refinance ODNB’s $25,000 Start up Loan and the $475,000 Commercial Acquisition Loan. Rivers NEVER has seen any accounting for the actual Credit Line +/-$500,000 Credit Line Acct #LN 230010000 or what would be the “Bridge Loan”. Rivers didn’t know it existed until 2011 after viewing State Police documents. Lastly, The MOU outline that the Laws of VA shall apply to this MOU. The assets of the LLC and The Riding Center are not to be used for any business other than that of Rivers purchasing the Riding Center. As a result of ODNB’s agreement and commitment to provide financing to purchase the riding center, Rivers remained on the riding center property and operated her business there. Rivers business use of the property was to be protected (in addition to other protections) by her ownership interest in the LLC to be formed. Rivers’ position was a personal contractual right to buy 1650 in 2-5 years not her right as a member. Rivers was also named as a member owning interest. Rivers wasn’t required to be a member in order to buy out Wynne. Rivers was required to be a member so that the LLC to be formed would finance CVLR’s purchase of the riding center. Rivers was also the sole owner of CVLR and the member of the Serene Creek Run HOA. Since she was to be a member of the LLC her business could not be interfered with without her participation in the LLC’s decision to interfere with her, and she was to have the right to purchase all of the LLC for $50,000 pursuant to a Memorandum of Understanding, so she could buy out Wynne for $50,000 in the event of a dispute. CVLR would still have the option and first right of refusal if the deal went bad or if the closing fell through or if she found out before November 20, 2009 that the Deed was Deeded incorrectly to another entity. Wynne has denied, under oath in Bedford County Circuit Court proceedings, that such an agreement exists, but his admittance in his testimony to SAA Vaughan of the VA State Police, that there was a Memorandum Of Understanding, disputes and proves the document does in fact exist and it was being enforced and followed by Rivers and CVLR. One other separate document entitled “Crystal Rivers Land Purchase” states as one of the line items “Buy-Out Fee: In Agreement $50,000’). Another letter to Rivers, dated April 14, 2007 and signed by Wynne states that: “At this point in our relationship you must understand is that any default in any of the other payments being made including but not limited to the truck payment, the John Deere payments, the insurance payments, and all other payments regarding taxes tags upkeep maintenance as outlined in our memorandum of understanding is a default in any payment that you may make concerning the serene creek run riding center.” Rivers had a PERSONAL CONTRACTUAL RIGHT TO PURCHASE 1650 PARTNERS AND DID NOT HAVE TO BE A MEMBER TO DO SO. Rivers also had a contractual right to guarantee a $500,000 commercial acquisition loan and a $25,000 commercial start up loan with ODNB. EXHIBIT 12 52. On October 25, 2007 (Unbeknownst to Rivers) Wynne faxed to Potter, of ODNB, a note saying, “To follow Crystal’s signed application. Will mail hard copy today. Nice to meet you. John” When Rivers met with Wynne on October 24 to go get him to sign the MOU, Wynne told Rivers the bank needed her to sign a application. He gave her a faxed back page only, of what appeared to be a application. Rivers crossed a line from corner to corner of the page and signed the bottom of it. Rivers has asked ODNB for any/all documents pertaining to her, CVLR and 1650 but they have refused to give her anything and now there are claims for damages. 53. On October 10, 2007 BB&T issued a check payable to Battlefield Ford in the amount of $One Hundred Seven Thousand Three Hundred Forty One and 80/100 Dollars ($107,341.80) Description The Rivermont Banking Co Invoice amount $107,341.80 Check #201106 54. On October 17, 2007 Gail Hamilton of Battlefield Ford issued a check payable to The Rivermont Banking Co in the amount of $Forty Three Thousand Six Hundred Seventy Three and 27/100 Dollars ($43,673.27) for REFUND OVERAGE ON DEAL 55. On October 24, 2007 Wynne (Unbeknownst to Rivers) issued a Twenty Thousand Dollars ($20,000) personal check payable to Shana Beck and Ralph Beck for Deposit Serene Creek Riding Center. There was already a Twenty Five Thousand Dollars ($25,000) deposit paid and escrowed by Rivermont Banking Co for CVLR’s deposit for the purchase of the Riding Center. Wynne, Lester and Beck have all LIED, under oath testifying on August 12 and 13, 2013 in the Bedford County Circuit Court, denying that they either paid or received personal funds from Wynne or to Beck and Lester. Beck and Lester testified that all deposits were paid to their realtor. The State Virginia State Police Special Agent Vaughan testified that he received the copy of Wynne’s personal bank account through subpoena and check #705 was drawn on Wynne’s personal bank account and signed for deposit by Shana Lester and Ralph Beck 56. On October 26, 2007 - Old Dominion National Bank sent already prepared closing documents to Advantage Title and Colonial Title for the S&R/CVLR Purchase Contract closing. The Commitment Letter was included with the closing documents and the borrower name was “LLC to be Formed”. The Commitment Letter had not been signed. The Credit Line Deed of Trust only Grantor name was typed in and read, “1650 Partners LLC”. 57. On October 28, 2007 Rivers had her realtor, Teresa Polinek; revise the CVLR Purchase Contract of the Riding Center because she knew the October 31, 2007, closing would have to be rescheduled. The already paid $25,000 deposit would remain in escrow with Counts Realty. The new CVLR Purchase Contract was revised and the new closing date was November 20, 2007. EXHIBIT 13 58. On October 31, 2007 Wynne told Rivers he wouldn’t sign the Memorandum of Understanding unless she had a $ ONE MILLION DOLLAR Life Insurance Policy because ODNB required it before they would give CVLR a Commitment Letter. Rivers contacted her Life Insurance agent, David Carter and let him know she needed to amend the Life Insurance Policy to a $ ONE MILLION DOLLAR policy. Rivers went to the Prudential Life Insurance office with the July 15, 2007 signed S&R/CVLR Purchase Contract. The S&R / CVLR Purchase Contract had changed. CVLR had to borrow $5000 for an additional deposit. WYNNE HAD FILLED OUT THE LENDERS FIRST TRUST PORTION OF THE CONTRACT IN THE AMOUNT TO PROVIDE FINANCING OF $400,000 ($12,500 less than the original April 17, 2007 contract) AMORTIZED OVER A TERM OF 15 YRS AT A FIXED RATE NOT EXCEEDING 8.5% (1% more than on the April 17, 2007 contract). HE WAS NOW GOING TO USE A NEWLY FORMED FINANCE COMPANY, 1650 PARTNERS LLC TO PARTICIPATE IN THE LOAN WITH ODNB and RIVERS HAD TO PERSONALLY GUARANTEE THE COMMERCIAL LOAN. Carter amended Rivers Life Insurance Policy adding $400,000 to the original $600,000 requirement for the $ ONE MILLION DOLLARS and changed the beneficiary to ESTATE OF THE INSURED BECAUSE RIVERS ESTATE WOULD INCLUDE THE SERENE CREEK RUN RIDING CENTER. Prudential Insurance would not have issued a $ONE MILLION DOLLAR Life Insurance Policy to Rivers if Rivers business CVLR was not, in fact, would not be the owner of the Serene Creek Run Riding Center. That night, at 5:30 pm, Sanzone and Baker, Delisa Banks faxed pgs 1, 3, 10 and 16 which included the Ralph and Shana Beck 2004 appraisal for the market value of the remaining 150 acres of land, the market value of the Beck home and 20.15 acres, and the market value of Serene Creek Run Riding Center, and 18.34 acres of land. The fax was sent for CVLRs loan for the riding center. Sanzone and Baker did not represent 1650, they represented CVLR. The 2004 appraisal and its findings was what Rivers had used to prepare the S&R Farm LLC/CVLR Performance Horses Inc Option and First Right of Refusal. 59. On November 2, 2007 Wynne and Darnell came to the Riding Center and surprised Rivers with the ODNB Commitment Letter. Rivers asked about the LLC to be formed and Wynne told her he was going to use his newly formed finance company, 1650, instead of Rivermont to bridge the financing. Rivers asked about Articles of Incorporation and Wynne told her his lawyer was taking care of it. It was not what Rivers had asked Wynne for but she was assured that Wynne wouldn’t put collateral up if he didn’t believe in her. The $35,000 start up loan amount had changed so Rivers made the change on the MOU to $25,000. Rivers and Wynne had already agreed that the S&R/CVLR Option was off the table for collateral because Rivers was now guaranteeing the $500,000.00 loans with ODNB (mortgagee) and the newly formed LLC finance company. Wynne and Rivers also agreed to waive interest being paid to Wynne or Rivermont for interest on the riding center loan because Rivers refused to pay interest to Rivermont or Wynne for THE RIDING CENTER loan she was now responsible to pay INTEREST ONLY ON. Rivers signed the Commitment Letter and the new CVLR Purchase Contract. Beck and Lester signed the S&R/CVLR Purchase Contract on November 5, 2007. Wynne did not sign the ODNB Commitment Letter until November 7, 2007. Darnell said congratulations! now get busy and keep those payments paid!! Rivers made copies of the MOU, Purchase Contract and the Commitment Letter gave them to Wynne along with a newly, more detailed, prepared 5 year Performa to take with them. Neither, or Darnell explained the loan, the process, the closing or anything. Rivers had a personal contractual interest in the loan being committed to with ODNB. She was responsible to pay the note and her CVLR business was the cash flow, the income and the contract holder of clients business. 1650 NEVER EARNED AN INCOME, NEVER SIGNED A CONTRACT, NEVER HAD A CASH FLOW FROM THE RIDING CENTER, EXCEPT THOSE MONIES DEPOSTITED, ILLEGALLY AND WITHOUT RIVERS KNOWLEDGE OR PERMISSION, BY ODNB, INTO 1650, SGLWT, WYNNE AND RIVERMONT BANK ACCOUNTS AT ODNB AND BANK OF THE JAMES. RIVERS DID NOT WORK FOR 1650 AS AN EMPLOYEE. The ODNB Commitment Letter was altered by Mary Lou Hopkins, after Rivers signed it, and faxed to Jennifer Richardson of Advantage Title on November 15, 2007. The commitment letter is contractually null and void. The loan was sham. The closing was sham. Rivers paid what she thought were monthly mortgage payments to, ODNB, the mortgage company as per her conversations with Hopkins and the insurance company that name ODNB as the Mortgagee EXHIBIT 14, 15 60. On November 5, 2007 Ralph Becks attorney, Lisa Schenkel, provided Beck with a copy of the S&R Farms/CVLR purchase contract and he signed it. Shana Beck Lester also signed the contract. 61. On November 6, 2007 Wynne’s $20,000 bribe check to Beck and Lester was deposited in their personal SunTrust bank account. 62. On November 7, 2007 John Wynne signed the ODNB Commitment Letter. 63. On November 13, 2007 The 1650 Partners DEED was prepared by Sherwood S Day, Esq. The DEED was between S&R Farm LLC as GRANTOR and 1650 Partners LLC as GRANTEE. The deed described the 18.35 acres that CVLR PERFORMANCE HORSES had NOT ONLY agreed to purchase and had put $25,000 deposit down on but CVLR also had a recorded Option and First Right of Refusal Agreement with S&R Farm LLC that had been noted in the title work on November 15, 2007!. The DEED, document #070017319 had been signed by Shana Beck as Member Manager of S&R Farm LLC and Ralph Beck as Member Manager of S&R Farm LLC. The DEED had been prepared without the benefit of a title search. Tax ID was #99-3-3. Title Insurance was Lawyers Title. Rivers WAS NOT aware of the DEED, the preparation of the deed, the signing of the deed and was not asked and did not give permission, assignment or release of the S&R/CVLR OPTION AND FIRST RIGHT OF REFUSAL OR THE S&R/CVLR PURCHASE CONTRACT to anyone, any attorney or entity. 64. On November 15, 2007 Both Beck and Lester signed the S&R/CVLR Deed naming 1650 as the Guarantee on the face of the Deed in front of Sherwood Day as the notary public. The file name the back signature, notary page, of the Deed read, “MSW/Merle/Deeds/CVLR.D” a)On November 15, 2007 @ Mindy Marlowe of Advantage Title and Colonial Title prepared and made effective, the title search for the S&R Farm to CVLR Purchase Contract of the Riding Center which included in the S&R Farm/CVLR Option and Right of First Refusal Tax Map No Part of 99-3-3. The Purchaser was listed as John L Wynne. Richardson also faxed a request to Jena Z at the Beck and Lester’s, Planters Bank, for the P/O and release on the 18.35 (riding center) parcel. Planters Bank reviewed the title work that Jennifer Richardson has sent over and realized CVLR had not signed for or given a release on the 18.35 acre parcel. EXHIBIT 16 b)On November 15, 2007 – (5 days before the S&R/CVLR closing) ODNB VP & Commercial Relationship Manager, Kelly Potter filled out both pages and signed page 3.C-13 the REAL ESTATE APPRAISAL CHECKLIST FOR THE S&R FARMS TO CVLR PERFORMANCE HORSES PURCHASE CONTRACT Exhibit 5 of a Revised May 2007 lending Real Estate Appraisal form Page 3.C-12. She wrote: Borrower Name John Wynne –Serene Creek Run, Loan Amount $475,000. She check marked #1 as YES - the appraisal had been received in sufficient time to be analyzed before the decision was made. #2 as YES – was the appraisal assessed for completeness before it was used in making the decision? #2a as YES – are the assessment procedures documented in the file? The S&R/CVLR appraisal for the purposes of CVLR purchasing the Serene Creek Run Riding Center from S&R Farms had, in fact, not been completed yet and ODNB knew that. c)On November 15, 2007 Hopkins faxed 4 pages to Jennifer Richardson of Advantage Title RE: 1650 Partners LLC. Attached, is our commitment letter signed by Mr Wynne We are doing two separate loans: The first for $475,000 using Serene Creek Run Riding Center as collateral, the second for $25,000 using 1884 Holcomb Rock Rd as collateral The Mortgagee clause will be ODNB. She included the commitment letter dated October 29, 2007 signed by Wynne on November 7, 2007 and Rivers on November 2, 2007. Borrower: LLC to be formed. The Commitment Letter had been altered from its original version dated October 26, 2007 and sent to Advantage Title prior to Rivers and Wynne signing. Hopkins added the words 1650 Partners LLC after Rivers signed on November 2, 2007. Purpose: 1)to purchase Serene Creek Run Riding Center 2)to provide working capital funds for Serene Creek Run Riding Center Contingencies: 1)receipt of a satisfactory appraisal for SCRRC 2 receipt of 2006 and 2006 personal tax returns for Crystal Rivers 3)receipt of current personal financial statement on Crystal Rivers Insurance: General liability insurance in the minimum amount of $1,000,000 and hazard insurance equal to the appraised value is required prior to settlement naming ODNB as additional insured/loss payee Corporate Documents: The Articles of Organization/INC/Assoc, Operating Agreement and certificate of Good Standing for the LLC to be formed must be submitted prior to loan closing This commitment letter will expire on November 16, 2007 Rivers was not privy to this information nor was she contacted by ODNB, Wynne or Advantage Title When Rivers signed the Commitment Letter on November 2, 1650 Partners name was not on the document. Wynne and Darnell already knew and had submitted 10/12/07 loan presentation and request for appraisal for 1650 to be the borrower for the S&R/CVLR Purchase Contract. However, ODNB didn’t make the final decision of 1650 being named as the borrower until November 19, 2007 because ODNB was waiting on Thomas and Masons 1650 tax returns for 2006. I SIGNED GUARANTOR AND AN ENTITY PG EXHIBIT 17 d)The Regulatory Requirements and the USPAP Standards Section of the Real Estate Appraisal Checklist asked questions that needed to be answered yes or no. Potter answered YES to all knowing the appraisal had not, in fact, been finished or written or completed or received by ODNB or CVLR. Potter underlined summary appraisal report. 65.On November 15, 2007 The Summary Appraisal Report section was checked marked YES for all 11 questions and signed by Potter a) The same document was signed by ODNB VP Mary Lou Hopkins with a 12/17/07 date on the Page 3. C-13. ODNB, Darnell, Hopkins, Potter and the bank directors and the LOAN COMMITTEE, in fact, pushed the closing through knowing the Appraisal was prepared for CVLR’s purchase of the Serene Creek Run Riding Center. On November 19, 2007 at 10:35 Twery faxed a AMENDED OPERATING AGREEMENT OF 1650 PARTNERS LLC to ODNB and ODNB, in fact, excepted it. The agreement was not dated and it was between the Company and John L Wynne and Crystal VL Rivers as the members of the Company. Under Article I 1.01 Formation read Since August, 2006, John L Wynne has been the sole Member. Under Article VII Manager, 7.02 read The Manager shall be John L Wynne, Walter G. The term of manager shall continue until his successor is duly elected, unless he is sooner removed by or as a result of the earliest to occur of i) operation of law ii)an order or decree of any court of competent jurisdiction, ii)voluntary resignation, or iv)a withdrawal event with respect to such manager. Article X Assignment Resignation 10.01) Outlined the Assignment Generally. Page 13 had signature lines for Wynee and Rivers but not for Mason. Page 14 listed Wynne’s percentage economic interest as 99.99% not the real 33.33334% that he, in fact, owned. b) On November 16, 2007 Wynne conveyed his 1884 Holcomb Rock Rd, Lynchburg VA property to 1650 without Rivers knowledge. The property was the very property being used as collateral for ODNBs’ loan #12000600 to 1650 for $25,000 c)On February 19, 2010 A HUD 1A form used for a 1650 closing was Optional Form for Transactions without Sellers. The HUD was signed by both members, whereas, CVLR was kept from signing the November 20, 2007 HUD at her closing being told she had signed for CVLR. d) The Lenders Certificate of Insurance issue date was 9-10-09, Policy #700-6702M224-TIA-09 (different from CVLRs’ November 20, 2007 issued policy), Named insured was 1650, Policy Period was 10-20-09 to 10-20-10 and the Insurance Company was Equine Insurance Specialists. The policy had been written without any notice to Rivers or CVLR that Wynne would now be the Primary Policy Holder on the riding center. CVLR was still paying for a $159,000 loss of business policy. 100. On November 19, 2007 00:39 Consensus Appraiser Don Pendleton, faxed the appraisal invoice #603 to ODNB, Darnell. The cost of the Summary Appraisal Report for property of S&R Farm, LLC under contract to CVLR Performance Horses, Inc was $2700.00 a)On November 19, 2007 at 11:19am ODNB received and excepted 2005 income tax documents for 1650 Partners LLC, for James Thomas as 33.33% owner, John Wynne as 33.333334% owner and Walter G Mason II as 33.33% owner that had been filed 2/23/06 which was required by ODNB for all members. ODNB’s own attorney, Kevin Philip Oddo, testified on November 16, 2011 before the Honorable Norman K Moon, United States Judge stating on page 320 line 10-14, “She was a member. At the time the transaction happened, she’s a member of the entity. Every bank gets all of the members of the entity to sign guarantees. It happens every day. If that’s fraud we’re all going down.” ODNB required all members to sign as guarantees. Including Thomas, Mason and Rivers. Rivers had not been contacted requesting anything additional that may be required, except CVLR’s $1,000,000 Commercial Insurance Policy. Rivers still was not a member of 1650. Rivers did not know how LLC’s worked. b) On November 19, 2007 A ODNB Memorandum was Issue from Kelly Potter to Serene Creek Riding Center – John Wynne Loan File Subject: Borrower Name change. A $450K loan was approved to and LLC to be formed and guaranteed by John Wynne and Crystal Rivers for the purchase of the Serene Creek Riding Center in Lynchburg, Va. The Borrower is now going to be an existing LLC which Mr Wynne has owned for some time – 1650 Partners, LLC. The Articles of Organization has been changed to add Crystal Rivers as a minority owner of the LLC. This will now be our borrower. John Wynne and Crystal Rivers will be our guarantors. We still do not have the personal financial statement and tax returns for Crystal Rivers. However, we are relying on the strength of Mr. Wynne for this loan, and the guaranty of Ms Rivers is being added purely as an abundance of caution as she will be managing the day to day affairs of the riding center. The Articles of Origination were submitted to ODNB just as they were in 2002 and had not, in fact, been changed to include Rivers. CVLR had not assigned its contractual right to purchase the Riding Center to Rivers or anyone else. The Virginia State Police subpoenaed documents included Rivers tax and personal financial information back to 2004. The 5 yr Performa Rivers provided to Darnell had been altered at the top to read 1650 Partners in what appears to be Hopkins hand writing. c) On November 19, 2007 at 22:48pm A MEMBERSHIP INTEREST ASSIGNMENT AGREEMENT AND RELEASE was faxed to ODNB. It was between Walter G Mason II, R Thomas Beach, J Michael Thomas (Grantors), and John L Wynne Grantee.) This document was used as a vehicle, whereby, all members of the LLC gave Wynne permission to sign as the Guarantee for all members and Wynne could be named on the Credit Line , sell or bargain only his .001% to Rivers and use the property as collateral for the Credit Line. The “group of men” had a personal investment interest and a lending position in the Serene Creek Run deal. Beach and Mason signed on the 30th day of April, 2007, Thomas signing on the 26th day of April, 2007 and Wynne signing on the 5th day of May, 2007. It was notarized by VP Marketing Select Bank and Wynne former employee Sheri Sackett. The agreement stated among many things that 1) The parties hereto acknowledge and certify that sufficient consideration had been exchanged to create a binding legal contract and each waives any right to contest the validity and sufficiency of said consideration. 4) Representation of Comprehension of Document. In entering into this Agreement, each of the parties represents that it has relied upon the advice of its attorneys, we are the attorneys of its own choice, concerning the legal consequences of this Agreement; that the terms of this Agreement and their legal consequences have been completely read and explained to it by its attorneys; and that the terms of this Agreement are fully understood and voluntarily accepted by it. In addition, the parties (and each of them) represent that they have relied, or will rely, upon the advice of their respective accountants and/or lawyers of their own choosing concerning the tax consequences of this Agreement. 6)Confidentiality The parties (and each of them individually) and their attorneys agree that they will maintain in confidence all provisions of this Agreement, including, but not limited to, the settlement amount, unless compelled to disclose the same by the court process, or otherwise by law, that they will not discuss or reveal, directly or indirectly, any facts underlying the Agreement to any person (including without limitation members of the media); that they will exercise their best effort and good faith to prevent disclosure or dissemination of this Agreement and/or its terms and conditions by themselves or any of their other representatives, consultants, experts or agents, and that they will not disparage any other party in any fashion; The parties acknowledge that this confidentiality provision is a material term of this Agreement, without which the purchase reflected herein would not have been reached. 7). Purchase of 1650 Membership Interest. Except as permitted Grantee in writing. Grantors shall not purchase or cause to be purchased any membership interest of 1650 in the future. 8) Governing Law. This Agreement shall be construed, interpreted and governed in accordance with the laws of the Commonwealth of Virginia, without reference to principles of conflicts of laws. 15) This Agreement shall be binding upon the parties hereto, and their executors, administrators, personal representatives, heirs, successors and assigns, and shall inure to the benefit of each of them and to their executors, administrators, personal representatives, heirs, successors and assigns. Wynne, Mason, Thomas and Beach all agreed to the SCAM. Beach wasn’t even a member of 1650 but he signed the document because they he had a interest in the CVLR’s loan and equity. They needed Rivers signature and the guarantee that the CVLR income would cover the debt service. (Wynne had introduced Rivers to Beach around Easter of 2007 explaining to her that Beach was an investor that may be interested in backing the CVLR loan with Rivermont. They never let on that they were partners. Wynne told Rivers Beach wasn’t interested) All parties to the agreement were members of 1650 Partners and former employees of former Community First Financial Corp and Community First Banks. Before Wynne was sentenced for Felony HIT and Run and DUI the officers and directors and investors formed their own new bank, Select Bank, Forest Virginia. Select Banks’ target opening date was May 1, 2007. The end deadline was October 31, 2007! Rivers called both Thomas and Mason in 2009 to inquire about 1650. Thomas told Rivers he hadn’t had anything to do with 1650 in years. Rivers asked how many years? Thomas said since we sold the bank. Thomas told her she needed to talk to Wynne about that. Mason refused to talk with Rivers. Beach denies signing anything after the sale of the bank and didn’t know anything about 1650 and doesn’t want to get involved! 66.Sometime before November 20, 2007 ODNB delivered a set of closing documents already typed and prepared to Advantage Title and Colonial Title for the November 20, 2007 closing. Advantage Title had already completed and submitted the title work to ODNB, Twery, Wynne, Lisa Schenkel, Ralph Beck, Frank Morrison, Shana Beck Lester, and Teresa Polinek. (Rivers never saw the title work or any closing documents until March 2011) The Credit Line Deed Of Trust was present at the closing. Wynne initialed it and signed it. Jennifer Richardson notarized Wynne’s signature. Rivers saw a portion of the document that said Deed of Trust and asked, “What about CVLR?” Wynne replied, “You’ve already signed for CVLR.” Much later, in March of 2011 Rivers found out that the CLDOT had been altered and John Wynne’s name had been TYPED IN WITH A DIFFERENT FONT and his address was hand written by what appears to be Jennifer Richardson’s handwriting 67. On November 20, 2007 Evan Beauchamp,(CVLRs’ insurance agent) instructed Kim Wright, (his assistant) to, “ run Rivers credit card tomorrow (11/21/07). He needed her to email the CVLR binder to the attention of Crystal Rivers and fax it to the attention of Mary Lou Hopkins at 434-293-4923. She is with ODNB (the mortgage company). Mary Lou’s phone number is 434-293-5201 if you have any questions. The insured is closing on the mortgage this afternoon, so the binder needs to be sent to her ASAP. Please make sure the certificate holder (Mortgagee) reads as follows: Old Dominion National Bank PO Box 299 North Garden, VA 22959 Loan 1: 12000500 Loan 2: 12000600 Thanks! EB” 68. On November 20, 2007 Wynne spoke with Richardson before the closing, as per a fax by Twery, to discuss the closing. Wynne’s name was added to the Credit Line Deed of Trust on what appears to be Richardson’s handwriting, but not until after the closing. a) On November 19, 2007 Tracy Parachini emailed ODNB CVLR’s $2,000,000 insurance commercial farm policy #FSL4161961 binder at 11:19 am Subject: here is the binder on Crystal Rivers. After receiving the document, someone wrote 1650 Partners 12000500 on the face of the document altering it to be the property of 1650 in what appeared to be Hopkins. Rivers had changed insurance companies and the policy would be bound by American Bankers effective on November 19, 2007 b) On December 20, 2007 at 5:09 pm American Equine Insurance Group faxed a Ranch and Estate Quote to ODNB for proposed insured CVLR Performance Horses and the Serene Creek Run Riding Center good for 30 days. After ODNB received the new commercial farm policy binder, the document was also altered to read 1650 Partners in the insured column along with CVLR name and address in what appears to be Hopkins handwriting 69.The HUD statement was present at the closing and signed by the sellers Beck and Lester before Rivers and Wynne arrived. Wynne signed it but Rivers was not allowed to view or sign it and was told she had signed for CVLR. Rivers was told her lawyer would get a copy of the closing documents. Joey Sanzone had informed Rivers a week before the closing that Rivers would be fine because her mortgage broker and lender would be at the closing and that she should have them send the closing documents to his office. Rivers did not see or obtain the HUD until 2010 when she met with Realtor Diane Ray and VA State Police Special Agent Bill Talbert. A proceeds check was issued to 1650 Partners LLC for $10,514.20. It was one of the documents that Rivers demanded in March of 2011 that Richardson provide her with the front and back of all proceeds checks paid out from the November 20, 2007 closing. The $10,514.20 check was payable to 1650, signed by John Wynne to Rivermont Banking Co on December 11, 2007. In 2009 The Virginia State Police had assigned SAA Bill Talbert to Rivers case to investigate Wynne and Rivermont Banking Co. Rivers was told she was one of a handful of Wynne’s victims. Talbert was looking for the tie between the victims and the loan scenarios between them and the Rivermont Banking Co and Wynne lending schemes. Talbert and Ray thought Rivers must have assigned the Purchase Contract to 1650. They both agreed that it was the only way Wynne could have pulled off the scheme. Rivers was told she and CVLR were screwed! a) November 20, 2007 Twery submitted a invoice #2801 charging costs for certificate of good standing $6 and legal services rendered in connection with the purchase of Serene Creek Run Riding Center $1200. Rivers never knew that Twery was the “closing attorney” until March 2011 when she viewed her closing documents for the first time. Twery had never contacted her regarding the S&R/CVLR Purchase Contract Agreement or the S&R/CVLR Option and Right of First Refusal or 1650 Partners or Rivermont Banking or John Wynne or this closing. Twery knew that the closing was illegal and fraud induced. Twery also knew that CVLR had a cloud/lien on the title because of the S&R/CVLR option. b) On November 20, 2007 Consensus Real Estate Appraisals submitted the completed appraisal for the S&R Farms/CVLR Purchase Contract to Old Dominion National Bank and Advantage Title Co. 70.On November 20, 2007 Rivers signed as a member on a un-named document agreeing that the foregoing Operating Agreement constitutes the sole and entire Operating Agreement with page #13 at the bottom a)On November 20, 2007 Rivers had instructed Equestrian Insurance Specialists to email a copy of CVLR’s Commercial Equine and Farm Insurance Policy to Mary Lou Hopkins that morning or she was told the closing was off and the deal was dead. Rivers and CVLR were “Under the Gun” and knew they had to get their Commercial Insurance policy submitted and proved up before the November 20, 2007 closing. Rivers, in fact, remembers the only conversations she EVER had before November 20, 2007 with ODNB VP Mary Lou Hopkins and Colonial Title, Title Agent/Owner Jennifer Richardson and closing agent at Advantage Title was regarding the insurance certificate. ODNB, Hopkins, Colonial Title, Richardson and Advantage Title all knew CVLR was the purchaser and the purchaser had to provide and prove Commercial insurance on the property. ODNB was the additional insured. Rivers, personally signed a “Personal Guaranty” of 1650 Partners debt to ODNB. Rivers should be afforded any/all rights as a customer of ODNB. It was ODNB responsibility and the responsibility of ODNB President, Darnell to notify Rivers that the loans were coming due and that the title had not been cleared and the Option on the riding center parcel had not yet been released. ODNB knew that the property title was clouded with CVLRs lien. On November 30, 2007 Rivers drove Wynne to ODNB to open a checking account for CVLR. Rivers had never been to ODNB in North Garden. Wynne could not drive. While there Rivers signed a signature card for the account which was now being named 1650 so that Wynne can also be named on the account. Rivers was told it was because 1650 and Wynne had financed the loan with ODNB but that Wynne couldn’t remove the funds without Rivers signature. The money for the account would come from the $25,000 start up loan. Rivers had been instructed to follow the commitment letter regarding keeping and providing files and financials to ODNB from CVLR business annually. Rivers agreed but would not agree to deposit CVLR funds in the account because she had accounts in Forest for the business. Rivers told Darnell her filing cabinet was always open to Wynne for review and she would provide him with anything he needed. They assured Rivers that Wynne could not remove funds without her knowledge or signature. 71.On March 18, 2008 Richardson, Advantage Title, once again sent a prepared Certificate of Satisfaction to Jenna at Planters bank and Trust, 2102 Langhorne Rd, Lynchburg, VA 24501 for the 18.35 Acres on behalf of the S&R Farms, LLC (Grantor) attempting to get a release on the property. CVLR has not, as of yet, signed or agreed to a release on the riding center property. Wynne, Mason, Beach, Thomas and Darnell all knew that the riding center property had a cloud on the title and ODNB had loans collateralized by property without clear title. ODNB had already extended the 1650 loans due date for Wynne and had not contacted Rivers or CVLR because they knew CVLR and Rivers had claims against them. They all had to figure out a way to get rid of Rivers and get someone else in the deal that would agree to be the income for the debt service. All Wynne had to bargain away was the .001% ownership interest he had over Mason and Thomas. 72.On April 23, 2008 Lester, in a fifth partial settlement and separation agreement, was ordered and agreed to take necessary steps to remove the lien/contract against the remaining S&R property held by Rivers and further warrant and save and hold harmless Beck for any consequences financial or otherwise because of said document. S&R couldn’t sell any remaining S&R Farms land without giving CVLR Right of First Refusal. S&R would lose money if it sold to CVLR. The Serene Creek Run HOA was screaming. S&R had to sell 75% of the remaining lots before the HOA could be a realization. Wynne couldn’t get CVLR to assign him the Option. Lester had tried several times over the years asking Rivers to Release the Option back to S&R. Lester had until June 23, 2008 to undo the Option. Rivers has adamantly refused. After Wynne and Rivers had a disagreement in April regarding fraudulent invoices and checks that had been issued to repair damage to a barn at the riding center, Wynne threatened to remove Rivers from 1650. On April 14, 2008 – Wynne wrote a letter to Rivers saying that, “If payments are not being made on a timely basis, and you were in default and I would expect that I am going to replace your management with my own employee…” Rivers replied that a term of the loan commitment form ODNB was that she be a member of 1650, that she was on the signature card of 1650 checking account, that she was a guarantor of 1650, and that Wynne could not simply remove her from 1650. Wynne replied that ODNB “will do whatever I tell them”. a). On May 15, June 3, 24, July 22 and September 5,2008 – Wynne faxed five forged letters to Hopkins of ODNB. Each letter was on the letterhead of Glen White, the contractor Wynne had suggested CVLR use for the barn repair job, and was signed with the initials “GDW”, and each letter requested payment of an attached invoice to John Wynne. The letters are forgeries, because they are handwritten by Wynne, but purport to be from Glen White, a license Class A contractor. The basis for Rivers belief that Wynne forged the letters is: (1) the instructions to pay the funds to Wynne are in Wynne’s handwriting, even though he signed the letters with Glen White’s initials; (2) all of Glen White’s handwritten fax cover sheets state “Please process this invoice for John L Wynne 1650 partners LLC”; (3) both Glen White and Terrance White were employees of Wynne, according to Wynne’s April 20, 2008 fax to Potter at ODNB, when Wynne wrote that “Terrance White…who has built for me over the last three years will be doing the repairs”; and (4) Terrance White deposited all of the checks with endorsements “For deposit only” to Rivermont Banking Co. b). At least two of the invoices are also false, claiming payment for work that was not done. The July 22, 2008 invoice was incorrect because it claimed “final clean up.” But all the debris was left on the site and was not cleaned up until CVLT expended its own cash out to pay her labor to finish the job. Rivers had discussed Terrance White’s fee to work on the jobsite and she was told that Wynne usually paid him $350 - $425 per week. CVLR agreed to pay that. Neither Rivers or CVLR ever received a invoice from G. White or T. White and had no idea that ODNB was receiving invoices and paying T. White. Rivers insurance company asked for the invoices before paying out the final check. Rivers asked T. White and G. White about invoices and they both referred her to the bank. Rivers called Hopkins and she referred Rivers to Wynne who had nothing to do with CVLR and had pulled White and the crew off the job site early leaving it a mess. The, September 5, 2008 invoice was false because it claimed “project completion,” but the job was never completed by T. White. c). When neither G White or T White completed the repairs to the barn, CVLR expended its money to complete the job. However, at Wynne’s direction, ODNB paid all of the $35,190.59 of CVLR insurance proceeds that it received on behalf of CVLR to T White, an employee of Wynne, after ODNB deposited CVLR insurance funds into a Catherine R Wynne Estate (Executor) account DDA #1010006856 even after being instructed by CVLR, their lawyer in a letter, and Rivers NOT TO PAY T. WHITE OR G. WHITE AND TO SUBMIT ANY AND ALL DOCUMENTATION AND INVOICES PERTAINING TO THE CVLR INSURANCE PROCEEDS AND THE BARN JOB AND TO PAY THE INVOICES THAT CVLR HAD SUBMITTED FOR THE WORK CVLR HAD DONE TO COMPLETE THE JOB. T . White endorsed each of the cashiers checks paid to him by ODNB to Rivermont. The funds should have been paid to CVLR, the named insured. Rivermont (which was solely owned by Wynne) and Wynne and 1650 had no claim on the insurance proceeds. 73.On August 24, 2008 Wynne faxed a letter to CVLR’s insurance company, without Rivers or CVLR permission or knowledge, claiming that he represented CVLR Performance Horses who owned the policy. The fax was on Rivermont Banking Company letterhead. RE: PSL 41619818CVLR-Claim, Wynne signed as president Rivermont Banking Co. Wynne was attempting to circumvent Rivers and CVLR receiving the remainder of the claim payment for $9800.00. Wynne had instructed ODNB, Darnell, Hopkins, and Potter not to give Rivers or CVLR anything 1650 or CVLR related to any accounts or business. Rivers had been asking for invoices and submitting CVLR invoices of her own but not yet seen any invoices from Glen White and had not been paid for CVLR’s invoices. 74.On August 26, 2008 Rivers emailed a letter to Wynne asking him to send the contractor final invoice. Rivers wanted to pay the property taxes, the well and finish the doors and the electric on the arena from the check. 75.On August 27, 2008 Wynne emailed Rivers threatening her if CVLR cannot support its’ end of the Deal (MOU) through its own cash flow, we will unwind the deal and get someone else in there. John. 76.On September 9, 2008 Wynne had prepared fraudulent invoices on Glen White Construction letterhead and faxed them to CVLR’s insurance company, without CVLR or Rivers knowledge or permission. The invoices faxed to Paatrick Rose had never been submitted to Rivers, CVLR or Rose for review or approval. Rivers had been asking for the invoices because American Reliable Insurance had requested the invoices from her! ODNB had already paid White even though Rivers had told ODNB not to pay anything out until she approved it and that the work had not been done and the contractors had left the jobsite and had not returned. Wynne attached 5 invoices including the final invoice for barn repair. ODNB had already paid the illegal, Glen White invoices to Terrance White; who signed the checks over to Rivermont Banking Co. Rivers insurance agent, Patrick Rose told Wynne that CVLR was the policy holder and CVLR had to submit all invoices before the insurance company could release the final insurance check and Wynne needed to be a representative of CVLR. The check would be payable to the policy holder. 77. On September 23, 2008 CVLR was negotiating the MOU and the closing of the loans between CVLR, Rivers, 1650, Wynne and Rivermont. Wynne, ODNB and Twery were still refusing to give Rivers any documents. Rivers needed the pay off amounts for the ODNB loans, the John Deere loans, the BB&T truck loans, and Rivermont loans. Wynne wrote Rivers and told her not to contact ODNB, John Deere or BB&T. Rivers had been paying $1976 every month since October 2007 and called BB&T to ask them to fax a pay quote to her lawyer. They did. The pay off amount was $94,630.87 good through October 7, 2008. Shock set in for Rivers. Wynne had always told Rivers she would get the loan documents and the title when she paid for the truck. Rivers called Maria at BB&T to get the pay off amount on the F650. Rivers realized when she received the loan documents faxed to her; that she didn’t own the truck, the loan with BB&T was for $104,000 not $60,000 and it was INTEREST ONLY, that there had been no $16,000 deposit paid, and there was not $27,000 trade in or any trade in!!! THIS IS THE EXACT SCAM USED IN THE F650 TRUCK DEAL. ODNB AND WYNNE NEEDED A CONTRACT TO PURCHASE, PERSONAL AGREEMENT TO PAY AS GUARANTOR, CVLR’S AGREEMENT TO PROVIDE INSURANCE. THEY NEEDED HER SIGNATURE TO COMPLETE THE SCAM. 78.On September 30, 2008 Rivers had been attempting to pay the CVLR mortgage loan interest payment and start up loan interest payment for $2496.00 by a wire transfer, from her bank, Bank of the James, Forest Virginia to ODNB. ODNB was having some sort of trouble receiving the transfer which was odd to Rivers. Finally after two visits and several attempts the wire went through to ODNB. Wynne called Rivers that next day demanding a late payment be made to ODNB. Rivers called Mary Lou Hopkins and asked about a late fee and she was told there was none! Rivers now knows that ODNB transferred $2454.17 from the 1650 checking account to the 1650 Loan account #12000500 as per John W! 79.On October 1, 2008 John Wynne FORGED Rivers name on a 1650 check #1020 and cashed it at the Bank of the James, Forest Virginia! The remitter was REIMBURSE FOR EARLIER DEPOSIT. The 1650 checking account had a dual signature requirement on file at ODNB. Rivers was not aware that 1650 also had a account in Forest Virginia. ODNB honored the check and allowed Wynne to obtain, by false pretense, from Rivers, with intent to defraud, money, and should be guilty of larceny. ODNB allowed Hopkins to change and alter CVLR and Rivers materials submitted to ODNB prepared and/or signed by Rivers and Rivers insurance companies pertaining to marketing, project parameters, insurance policies, etc. obtaining, by false pretense, from Rivers, with the intent to defraud, money, property that is the subject of larceny, and should be deemed guilty of larceny and also by false pretense, with such intent, the signature of Rivers to a writing whereby obtaining a profit, Hopkins and ODNB shall be guilty of a Class 4 Felony. VA Code 18.2-178 At the time Wynne forged Rivers name on 1650 check no #1020, Rivers was a member of 1650. ODNB paid the forged check in amount of $3000 even though it had Rivers signature card on file and knew that the signature was forged. This was an illegal act because it constituted forgery, a crime. At that point, Rivers and Wynne fell out. WYNNE USES OTHER BANKS AS CONDUITS FOR HIS ILLEGAL ENTERPRISE. 80.On October 10, 2008 Equine Insurance Specialists faxed a copy of a insurance application and a letter to Wynne explaining the procedure to Wynne if he wanted to obtain insurance and what he would have to do regarding the already existing policy belonging to CVLR. Rivers needed to be notified of the changes before EIS could begin coverage. Wynne, and ODNB, Darnell, Hopkins, Potter, and Goodale were desperate to get the CVLR Insurance Policy changed and somehow gain control over the proceeds from the claim. Wynne had applied with Rivers Commercial Equine Insurance Specialist attempting to become the primary on CVLR’s insurance policy. He needed to be 100% owner of 1650 before he could be the primary policy holder and he needed to prove notification of CVLR and Rivers notice of the changes. 81.On October 14, 2008 Wynne faxed American Reliable Insurance, Patrick Rose, CVLR’s insurance company, again asking questions about where the final check was. Rivers had spoken with Rose and he confirmed that the insurance proceeds belonged to CVLR. Wynne drove to the riding center and attempted to bully Rivers into giving him the final check. Wynne told Rivers ODNB was coming after her for extortion and embezzlement and the deal was off and he was going to Bedford County and filing a unlawful detainer against her. 82.On October 15,2008 Prior to October 15, 2008 Wynne and ODNB had treated Rivers as a member of 1650 and excepted all CVLR and Rivers mortgage payments for both loans that Rivers guaranteed personally. John Wynne wrote a hand written affidavit/statement saying, “I, JOHN WYNNE, MANAGER OF 1650 PARTNERS LLC HEREBY REMOVE CRYSTAL VL RIVERS AS SIGNATOR ON CHECKING #4010000106 AT OLD DOMINION NATIONAL BANK, NORTH GARDEN VIRGINIA” He signed it and had it witnessed by ODNB VP Mary Lou Hopkins. Hopkins never notified Rivers or CVLR. On that date, Darnell wrote and signed a Memorandum to Hopkins’s, entitled 1650 Partnership, which stated, “At the request of John Wynne, please remove Crystal Rivers from any and all business we have with the 1650 partnership. Mr Wynne states she has nothing to do with the partnership and is not to be a guarantor on any of the loans or a signer on any accounts,” even though ODNB had required Rivers to personally guarantee 1650 $500,000 debt to ODNB.WYNNE AND ODNB DECIDED TO REMOVE RIVERS FROM 1650 AND CVLR BUSINESS AND ACCOUNTS BECAUSE WYNNE WAS IRATE AND FURIOUS THAT RIVERS WOULDN’T GIVE HIM THE REMAINDER OF THE INSURANCE CLAIM PROCEEDS AND NOT DO WHAT HE TOLD HER TO DO. WYNNE WAS NOT USED TO THAT! give you anything 1650 either. We took you off the accounts and John Wynne asked to remove you from everything. Shortly thereafter—but after October 15—Rivers talked to Hopkins on the telephone. Rivers said she wanted CVLR loan statements and mortgage documents and 1650 checking account and loan information. Hopkins said, “I can’t give you anything CVLR.” Rivers then said, ”What about 1650?” Hopkins said, “I can’t give you anything 1650 either. We took you off the accounts and John Wynne asked to remove you from everything and we agreed.” Rivers said, ‘What about CVLR, am I still responsible for the note?” Hopkins said, “Oh, yes.” Rivers still didn’t know where her insurance money was or how she was going to get it. Wynne, Darnell or ODNB gave notice to Rivers of her termination from 1650, which was a violation of the 1650 Operating Agreement. a) On October 15, 2008 Rivers went to her lawyer’s office and contacted BB&T to have them fax over the loan documents for the F650 to her. Rivers learned that she didn’t own the truck, the loan with BB&T was for $104,000 not $60,000 and it was INTEREST ONLY, that there had been no $16,000 deposit paid, and there was not $27,000 trade in or any trade in!!! Neither, Darnell or Hopkins ever notified Rivers or CVLR. ODNB AND WYNNE ARE STUCK NOW. THEY CAN’T GET RID OF RIVERS AND CVLR JUST YET. CVLR HAS ANOTHER $8881.35 INSURANCE CHECK COMING. 83. On October 16, 2008 Twery faxed 2 pages to Rivers attorney, Mark Message: attached is the Articles of Organization which you requested. Rivers had never seen the document or even knew 1650 was a 2002 LLC. The Articles had not been changed or amended since they were dated and filed with the Virginia SCC 3/14/02 84. On October 28, 2008 Rivers attorney emailed her to let her know that Twery had just faxed over something randomly and they wanted her to see it ASAP. Twery had faxed a AMENDED OPERATING AGREEMENT dated November 20, 2007, it read that Wynne had been the sole manager since 2006, and ARTICLE VII 7.02 was altered and Wynne had initialed, read, “ the manager shall be John L Wynne, Walter G.” (the name Walter G was crossed out with John Wynne’s initial above it 85. On November 4, 2008 Rivers emailed Hopkins, again, reminding her of their last conversation whereby Rivers was informed by Hopkins that she was no longer on the 1650 mortgage, start up loan and checking account. Rivers contacted her attorney 86.On December 11, 2008, Rivers called and texted Wynne asking him to please bring the MORTGAGE STATEMENT to her. She hadn’t received it and was worried it would be late. Rivers asked Wynne to send it to her lawyer’s office for review. Rivers had called ODNB and Wynne but could not get them to provide her with the amount owed on the Commercial Loan or the accounting EXHIBIT 18 87.On or about December 11 or 12, 2008 – Rivers called ODNB and spoke with ODNB V.P. Hopkins, again. Rivers asked again about the MORTGAGE STATEMENT FOR DECEMBER. Hopkins reiterated to Rivers that ODNB had removed her from the MORTGAGE! Rivers was shocked and very upset. Rivers asked Hopkins why, when and how can you just take me off the MORTGAGE. Hopkins replied,” John Wynne asked us to and we agreed!” Rivers said,” But CVLR’s still responsible for the loan, right?!” Hopkins said, “Oh Yes!” Hopkins wouldn’t tell Rivers how much the amount owed for December was. Rivers mailed a payment of $2350 to ODNB equal to the amount she had paid to ODNB for November 2008 loan #12000500 interest and loan #12000600 after her conversation with Hopkins. 88.In January 2009 Wynne filed a frivolous unlawful detainer action against Rivers and CVLR for unpaid insurance proceeds. Wynne was a seasoned banker and knew Rivers and CVLR couldn’t have lawsuits or debt because of the SBA loan they had applied for. Wynne was demanding that CVLR give the insurance check to Wynne. Wynne told her ODNB was going after her for extortion and he would file a unlawful detainer action. 89.On February 19, 2009 Rivers and her attorney, Joey Sanzone met Wynne at the Unlawful Detainer hearing. Rivers agreed to sign the $8881.35 check over to ODNB in return for Wynne agreeing that there was a credit due to CVLR for overpaying the ODNB mortgage loan since October 2007. That meant CVLR wouldn’t have a mortgage payment due until May 2009 if they haven’t closed by then. CVLR would also be paid. Sanzone had arranged for his paralegal, David, to drive to ODNB that morning to present the insurance check, endorsed by CVLR, to ODNB if Wynne agreed to the terms and conditions and dropped the unlawful detainer action. Wynne called Mary Lou Hopkins and verified the paralegal was there. Wynne and Rivers agreed that the insurance check would pay CVLR for the invoices from CVLR for work that was completed on the property, namely, clean up, equipment rental, and well permit, pay for the well installation, and the lights installation. The remainder of the check should be deposited into the 1650 checking account. 90.On April 22, 2009 Wynne faxed 5 pages showing loan payments, he claimed were, due to Rivermont and ODNB and balances per previous conversations with Mark Donevant and Joey Sanzone. Wynne agreed for Rivers to take him out for $950,000 for land, equipment, notes and outstanding loans. RE: 1650 Partners LLC. I had to follow the contract as per the MOU. Sanzone and Baker were later fired by Rivers due a conflict of interest they had not divulged to Rivers. EXHIBIT 19 91.On April 23, 2009 ODNB prepared a Loan Presentation for Loan Renewal on the 1650 loans. Borrower: 1650 Principals: John Wynne Business: Equestrian Farm/Riding Stables Guarantor: John Wynne and James Wynne Mitigations: Due to the economic conditions today it would be wise for Mr Wynne to hold off on the sale of the property until there is market recovery. I know the property and have no reasons to believe there has been any significant decrease in value. In the near future a new LLC Winton Investments, LLC is being formed and Mr Wynne’s brother James will be included. It was signed by Darnell and Potter BOTH DARNELL AND WYNNE KNEW THAT RIVERS AND CVLR AND SCRHC WERE IN THE MIDDLE OF FINALIZING A $1.3 MILLION DOLLAR SBA LOAN AND NEEDED THE DOCUMENTS FROM ODNB AND 1650. THEY KNEW WHEN RIVERS BANK/LENDER SAW THE ACCOUNTING THAT THEY WOULD CONTACT THE APPROPRIATE AGENCIES. WYNNE, ODNB, MASON, THOMAS, AND BEACH ALL KNEW RIVERS WOULD OWN 100% OF 1650 AND ALL ITS ASSETS AND INTERESTS! Winton Investments is not a newly formed LLC. BMTW changed its name to Winton Investments (BMTW stands for Beach, Mason, Thomas and Wynne) Wynne refinanced 1650 debt to ODNB. Both ODNB and Wynne allowed Wynne to complete the transaction without Rivers consent or authorization, even though she was still a member of 1650. Wynne and ODNB acted as if Rivers was no longer, and had never been, a member of 1650. Wynne refused to allow Rivers to purchase his ownership interest in 1650 for $50,000, as previously agreed. a) In May 2009 Rivers began structuring her buy out of the MOU with Wynne. Rivers had investors that were ready willing and able to invest and guarantee construction and permanent loans in an amount of or about $1,300,000.00 for the CVLR/SCRHC Equestrian Center project. Rivers prepared SCRHC/CVLR Loan Acquisition 2010-2014 Objectives. The proposed income realized from SCRHC/CVLR would be used to exercise land options already in place for the remaining S&R Farms land and the private residence of Ralph Beck which was to be used for housing for LU team students and become the private residence of Rivers. Wynne and ODNB were kept in the loop and needed to provide Rivers and CVLR with the necessary documents requested by Rivers attorney and the lending institution b) On July 7th, 2009 Serene Creek Run and Rivers entered into a 3 yr Memorandum of Understanding with Liberty University. A package which included coaching, instructions to team members offering discounts to LU students, CSER hours, and the contact for any/all trail rides. c) On August 3, 2009 Rivers attorney, Mark Donavent, sent a Mutual Agreement and Option Contract, to Twery and Wynne which had been negotiated by Rivers attorney between Serene Creek Run Holding Company , 1650, and Wynne. The Agreement was in keeping with and mirrored the October 2007 MOU between Rivers, Wynne and 1650 and the understanding received by Wynne and Rivermont Banking on April 22, 2009 92.Between April 22 and August 20, 2009 Wynne and the “group” realized that Rivers could, in fact, honor the October 2007 MOU between Wynne, 1650 and Rivers and they began back peddling and threatened sanctions against Rivers, CVLR and Serene Creek Run Holding Co attorney Joey Sanzone due to his conflict of interest with Wynne and 1650 and the “group”. Beck and Lester also realized that CVLR was ready, willing and able to exercise its option to purchase the remaining S&R land, whereby, Wynne had not followed through with his end of the deal getting rid of Rivers and CVLR. Wynne refused to allow Rivers to purchase his ownership interest in 1650 for $50,000, as agreed in the MOU. 93.On August 20, 2009 Twery mailed a letter to Rivers informing her for the first time that he represented 1650 Partners and DEMANDED she sell her interest in 1650 Partners to Wynne and included “Finally, my clients do not consider the unsigned, incomplete document headed ”Memorandum of Understanding” to be an agreement at all, and not operative or dispositive of any issues between the parties. Twery and Wynne both knew that Rivers was ready, willing and able to exercise her contractual rights under the MOU and knew that if she did, Mason, Thomas, Beach and ODNB would all have claims against him. Wynne and Twery already knew that Rivers, CVLR had legal claims against him. This letter prompted Rivers to contact her lawyer and ask what she should do. Rivers went to the Bedford County courthouse and got a certified copy of CVLR’s OPTION TO PURCHASE AND FIRST RIGHT OF REFUSAL BETWEEN CVLR AND S&R FARMS. She did and was astonished when she found, not only the S&R/CVLR option but she found her DEED or WHAT SHE THOUGHT WAS HER DEED RECORDED IN THE COURT WITH THE NAME 1650 PARTNERS as grantee. Instead, on October 14, 2009, Rivers, Serene Creek Run Holding Co, Wynne and 1650 entered only into an “Asset Purchase Agreement,” whereby Wynne agreed to sell 1650 real property to Serene Creek Run Holding Co for $475,000, and to sell the other assets for designated amounts for a total of $975,000, to which Rivers and SCRHC agreed.(Joey Sanzone was adamant that Rivers not pursue 1650 and argued for over a month with Rivers to enter into a lease contract with Wynne. Sanzone told Rivers that the reason ODNB, Twery and Wynne didn’t want to give Rivers the documents she required was because they all knew she would go after them criminally. Sanzone promised that he would go after Wynne and ODNB criminally later if she would enter into the new Agreement. CVLR PERFORMANCE HORSES NEVER ENTERED INTO THE ASSET PURCHASE AGREEMENT. RIVERS LATER LEARNED THAT SANZONE HAD A CONFLICT OF INTEREST WITH WYNNE AND THE MEMBERS OF 1650 AND FILED A COMPLAINT WITH THE VBA.) Only at that time did Rivers agree to release her ownership interest in 1650, and she was required by Wynne to release her interest in 1650 as a condition of his agreement to sell her the assets of 1650 for $975,000.CVLR WAS NOT NAMED ON THE ASSET PURCHASE AGREEMENT. CVLR HAD NEVER RELEASED ITS OPTION ON THE RIDING CENTER PROPERTY. The riding center title was clouded by the CVLR lien. The asset agreement was NULL AND VOID, incomplete, not valid or binding because it fraud induced and was missing exhibits. Wynne and ODNB knew 1650 and Wynne could not produce clear title. Wynne also was not 99% owner of 1650. Wynne and ODNB needed Rivers signature in order for the refinancing of the loan with Wynne’s brother, James Wynne to go through making James Wynne the new income for the debt service on the loans. Wynne still could not insure the F650 truck which CVLR had removed from her Farm Commercial Insurance Policy when she found out she had been scammed out of ownership and crimes had been committed that she would address later. As of August 26, 2009 Rivers company, CVLR averaged profits of $13,116.50 per month. CVLR suffered a steady decline in profits after CVLR learned that it would not be able to purchase 1650 only for $50,000 and that Wynne would sell the assets of 1650 only for $975,000 (and that ODNB and 1650 would not release the financial and other information necessary for Rivers to borrow $975,000) because Rivers started winding down CVLRs yearly contracts and business after September 2009. Rivers started winding down the business because she was concerned that Wynne would evict her from the property and she did not want to have horses on hand that she could not care for if she did not have a place to stable and pasture them. Rivers operation of CVLR business at the riding center increased the appraised value of the real estate from $618,500 in 2007 to $966,500 in 2009. Rivers, corporation, CVLR, as the owner of Serene Creek Run Riding Center, had a thirty year lease, with a ten year rollover term, with the Serene Creek Run Homeowners Association, which would have allowed it to operate the riding center for forty years. Rivers was the named homeowner on the addendum to the S&R/CVLR Purchase Contract. CVLR was named as the Purchaser in the same Purchase Contract. However, as a result of Wynne, Darnell, Hopkins, Potter, Beach, Mason, Twery, Thomas and ODNB conspiracy with each other to cut Rivers out of 1650, to prevent Rivers from purchasing Wynne’s ownership interest in 1650, and to prevent Rivers from purchasing the assets of 1650, Rivers corporation, CVLR, lost net profits in the amount of $5,849,847.50 and an undetermined amount for the loss of the benefit to purchase 1650 Partners. The accounting and historical finances have never been divulged to Rivers. Rivers would have owned 1650 from 2008 until today unless Wynne had bought her interest out in January when she sent the demanded offer which was good for 30 days. Wynne did not buy her out and members can not give their interest away. Rivers was damaged in the total amount of $5,849,847.50 which is calculated as the sum of the lost equity in the property of $118,500.00 as of November 20, 2007, lost net profits in the amount of $5,849,847.50 without the additional damages of the loss of owning 1650 Partners which will be determined by accounts and financial experts. Rivers knew that Wynne and Rivermont and ODNB knew that they were being investigated and Wynne and ODNB, Beach, Mason, and Thomas could not give her the documents she required for the SBA loan due to the crimes they had committed. Wynne, Darnell, ODNB, Thomas, Mason and Beach were senior veteran bankers and knew better than anyone that the bank and the regulatory agencies would catch them INSURANCE FRAUD, MONEY LAUNDERING, FORGERY, AND BANK FRAUD. 93.A SUBPOENA FOR MULTI JURISDICTIONAL GRANDJURY WAS ISSUED & SERVED ON OLD DOMINION NATIONAL BANK ON 12-7-10 EXHIBIT 18A 94.On January 7, 2010 ODNB was issued SUBPOENA FOR WITNESSES, PAPER, DOCUMENTS AND OR OTHER TANGIBLE TNINGS BEFORE THE: MULTI-JURISDICTIONAL GRAND JURY EMPANELED AT THE CIRCUIT COURT OF THE COUNTY OF BEDFORD, VIRGINIA AT THE BEDFORD COUNTY COURTHOUSE ON FRIDAY, FEBRUARY 4, 2011 AT 10:00 AM. The subpoena was signed by Commonwealth Attorney Mark Robinette. For the production of ODNB associated with the accounts of Wynne, 1650 and loan accounts 12000500 and 12000600. 94A. SUBPOENA FOR A MULTI JURISDICTIONAL GRANDJURY WAS ISSUED & SERVED ON SOUTHGATE LEIGH WYNNE TRUST ON 1-18-11 EXHIBIT 18B 94B. Another victim and I met with Mary Lou Prilliman at the Criminal Division of the IRS, Roanoke and took her our documents. I had been directed to Mary Lou from the Lynchburg FBI. EXHIBIT 20 95.On February 10, 2010 ODNB prepared and agreed to a Loan Presentation for Wynne, Borrowers:1650 Guarantors Wynne and his brother, James Wynne to consolidate loan 12000500 in amount of $473,679 with loan 1200600 in amount of $23,528. 3 yr ARM. P&I based on 25 yr amortization. Cash flow of James Wynne, 1st DOT on Serene Creek Run Riding Center and release 1st DOT on Wynne’s 1884 Holcomb Rock Rd, Lynchburg, VA property. Rivers or CVLR were never informed. Wynne and James Wynne signed the entity authorization as members of 1650 and the guaranty. a)On February 19, 2010 A HUD 1A form used for a 1650 closing was Optional Form for Transactions without Sellers. The HUD was signed by both members, whereas, CVLR was kept from signing the November 20, 2007 HUD at her closing being told she had signed for CVLR. a) On February 10, 2010 The Lenders Certificate of Insurance issue date was 9-10-09, Policy #700-6702M224-TIA-09 (different from CVLRs’ November 20, 2007 issued policy), Named insured was 1650, Policy Period was 10-20-09 to 10-20-10 and the Insurance Company was Equine Insurance Specialists. The policy included a equine professional which Wynne could have never received legally. Wynne was not a equine professional. The policy had been written without any notice to Rivers or CVLR that Wynne would now be the Primary Policy Holder on the riding center. CVLR was still paying for a $159,000 loss of business. CVLR paid for a $1,000,000 professional equine liability policy covering ODNB as the loss payee until October 14, 2009. ODNB never notified Rivers or CVLR to remove ODNB as loss payee. CVLR had a fire at the riding center arena in October 2009 which put CVLR out of business for over 6 months. Equine Insurance Specialists and Travelers refused to pay CVLRs’ $159,000 loss of business claim because Wynne was now the primary on the insurance policy! Rivers had no idea what they meant by that until she learned about the new policy in place taking precedence over hers b) On February 10, 2010 Wynne submitted and ODNB accepted, fraudulent 2008 1650 income tax documents from Wynne for the closing. Wynne’s K1 showed his ownership interest in 1650 was 100% and it was, in fact, not. Rivers was still .01%. Wynne, Thomas, Beach, Mason, Darnell, Hopkins, Potter, Twery and ODNB knew that the State of Virginia, the Bureau of Financial Institutions and the OCC were investigating Rivermont and ODNB. They had to make sure Rivers and CVLR didn’t get any documentation. Twery was the closing lawyer and Advantage Title provided the same Land America Policy from the November 20, 2007 closing. File #CT1001043 Policy #K61-0004877. Richardson also owned the title company, Colonial Title. Twery, Wynne, Richardson, ODNB and Darnell all knew that any other title company besides Richardson’s’ would not issue title insurance because they would read the title search and find that the S&R/CVLR option had not been released and 1650 did not have clear title. c)On February 10, 2010 ODNB, Wynne, Mason, Thomas, Beach, Darnell, Hopkins, Potter, and Twery knew that SCRHC and Rivers were under contract with 1650 and Wynne to purchase the riding center and pay off all debts to Wynne, ODNB, Rivermont and 1650. 1650 did not have permission to use a property that was under contract for any business other than that of CVLR or Rivers as per the MOU. 96.On May 24, 2010 CVLR;s attorney, Sanzone, emailed a copy of the JGA letter to Rivers reminding her that the 1650 Partners tax information is going to be required due to your historic ownership interest in the company as identified in corporate documents reviewed during the due diligence process. Under rules regarding affiliated businesses, we must review and provide said documents to our funding source prior to commitment. Twery was well aware that Rivers and CVLR needed and had a right to 1650 and CVLR documents, accounts and financials. However, Wynne and ODNB, Twery, Darnell, Potter and Hopkins refused to provide any 1650 historical and present documents or financial information to Rivers or to Rivers financial consultants, or attorney, even for the period when there was no question that Rivers was a member of 1650, which was the proximate cause of Rivers failing to obtain financing to purchase 1650 real property for $475,000 and the other assets for designated amounts, for a total of $975,000 EXHIBIT 21 97. On June 4, 2010 Rivers signed the CIT Proposal Letter . The terms and conditions were subject to satisfactory completion of credit investigation and analysis, Lender Credit Committee approval, approval by the US SBA, satisfactory documentation, and such other terms and conditions as are determined by Lender and SBA. The Borrower was Serene Creek Run Holding Company, Loan Amount was up to $1,337,133.00, Guarantors were Rivers and Investors Petraglia and Schiefer, Collateral secured by 1st Insured Mortgage on the riding center and 1st security interest in all assets of Borrowers business, CVLR, Documentation required Verification of equity injection, acceptable personal credit, complete financial package, and the following of all SBA regulations. 97A. On June 28, 30 and July 7, 2010 Old Dominion National Bank directors, all, agreed that The Comptroller of the Currency had, in fact, found unsafe and unsound banking practices relating to inadequate capital planning; inadequate strategic planning; high levels of problem assets; an inadequate Allowance for Loan and Lease Losses (ALLL); inadequate problem loan identification and loan review; improper accounting for non-accrual loans; weaknesses in concentration monitoring; and weaknesses in the Bank’s contingency funding plan. #2010-157 EXHIBIT 21A 98. Sometime in June or July 2010, Rivers and a renter and associate, Sunny Cooper, met with Ralph Beck at the riding center to discuss CVLR exercising its option on all the remaining S&R Farms land. Beck knew that CVLR/SCRHC were negotiating a SBA loan and would be moving to acquire the remainder of the land as the remaining phases of the CVLR Serene Creek Run Equestrian Center project 98.A. On July 29, 2010 ODNB announced their opening of a new police “Satellite” office which they footed the bill for the facility, which is directly above its North Garden branch. It features a bathroom with shower, exercise room, office and conference room. The bank pays for the continued upkeep dn utilities for the facility., 99. On September 22, 2010 Rivers received word that her SBA Form 912 had been cleared for processing and disbursement. EXHIBIT 22 100. On September 23, 2010 Rivers and her attorney received a email letter from Joe Amato of JGA informing them that the 912 clearance would have long-term value for Rivers beyond this single loan request. The loan package needed to be signed and dated again with a up to date signature and date. Rivers had still not yet received much needed and required 1650 documents financial and ODNB account documents for Rivers, CVLR and 1650. Wynne came to the riding center to harass Rivers and Rivers began taping their conversation. In the conversation, Wynne told Rivers, “ I didn’t think you were good for 1650 anymore and ODNB had taken her off the mortgage because they got sick if her asking questions and bugging them and he agreed to it. IT DIDN’T HURT YOU DID IT!?” When reminded that Rivers owned the property because she had a contract Memorandum of Understanding, Wynne replied, “ Yes but it’s not signed, it’s not signed is it.” 101. On September 27, 2010 Rivers and her attorney received a emailed letter from Joe Amato of JGA informing Rivers that the final approval cannot happen until the documentation they required was sent and received. The loan was halted and CIT opted out of the loan. 102. On October 25, 2010 Rivers received a 7a Real Estate Loan Proposal from Wells Fargo who had bid on the acquisition loan. The Borrowers were Serene Creek Run Holding Co and CVLR Performance Horses, Loan amount was $1,258,700.00 SBA (a) Guaranteed Term Loan. Lease Agreement: CVLR entered into a lease agreement with SCRHC, the documentation required was much the same as CIT but more stringent. EXHIBIT 23 (b) On December 15, 2010 I FILED A COMPLAINT WITH THE VA BUREAU OF FINANCIAL INSTITUTIONS EXHIBIT 24 103.On January 18, 2011 Twery, attorney for Wynne, 1650, Rivermont Banking, BMTW and SGLWTT, was interviewed telephonically by Virginia State Police, Special Agent James Vaughan, regarding Wynne’s business relationship with Rivers, owner of Serene Creek Run Farm and Riding Stable. Twery set a date for a interview for Wynne at Twerys’ office 104. SGLWTT was also issued SUBPOENA FOR WITNESSES, PAPER, DOCUMENTS AND OR OTHER TANGIBLE THINGS BEFORE THE: MULTI-JURISDICTIONAL GRAND JURY EMPANELED AT THE CIRCUIT COURT OF THE COUNTY OF BEDFORD, VIRGINIA AT THE BEDFORD COUNTY COURTHOUSE ON OR BEFORE FRIDAY, FEBRUARY 4, 2011 AT 10:00 AM. The Subpoena was signed by Commonwealth Attorney Mark Robinette on the same day. 105.On January 20, 2011 Virginia State Police Special Agent James Vaughan went to ODNB and was presented with documents. One of the many documents Vaughan received was a BancPac account system printout of James and John Wynne accounts. It listed #DD4010000106 1650 checking and it had been Locked out-Inactive/Not assigned with a balance of $630.00, #LN230010000 1650 Serene Creek Run Riding Center Note $491,520.44 Revolving with a undisbursed amt of $5686.86 Due $3466.61 on 12/21/10, #LN12000500 1650 Commercial Loan and it had been closed and purged on 3/1/10 with a $0 balance, #12000600 1650 Start Up Loan and it had been closed and purged on 3/1/10 with a $0 balance, and #DD1010006856 (Executor) Catherine R Wynne Estate Personal Interest Checking and it was Closed and Due to be PURGED on this day 1/20/11 Office: Charles Darnell. The 2nd of many documents presented to Vaughan was a ODNB print out of 1650 Partners LLC Insurance Proceeds & Disbursements which showed the two checks Rivers hand delivered to ODNB on 4/7/08 and endorsed to be deposited in the 1650 checking account that required both Rivers and Wynne’s signatures. The document listed 5 invoices received and 5 checks paid to T White. It also listed the check hand delivered by Sanzone’s paralegal on February 19, 2009 Payable to CVLR/ODNB for $8881.35 and a payment to Terrance White for $6837.49 check #1658. It listed a balance to DDA #1010006856 1650 Partners LLC/per atty instructions $2043.86. That DDA account was the (Executor) Catherine Wynne Estate account and it was NOT THE 1650 ACCOUNT CVLR HAD INSTRUCTED ODNB TO DEPOSIT THE TWO CHECKS IN ON APRIL 7, 2008 NOR WAS IT WHAT CVLR INSTRUCTED ODNB TO DO PER HER ATTORNEY LETTER HAND DELIVERED AND AGREED TO BY PHONE BY MARY LOU HOPKINS ON FEBRUARY 19, 2009. ODNB, IN FACT, ILLEGALLY DEPOSITED CVLR PERFORMANCE HORSES, INC INSURANCE PROCEEDS, WITHOUT HER PERMISSION OR KNOWLEDGE IN AN ACCOUNT OWNED BY CATHERINE WYNNE ESTATE (EXECUTOR) FOR THE BENEFIT OF 1650 PARTNERS. Mary Lou Hopkins told Vaughan that account was the general ledger and they put the insurance proceeds in that account because CVLR wasn’t a customer. The list did not include ANY of the CVLR invoices but ODNB was able to provide UNLEDGABLE copies of the CVLR invoices to Vaughan. The copies were copied in such a way that you couldn’t see the letter head or signature of CVLR! 106.On January 21, 2011 As per the Amended Operating Agreement received October 28, 2008, Rivers mailed a 1650 Partners LLC Member Offer of $6,150,475.00 to Twery, Mason, Wynne, ODNB and Sanzone that was good for 30 days. Rivers believed that her only position left was that as a member of 1650. Rivers had been told by SAA Bill Talbert that CVLR must have “assigned” its purchase contract to 1650 because it was the only way they could have done this deal. There was a assignment clause in the S&R/CVLR Purchase Agreement Contract but NEVER a assignment. If CVLR had of assigned the Purchase Agreement Contract to 1650, it would not exculpate ODNB as a defendant. The assignment would not completely vitiate the complaint. 107.On February 1, 2011 Seth Twery, attorney for Wynne, was interviewed the 2nd time by Virginia State Police Special Agent James Vaughan. Twery, under MULTI-JURISDICTIONAL GRAND JURY SUBPOENA, produced documents subpoenaed for Wynne relating to Southgate Leigh Wynne Testamentary Trust. The documents obtained from Twery were provided for inclusion into the case file for case 10-86-02-1050 a) On the same day, Rivers and CVLR received a letter from Joe Amato of JGA informing her, that the Wells Fargo loan for SCRHC/CVLR had been halted until the 1650 Partners tax, loan and corporate information/documentation was received. These documents were required to establish right of title and the historic ownership interest in the company and subject property. The SCRHC Asset Purchase Agreement had not included Exhibits A or B and was null and void and invalid. EXHIBIT 25 108. On February 14, 2011 Twery admitted Exhibit B into evidence. The exhibit was titled AMENDED OPERATING AGREEMENT OF 1650 PARTNERS LLC. The Agreement had November 20, 2007 as the date. Article VII 7.02 Read The Manager. The Manager shall be John L Wynne. THE DOCUMENT HAD BEEN ALTERED AND WAS NOT THE SAME AS THE AMENDED OPERATING AGREEMENT FAXED TO RIVERS ATTORNEY ON OCTOBER 28, 2008 AND WAS NOT THE SAME AS THE DOCUMENT RECOVERED FROM THE THE SUPBOENAS TO ODNB, WYNNE AND TWERY BY THE COMMONWEALTH ATTORNEY FOR THE MULTI JURISDICTIONAL GRAND JURY 108A.On February 22, 2011 CVLR and Rivers filed their Complaint for Breach of Contract, Extortion, Embezzlement, Usury, Coercion and Fraud case #CL11005616-00 against Wynne, Rivermont Banking Co, 1650, Twery, James Wynne and ODNB. The case had been reinstated and non-suited. 109. An unlawful detainer action hearing was held on February 28, 2011 at the Bedford County Circuit Court. Twery LIED to the Court and Honorable Judge Updike and said, “I object again. If we’re going down that road, I’ve talked with the Commonwealth’s Attorney and there’s no investigation” 110.On or about March 1, 2011 Rivers, Karen Foster and Suzanne Schiefer went to Richmond to meet with Locke Trigg at Banks and Savings Institutions Dept at the Bureau of Financial Institutions. (The Bureau is governed by the Virginia General Assembly) Rivers and Foster and other victims had been writing and calling the Bureau complaining about Wynne and Rivermont Banking Company scamming them and wanted their help to stop it. While meeting with Trigg, the group of victims was told, by Trigg, that they were very aware of the complaints and they were also very aware of Wynne and his Rivermont Banking Co activity and that they had “BEEN WATCHING HIM FOR A LONG TIME BUT WEREN’T READY TO DO ANYTHING YET!!” Trigg sent them on their way after Rivers sighted VA Code 6.2-938 and 939 and a host of other banking regulation violations for Trigg to note. Trigg sent them on their way telling them to contact their Commonwealth Attorney and to keep him informed of any new information. Rivers explained that she had already reported the scam to the VA State Police and Mark Robinette but she was told they couldn’t investigate the matter because The Bureau had a ongoing investigation 111.On February 22, 2011 Vaughan interviewed Eugenia B Goodale, SVP Operations and Compliance Officer ODNB “Ms Goodale related that Ms Rivers did not have an account at ODNB so funds received from the insurance company (checks made out to CVLR Performance Horses, Inc and ODNB) were placed into a holding account. She related that 1650 Partners owned Serene Creek and Mr Wynne was the manager of 1650 Partners. He and Ms Rivers approved disbursements for the contractor who was making repairs to the property. After the bank President (Darnell) visited the property and examined the damages, disbursements were approved and vouchers paid as they were received from the contractor. Ms. Goodale indicated this procedure was followed until bank personnel received instructions not to correspond with, or talk to Ms Rivers relating to 1650 or CVLR issues, and to release insurance money received by CVLR to the 1650 Account.” Ms Goodale was informed by Vaughan that the property owner (1650) did not hold the insurance policy on the property. Information received from Patrick Rose, Property Claims Supervisor for American Bankers Insurance Company of Florida indicated that CVLR was the loss payee for the policy and 1650 had only a liability interest on the insurance policy. Also Ms Rivers stated essentially that she wrote the bank and requested that they stop making payments to the contractor, because he was not doing the work on the property and he was diverting finds and materials to another location. EXHIBIT 27 112.Up until March 2011 – Rivers had never seen or viewed her November 20, 2007 closing documents and learned that Advantage Title would have her closing documents. Rivers called Jennifer Richardson of Advantage Title and asked her to prepare a file for her closing documents for her to pick up. Rivers took a friend, Karen Foster, with her to pick up the files. Richardson was not at the Advantage office. Rivers found The Credit Line Deed of Trust that was delivered to Advantage Title and Closing was prepared and typed up for the November 20, 2007 closing. Rivers remembered the CLDOT was present at the closing. Wynne had initialed it and signed it. Jennifer Richardson notarized Wynne’s signature. Rivers saw only a portion of the document that said Deed of Trust and asked, “What about CVLR?” Wynne replied, “You’ve already signed for CVLR.” The CLDOT had been altered and John Wynne’s name had been added to the Grantor column and recorded since November 20, 2007. Rivers was very upset and called Richardson and asked if she could come back to her office to discuss the documents. Karen Foster went with Rivers. Rivers wanted to know why Wynnes name had been hand written on the CLDOT. Richardson was very nervous. Rivers thought this was her DEED! Rivers told Richardson she wasn’t going to leave unless she explained how, when and why and what instrument did she have telling her to put Wynne’s name on the document. She came back out of the back of her office and brought the ODNB Commitment Letter dated October 29, 2007 and signed by Wynne and Rivers. She handed it to Rivers. She told Rivers the bank told me to. Rivers looked at the Commitment Letter and told Richardson, “ That is not my Commitment Letter!” Richardson said, “Yes it is!” Rivers said, “ No it’s not, 1650 Partners name wasn’t on it when I signed it!” Richardson said, “Well that’s what they gave me.” 113.On February 18, 2011 Special Agent Vaughan interviewed Patrick Rose, Property Claims Supervisor for American Bankers Insurance co of Scottsdale AZ telephonically. “Rose related the insurance policy for Serene Creek was issued to CVLR Performance Horses c/o Crystal Rivers. The loss payee on the insurance policy was CVLR and the mortgage holder was ODNB. Only these entitles were authorized to access funds supplied by the insurance company to pay for damages suffered by the insured. He opined that the bank could be civilly liable if it released insurance proceeds to an unauthorized party, or the other party could be guilty of a criminal act if funds were obtained by making false statements to the bank.” ODNB knew that Wynne couldn’t get insurance. They knew it from the start. CVLR had a commercial wrap around all in one policy and it included the trucks, trailers, land, equine professional liability, hazard, etc. Wynne was not a professional in the equine industry, he had a DUI record and he couldn’t be named on the DEBT SERVICE the way the lending was structured. ODNB knew Wynne couldn’t get insured unless Rivers agreed to sell her interest. EXHIBIT 28 113A I faxed more documents to Judith Jessee, Attorney Generals office and Locke Trigg regarding the Wynne and Rivermont investigation EXHIBIT 26 114.On March 22, 2011 A photo copy of a ODNB cashier’s check #1438 for Ten Thousand Three Hundred Fifty One dollars and thirty five cents ($10,351.35) was issued to Terrance White Remitter:1650 Partners Dated: 7/23/08 and signed by Hopkins. The check was signed by T White Deposit to Rivermont Banking Co #6401620. The check was, in fact, deposited in John L Wynne personal Bank of the James account #06401620 on July 28, 2008. The check #1438 was listed in the 1650 Partners LLC Insurance Proceeds and Disbursements presented to Vaughan on on or about 1/20/11 115.On March 22, 2011 Virginia State Police Special Agent Vaughan interviewed Wynne. Wynne stated, “He was the manager of 1650 partners LLC and Ms Rivers was a minor partner in the company. 1650 Partners owned Serene Creek Run Farm and Riding Stable a property Ms Rivers wished to purchase and on which she conducted a business (CVLR) Wynne related that insurance money was received to repair storm damages on Serene Creek, and the checks were made payable to ODNB and 1650. He then corrected himself and stated checks were payable to CVLR and ODNB; however; the funds were specifically intended for making repairs to Serene Creek and there was a Memorandum of Understanding with Ms Rivers regarding us of the funds by 1650. Wynne denied taking any funds through false pretense or misusing any of the funds received from the insurance company.” EXHIBIT 29 116.On March 22, 2011 Special Agent Vaughan interviewed Mary Lou Hopkins, VP ODNB Ms Hopkins related “ Mr Wynne was a bank customer since 11/20/07; he was never an officer for the bank and he was never on the ODNB board of directors. He had a mortgage on his Lynchburg property, for which he provided the bank a copy of his insurance policy. To Ms Hopkins knowledge, Mr Wynne was the sole owner of 1650; however, she had heard that he and Ms Rivers were dating, and he apparently gave her a small share in the company. Ms Rivers did not have an account at ODNB, so funds received from the insurance company (checks made out to: CVLR and ODNB) went into a General Ledger Account. Based on estimates from the insurance adjuster, and on-site confirmation by the bank President (Darnell) that the repairs were performed satisfactorily, disbursements were approved and paid from the CVLR account as vouchers were received from the contractor.” Ms Hopkins indicated this procedure was followed until Mr Wynne instructed bank personnel not to correspond with Ms Rivers regarding 1650 or CVLR issues, and to release insurance money received by CVLR to the 1650 account. Since he owned the company (1650) that owned Serene Creek, and Ms Rivers was only a renter on the property, after she was removed from the partnership the bank was obligated to follow Mr Wynne’s directions. Ms Hopkins stated Mr Wynne submitted a copy of his insurance policy for the property; she provided for review a copy of an insurance policy issued to 1650 c/o John Wynne by Travelers Indemnity Company of America. She also provided copies of six Cashiers Checks written to Terrance White to pay invoices for repairs made to serene Creek. The Remitter on the checks was noted as 1650. Vaughan pointed out to Ms Hopkins that the damage to Serene Creek occurred in February 2008, but Mr Wynne’s Travelers Insurance policy (issued on 9/2/09) was for the period 10/20/08-10/20/09. This was several months after the damage occurred and CVLR held the insurance policy on the property at the time. EXHIBITS 30-41 SCOTT GARRETT WAS VERY FAMILIAR WITH WYNNE, MASON, THOMAS AND GARRETT WAS VERY FAMILIAR WITH THE BANKING AND FINANCE BUSINESS (a). On May 1, 2011 – Rivers and other victims of Wynne’s scam met at a local Lynchburg T Party meeting at Liberty University. Rivers and the other victims had made arrangements to meet Scott Garrett at the meeting to discuss the issues they were having with the Commonwealth Attorneys in Lynchburg and Bedford and to share the issues regarding the insurance fraud and illegal banking enterprise they were being victimized by. Rivers left the meeting with the impression that Garrett did not know Wynne, Beach, Thomas, Mason, 1650 or Rivermont Banking Co. Garrett, to the contrary, in fact, has known Wynne, Beach, Mason, and Thomas since before he became a 1998/1999 NON DIRECTOR AND SHAREHOLDER OF COMMUNITY FIRST BANK, with 7400 shares subscribed and went on to become a DIRECTOR affiliated with Select Bank to which CEO/Thomas and Mason are employed. Garret went so far as to tell the group that he didn’t know anything about banking or finance. Garrett, on the contrary, in fact, was elected to the Virginia House of Delegates in November 2009 and represents Virginias 23rd House District, Delegate Garrett serves on the Finance-Subcommittee #2, Transportation-Subcommittee #2 and 4, and Health, Welfare and Institutions-Subcommittee #1. Garrett does not list Community First Bank in his bio. (b) On May 11, 2011 I faxed new information to Maureen Stinger, Counsel with VA Bureau of Financial Institutions. I had just received a copy of a proceeds check from my S&R/CVLR Purchase closing which proved that Wynne was funneling money into Rivermont Banking Co without my knowledge. EXHIBIT 42 117.On June 12, 2011 – Rivers was evicted from her home and her corporation, CVLR from the riding center property, destroying her equestrian business that she had spent the last 7 yrs building breeding, lessons, hay, cutting, instruction, camps, teams, IES, IHSA, marketing, birthday parties, boarding, facility rental, horse shows, weddings, pony rides, trail rides, and anything the customer wanted equine related. CVLR PERFORMANCE HORSES, INC, CVLR HAY, CVLR HAULING, CRYSTAL RIVERS AND SERENE CREEK RUN RIDING CENTER VACATED THE PROPERTY AND MOVED TO THE 16 ACRES BEHIND THE FARM THEY HAD BEEN RENTING SINCE SEPTEMBER 2007 FROM RALPH BECK 118.On June 27, 2011 The Commonwealth of Virginia SCC/BFI Commissioner of Financial Institutions, E.J. FACE, Jr. wrote a letter to Wynne REMINDING him the SCC records indicate that you have reinstated the corporate status of the above referenced corporation in Virginia. As you know, Virginia law prohibits a corporation from beginning or conducting any banking business until it has obtained a certificate of authority, or charter, from the SCC pursuant to 6.2-816 of the Code of Virginia. To date, neither the Commissioner the Bureau of Financial Institutions has received an application from Rivermont Banking Company for a certificate of authority to conduct banking business in Virginia. If you do not intend to apply for a charter, please notify the Bureau as such and indicate when you intend either to dissolve Rivermont Banking Company, or file amended Articles of Incorporation that change the name of the company to remove the word banking and change the purpose of the corporation to something other than a bank and trust company.. Further please keep in mind that holding oneself out to the public as a bank without a charter is a violation of Virginia Code 6.2-939, which carries criminal penalties. Wynne later changed the name but submitted the original April 06 Articles of Incorporation without changing the name or purpose of the company. Blatantly in violation of 6.2-939 and 6.2-938 EXHIBIT 43 (a) On July 7, 2011 Wynne filled out the forms to change the name of Rivermont Banking Co to Rivermont Consultants BUT submitted the exact same 2002 Rivermont Banking Co Inc Articles of Incorporation ignoring the Bureaus instructions to amend the Articles if he wasn’t going to make application with Bureau to be a VA State Bank. EXHIBIT 44 (b) On July 26, 2011 The State Corporation Commission found the accompanying articles submitted on behalf of Rivermont Consultants Inc (formerly Rivermont Banking Company, The) to comply with the requirements of law, and confirms payment of all required fees. Therefore, it was ORDERED that the CERTIFICATE OF AMENDMENT be issued and admitted to record with the articles of amendment in the Office of the Clerk of the Commission, effective July 26, 2011. The Corporation is granted the authority conferred on it by law in accordance with the articles, subject to the conditions and restrictions imposed by law. Signed for the STATE CORPORATION COMMISSION by James C Dimitri, Commissioner. Wynne did not, in fact, amend or change the 2002 Articles. He was now operating a illegal bank with the new name Rivermont Consultants Inc. EXHIBIT 45 119.On August 26, 2011 Melvin E Tull sent a email to VBA Executive VP T Rann Paynter, John Bowers, Matthew J Bruning and Bruce Whitehurst Subject: Rivermont Banking Co stating, “Looks like Rivermont is on our site as an associate member under “Financial Institutions” and “funding and Capital Sources” VA Code Section 6.2-939 prohibits companies not authorized to engage in the banking business from using the words bank or banking in their name, signage or other written materials to advertise themselves as a bank. I’ll look to see if there is anything in the public record about lawsuits or complaints against Rivermont or John Wynne. The Virginia Bankiers Association publications are advertised throughout the entire State of Virginia. They work closely with the Bureau of Financial Institutions. 120.On August 26, 2011 – VBA Executive VP T. Rann Paynter sent a email to Melvin E Tull, John Bowers, Matthew J Bruning, and Bruce Whitehurst RE: Rivermont Banking Co stating, “Joe Face confirmed that Rivermont was requested to change its name since they ARE NOT A BANK OR IN BANKING. I have a call into John Wynne for his new name. I’ve spoken with Ms. Rivers twice, thanking her for bringing this to our attention.” EXHIBIT 46 121.On September 8, 2012 CVLR Performance Horses, Inc filed a Federal Civil Action in the United States District Court for the Western District of Virginia v Wynne, Rivermont, 1650, Advantage Title, ODNB, Beck, Lester and S&R, Case No 6:11-cv-00035. The Cause of Action was 18:1962 Racketeering (RICO) Act, Nature of the Suit was 470 Racketeer/Corrupt Organization. EXHIBIT 47 (a) On April 2, 2013 Gary Bowman, attorney for CVLR and myself, wrote a letter, unbeknownst to me, the client, to US Attorney, Timothy Heaphy, addressing a issue he had with Assistant US Attorney, Pat Hogeboom, III, and he AGREED TO TERMINATE HIS REPRESENTATION OF ME!! EXHIBIT 47A (b) On April May 29, 2013 Before TRAXLER, Chief Judge, SHEDD, Circuit Judge, and David A FABER, Senior United States District Judge for the Southern District of West Virginia, sitting by designation, Reversed the CVLR RICO/RACKETTERING case and remanded it to the district court for further proceedings consistent with the court’s decision. The CVLR RICO case is the first ever in the State of Virginia to WIN!! And be reversed by the appellate court. EXHIBIT 48 122.On February 24, 2014 Rivers and CVLR settled the RICO/RACKETERING ACTION against Wynne, 1650, and Rivermont Banking. Rivers and CVLR agreed to dismiss them all from any civil litigation. (a) On April 13, 2013 CVLR filed its Breach of Contract case #CL13000183-00 against S&R Farms, LLC, Beck and Lester describing the loss of the benefit of the bargain to purchase the 138.32 acres of property, which has a market value of 448,000.00 per acre of between $55-62,000 per half acre if subdivided. The case is pending in the Bedford County Circuit Court. (b) On October 3, 2013 I received a letter from DeMarion Johnston, Counsel for VA Bureau of Financial Institutions, informing me that Wynne had complied with the Bureau on July 26 and he had NOT been in compliance on March 7, 2011 when I filed my complaint EXHIBIT 49 (c) On August 5, 2013 I filed WITHDRAWEL AND RETRACTION OF STATEMENTS IN THE LYBCHBURG AND BEDFORD COUNTY COURTS REGARDING STATEMENTS I MADE IN FILINGS FROM WHAT I HAD BEEN TOLD PRIOR TO THE FILINGS. EXHIBIT 49A (d).On March 10, 2014 CVLR filed its Breach of Contract and Lost Profits case #CL14000130-00 against S&R Farms, LLC, Beck and Lester describing the loss of profits and the loss of the benefit of the bargain to buy the property (e) Gary Bowman wrote a letter to Randy Krantz, Bedford County Commonwealth Attorney, informing him that Wynne was found NOT to have been in compliance with VA Code 6.2-939 EXHIBIT 50 123. On August 25, 2014 I received a response letter from Mark Robinette, Bedford County Commonwealth Attorney, EXHIBIT 51 (a) On September 9, 2014 I wrote a letter to Timothy Heaphy, US Attorney, asking for the reason he had suggested that my attorney make arrangements to dismiss CVLR RICO Case and not represent me. I copied the letter to Pat Hogeboom and Judge Robert Ballou, Roanoke EXHIBIT 52 (b). On October 10, 2014 Rivers met with Beach at his home in Goode, Va. Rivers wanted to know about Beach’s involvement with 1650 and Rivermont. If Beach didn’t know anything she thought he had the right to know that she had found his name on 1650 documentation used to scam her and CVLR out of their riding center and business. Beach denied ever signing anything for or with Wynne or 1650 after they sold CFB. He told Rivers he had lent Wynne @$287,000 but Wynne had paid it back. Beach told Rivers he, Mason and Thomas didn’t have anything else to do with Wynne since the sale of CFB and that they had grown tired of his unprofessionalism at the bank. Rivers mentioned the RICO case and the ODNB case she had filed against 1650, Rivermont Banking Co and Wynne. He said he didn’t know anything and had not heard anything. He laughed at Rivers. Beach bragged about playing cards on certain nights with Judge Mosby and other prominent men in the community but Wynne was never there. Rivers asked him if he could arrange a meeting with Thomas and Mason so Rivers could get to the bottom of it because she needed to know the truth or call them all as witnesses. He said he would talk to Walter “Chip “ Mason. 124. On October 20, 2014 Rivers ran into Beach at the Lynchburg City courthouse. Beach told Rivers he had spoke with Mason and he would not meet with her. Beach did remember maybe being Wynne’s 52% beneficiary on Wynne’s insurance policy back then because he had lent him @$285,000 but he had paid it back. He didn’t seem to thing Mason or Thomas would meet with Rivers. Rivers told Beach she had called them both again but they wouldn’t talk to her. They told her to talk to Wynne. 125.On December 30, 2014 Rivers texted Beach to thank him for being so helpful and asked if, instead of coming as a witness for her case, would he be willing to sign a affidavit. Beach texted back that he had too much on his plate to get involved. 126. Rivers operation of CVLR business at the riding center increased the appraised value of the real estate from $618,500 in 2007 to $966,500 in 2009. Rivers, corporation, CVLR, as the owner of Serene Creek Run Riding Center, had a thirty year lease, with a ten year rollover term, with the Serene Creek Run Homeowners Association, which would have allowed it to operate the riding center for forty years. Rivers was the named homeowner and HOA on the addendum to the S&R/CVLR Purchase Contract. CVLR was named as the Purchaser in the same Purchase Contract. HOW THE ILLEGAL ENTERPRISE CAUSED INJURY TO RIVERS BUSINESS 127. The intentional acts of Wynne was intended to, and did, injure Rivers CVLR Equestrian Center project and business because it deprived CVLR from the benefit of owning the riding center property and denying Rivers the historical insurance, finance, mortgage and loan accounting information necessary for her to buy Wynne out and ultimately destroying her business. 128. Rivers business at the riding center increased the appraised value of the real estate from $618,500.00 in 2007 to $966,500.00 in 2009 129.As of August 20, 2009 (when 1650 demanded Rivers sell her interest in 1650 Rivers refused and they began negotiating an Asset Purchase Agreement, and Rivers discovered that her business would be evicted from the riding center property if she did not pay Wynne the “buy back fee” he demanded without giving her the necessary documentation), Rivers had learned that her business, CVLR, did not truly own the riding center it had been paying for, it learned that 1650 Partners did. CVLR averaged profits of $13,116.50 per month. CVLR suffered a steady decline in profits after CVLR learned that it would not be able to purchase 1650 for $50,000 and that Wynne would sell the assets of 1650 only for $975,000.00 (and that ODNB, Twery, Wynne and 1650 would not release the insurance funds, the mortgage, loan documents and other historical information necessary for Rivers to borrow $975,500.00 from Wells Fargo) because Rivers started winding down CVLR’s business after September 2009. Rivers started winding down the business because she was concerned that Wynne would evict her from the property and she did not want to have horses on hand that she could not care for if she did not have a place to stable and pasture them and she didn’t want to take on anymore yearly client contracts knowing she might not be able to honor them. 130 .Rivers’ business, CVLR, as the owner of Serene Creek Run Riding Center, had a thirty year lease, with a ten-year rollover term, with the Serene Creek Run Homeowners Association, which would have allowed it to operate the riding center for forty years. 131 As a result of Wynne being able to operate a illegal bank and perfect his scheme. Wynne was able to prevent Rivers from purchasing 1650 or the property of 1650, Rivers business, CVLR, lost net profits in the amount of $5,849,847.50 and an added amount that will need to be established after 1650 provides financials, agreements, assigns, subordinate agreements, participating lending agreements, and year end reports, net worth, stocks, interests and asset lists from November 20, 2007 to today’s date 132 As a result from Wynne’s scheme to prevent Rivers from purchasing 1650 or the property of 1650, Rivers was damaged in the total amount of $6,316,347.50 which is calculated as the sum of the lost equity in the property of $466,500.00, 2007, plus lost net profits in the amount of $5,849,847.50 plus the undetermined amount of the assets of 1650 since November 20, 2007 EXHIBIT 53 PRAYER FOR RELIEF WHEEFORE, I pray that the Virginia General Assembly House Ethics Panel will commence an investigation into State Delegate, Scott Garrett, Commissioner, Joseph Face, Jr, Commissioner James Dimitri, Executive VBA/VP Rann Payanter and US Assistant Attorney Patrick Hogeboom, III actions and activities, adjudicate any violations of ethics rules or laws, and render any other such relief that the Virginia General Assembly House Ethics Panel deems just and equitable. Respectfully Submitted, CRYSTAL VL RIVERS By:_______________________ STATE OF VIRGINIA CITY OF LYNCHBURG Sworn to or affirmed and signed before me on May _____, 2015 by Crystal VL Rivers personally and who produced proof of ID ______________________________ NOTARY PUBLIC _____________________________ NOTARY PUBLIC