It seems like the best way to make everyone happy here is to introduce more tags.

If there were an "in default" tag, we could all agree that Patrick deserves this tag. Unlike the term scammer, there is no question of blame here. It is a simple fact.
If you introduce a tag like this, you allow more leeway for people like Patrick. The "in default" tag might not satisfy MPOE, but it would probably satisfy almost everyone else.

If one tag seems unjust, there could also be an "imprudent lender" tag. There is no question of blame here. It is a simple fact that the MPOE's loan to Patrick was imprudent.

Readers could draw there own conclusions about which tag is more meaningful.

Joel, would you support the use of those tags?