BREAKING NEWS! Government filing reveals Steve Ingersoll used $704,000 from a Chemical Bank loan to repay part of his debt to the Grand Traverse Academy!
COMPLETE REPORT FRIDAY!
According to the government, the federal fraud case against Steven Ingersoll began in 2009 when Ingersoll "caused another charter school that he owned or controlled—the Grand Traverse Academy—to advance him funds that need to be repaid."
A stinging 26-page decision filed late yesterday in Ingersoll's fraud case revealed that "Counts 6 and 7 of the Superseding Indictment relate specifically to those advances" and Ingersoll's personal income tax treatment of those Grand Traverse Academy-related transactions in 2009 and 2010.
And the document revealed the shocking allegation behind Ingersoll's indictment (shocking to everyone except Miss Fortune, who nailed it mere hours after the indictment was unsealed on April 10): once Ingersoll fell too far into debt—at one time owing three to four million dollars to the Grand Traverse Academy—it became necessary for him to repay the indebtedness in "another way".
And that "way"? Count 1 in the federal fraud indictment alleges that Ingersoll used the bulk of the $934,000 in diverted bank construction loan proceeds to "reduce his indebtedness to the Grand Traverse Academy".
And one more thing—while the government had previously stated its position that "Steven Ingersoll misused his authority to improperly advance himself funds from the Academy", yesterday's filing revealed the government considered the Grand Traverse Academy's practice of reflecting those advances in fiscal audits as "accounts receivable" as "prohibited by law".
COMPLETE REPORT COMING FRIDAY!