Thursday, September 19, 2019

PUTTING THE “SCREW” IN SCRUTINY: Documents Fly In Full Spectrum Management Chapter 7 Bankruptcy Case; Indepdendent Bank Pressing Mark Noss For “All Correspondence or Other Documents” Relating to $925,000 Loan

Independent Bank is delving into the mystery stinking up the effort by Mark Noss to discharge $766,925 owed by his Full Spectrum Management, LLC to the bank.

On May 7, Noss was subpoenaed, and ordered to provide Independent Bank with a dirty laundry list of documents related to his 2014 assumption of nearly $1.0 million owed by convicted felon Steven Ingersoll to Traverse City State Bank (TCSB). Independent Bank inherited the mess when in it assumed control of TCSB in 2018.

Noss filed a Chapter 7 bankruptcy petition February 19, 2019 on behalf of Full Spectrum Management.  Full Spectrum's Summary of Liabilities exceeded $1.0 million, with the lion's share ($766,925) owed to Independent Bank.

A hangover of Steven Ingersoll's plundering regime at the Grand Traverse Academy's, the massive debt reflects a deal Noss made in 2014 with Ingersoll (and Traverse City State Bank's Dan Stahl) to personally assume repayment of Ingersoll's delinquent $989,825 line of credit debt.

Federal court records for the case reveal Independent Bank filed a response yesterday, September 18, to a subpoena to a produce documents. It's unclear from yesterday's filing what documents were requested from the bank, but it's likely the focus was Full Spectrum's attempt to discharge a high, six-figure debt.

Although there are no new recent developments to report, the bank's effort to gather information that would likely bolster a potential adversary proceeding against Noss/Full Spectrum, barring him from escaping repayment of the massive debt.

I broke down the nearly $400,000 paid by Noss to Ingersoll, expressed them as monthly amounts and expressed that amount as a percentage of Noss's Full Spectrum Management's monthly fees — and the results are shocking.

For example, Noss paid Ingersoll $54,950 in September 2014, 78 percent of his monthly fee.  Three months before, in June 2014, Noss paid Ingersoll nearly $30,000 or 42 percent of his monthly fee.

(Noss was fired from his Grand Traverse Academy management perch in June 2017, after assuming control of the charter school in April 2014. Noss was paid a management fee set at 9 percent of the school's revenue, a deal done with the blessing (or written “approval”) of TCSB's Senior Vice President Dan Stahl. 

Annual reports issued by the Grand Traverse Academy reveal Noss was paid at least $850,000 each year for the years ending June 30 2015, 2016 and 2017.)

There is one murky exception to the rule: a $54,358.41 payment facilitated by Noss, and made on June 1, 2015 from a secret Grand Traverse Academy/PNC Bank account to one of Ingersoll’s personal Chemical Bank accounts. 

Now that's one I'd like investigated...really investigated. The amount was purported to be fees paid to Ingersoll, revenue said to be due resulting from his privately-run daycare facility, run on-site at the Traverse City charter school. (There was never any explanation for the nearly 14-month payment delay, post Ingersoll’s March 2014 departure.) 

Will we finally get to the bottom of this mystery, in bankruptcy court?

If you hide a dead fish behind the drywall, it's going to stink up the place until it's removed.

Time to tear open the wall, and retrive that dessicated acquatic vertebrate.