Saturday, June 23, 2018

COOKING UP A NEW CON? Robert Buckhannon's Colorado Business, Spartan Medical Ltd., Finds A Second Home In Michigan

BREAKING NEWS! Robert Buckhannon, Michigan's infamous “crooked chiropractor”, wants to relocate to Colorado.

Mix a nearly scot-free chiropractor, a disbarred Colorado attorney and a mysteriously revived business, and what do you get?

A new recipe for fraud?

Find out Monday, June 25!

Tuesday, June 19, 2018

BREAKING NEWS! Indicted Grand Blanc Investment Adviser Jason Bescoe Michigan Securities Registration Revoked; Final Order Also Revokes Registration Of Bescoe's Firm, Research Money Managment, LLC

As Sally explained to Linus in the classic, "A Charlie Brown Christmas," all she wants is what's coming to her. 

Today, Michigan's Department of Licensing and Regulatory Affairs (LARA) delivered what was coming to Jason Bescoe when it pulled the proverbial football away from Grand Blanc's shiny-scalped Ponzi schemer—issuing a Final Order revoking his registration as a Michigan investment adviser representative and the registration Research Money Management, LLC (RMM), Bescoe's investment adviser firm.

In a news release issued this afternoon, Julia Dale, Director of LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL), stated “the Michigan Uniform Securities Act (the Act) prohibits dishonest or unethical practices in the securities industry. Our bureau will continue to take strong regulatory actions to protect the public. Consumers should always have a clear understanding of long- and short-term investments and the risk involved. Frequently monitor your investments to avoid any potential for substantial losses.”

An investigation by CSCL found evidence that Bescoe and RMM failed to update their registration applications and public disclosure information, as required by the Act and the terms of their conditional registrations; engaged in fraud in the provision of investment advice; unlawfully accepted custody of client funds; convinced investment advisory clients to transfer approximately $300,000 to an entity not registered under the Act to perform the promised services; and, made multiple and repeated false statements to CSCL in registration documents, public disclosure documents concerning Bescoe’s outside business activities, and quarterly reports and other documents and information required to be submitted as part of their conditional registrations. 

The investigation led CSCL to issue an Order to Cease and Desist; an Order Summarily Suspending Investment Adviser and Investment Adviser Representative registrations; and a Notice of Intent to Revoke Investment Adviser and Investment Adviser Representative registrations against Bescoe and RMM. 

Bescoe is the managing member and the sole employee of RMM. CSCL also made a criminal referral to the appropriate law enforcement authority. Bescoe and RMM admitted to all of the allegations in the Notices of Intent and Orders of Summary Suspension, and Notices and Orders to Cease and Desist, agreeing to the revocation of their respective registrations. The revocations are effective immediately.

Bescoe was arraigned on August 19, 2017 on a felony charge of embezzlement of $100,000 or more, a 20-year felony. Later, on September 6, 2017, Bescoe was charged with intimidating a witness and assault and battery. Proceedings in those cases continue.

You're a blockhead, Jason Bescoe!

RAIN ON THE "FIRE SALE" Buyer Backs Out Of Bay City Academy's Former Madison Avenue Campus Sale

BREAKING NEWS! Bay City Academy's Madison Avenue building back on the market!

A spokesperson from LASTBIDrealestate.com confirmed in an email yesterday that the high bidder “backed out and we couldn’t come to an agreement”. 

The building sold on May 2 via auction for $198,000.

The building's current owner, Chemical Bank, is expected to relist the property.

Monday, June 18, 2018

UNBALANCED SHEETS? With $1.5 Million Balloon Payment Looming In August, Grand Traverse Academy Climbs Slippery Slope To Solvency

Roughly eight hours after I published a story on June 13 revealing the departure of several teachers from the Grand Traverse Academy, which also questioned the charter school board's seeming delay in releasing its 3rd quarter financials, the documents popped up on the Municipal Securities Rulemaking Board's public information site.


Here are the documents: a Balance Sheet as of March 31, followed by the Profit & Loss Budget vs. Actual report (July 2017-March 2018).

On the Balance Sheet, the Total Equity (or fund balance) is pegged at $366,056.63 as of March 31, 2018; based on the the Grand Traverse Academy board's fourth 2017-2018 revised budget, the final fiscal year ending fund balance is projected to be $491,365. 

My in-depth analysis will appear tomorrow, June 19.
Here are the Profit & Loss statements:

Wednesday, June 13, 2018

GRAND TRAVERSE ACADEMY SHOWS SEVERAL TEACHERS THE DOOR? Indeed.com Postings Indicate An Early June Schoolhouse Cleaning

Although charter schools don't call it firing when teachers are not given a contract to return, it appears the annual school year-end event culled roughly five teachers from the Grand Traverse Academy herd.

In addition to replacing a longtime music teacher who was promoted to a Secondary Principal spot at the Traverse City charter school, postings on Indeed.com indicate multiple openings, including Special Education, Spanish, Math and Science.

Even after four budget revisions during this fiscal year, the Grand Traverse Academy board is still facing serious financial issues, previously detailed on this blog: Financial Kinks In The State Firehouse, Setting Sail On A Sea Of Red Ink and Cold Spring, No Harbor.

After years of utilizing intentionally misleading financial projections to hide the Grand Traverse Academy's inability to maintain the minimum reserves covenant legally required by its $16.2 million 2007 municipal bond, the charter school's board is facing the likely possibility of another budget deficit, fueled in part by the refinancing required by an August 2018 $1,521,277 balloon payment on a $2,330,00 PNC Bank loan.

However, the board has apparently opted not to file FY 2017/2018 third-quarter financial statements issued in early May on the Municipal Securities Rulemaking Board's municipal bond disclosure data site, EMMA, making it impossible to determine whether or not the negative net income trend from the GTA's first two quarters continues.

As of December 31, 2017, the school had a -$105,151 negative net income, and projected total equity at $86,212.

And that was an improvement over an even more negative 1st quarter, with its -$467,998 negative net income.

On October 26, 2017, the Traverse City Record-Eagle quoted GTA accountant Steve Peacock, stating “an existing bond issue also requires GTA to keep its general fund balance at about $700,000. Those reserves – pegged to rise this year to $191,000 – should grow or officials risk bondholders demanding new management, he said.” 

Like they say, follow the money.

Saturday, June 9, 2018

I DO, I DO, I DO, I DO! Serial Monogamist Robert Buckhannon Ties The Knot...Again!

BREAKING NEWS! Robert Buckhannon, Michigan's infamous “crooked chiropractor”, marries for the fourth time.

A document filed this week (June 7) in Buckhannon's federal fraud case claimed Buckhannon wanted to move from Las Vegas to “domicile in Colorado” where he has a job with a pharmaceutical company.

Looks like Buckhannon has already been doing some (ahem) 'domiciling' in the Centennial State...with a new wife, the fourth Mrs. Buckhannon (but who's counting?).

According to Jefferson County, Colorado records, Buckhannon applied for a marriage license on April 2, 2018 to marry Olga Churilova Borisovna. The records, shown below, reveal Buckhannon and Borisovna married the same day. (Gee, it's almost like Buckhannon knew he wouldn't be going to prison!)

Jefferson County is Buckhannon's former Colorado stomping ground, where he lived in this 4,000 square foot Morrison home.

Buckhannon defaulted on the home's mortgage, and the property was later sold by the bank with these disclosures: “This Gorgeous-Executive Home Is On An Amazing Lot With Incredible View Of Denver and The Red Rocks. Property Needs Alot Of Work To Update To Neighboring Million Dollar Homes. No Carpet, A/C and Tile Work Is Not Complete.”

Buckhannon's checkered marital history, detailed on this blog (Serial Monogamy In The Cereal City, and Secret 121 Day Marriage), is matched only by his equally checkered financial history.

And there's news on that front, too!

Clark County, Nevada court records reveal Buckhannon recently defaulted on a subprime auto title loan, stiffing Credit Acceptance Corporation for $14,215.96. An affidavit of service for the March 27, 2018 civil complaint was filed on May 3, 2018. 

Like they say, a leopard doesn't change its stripes!