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Saturday, April 18, 2015

RENT (NOT THE MUSICAL): Chemical Bank Quietly Files "Assignment of Rents" Against Bay City Academy Mortgage; Protection Against Imminent Ingersoll Default?

UH-OH! ARE VULTURES ALREADY CIRCLING?

Chemical Bank, the financial institution holding the Bay City Academy's $1.8 million dollar mortgage, quietly filed an "assignment of rents" document on April 10 against the charter school's 400 N. Madison Avenue property and an adjoining parcel at 412 N. Madison owned by Steven Ingersoll.

Assignment-of-rents is a provision in a deed of trust or mortgage. The clause entitles the lender (in this case, Chemical Bank) to collect rents from the mortgaged property in the event of default by the borrower. This clause provides that during such default, all rents and incomes from the secured property will be paid directly to the lender to help reduce the outstanding loan balance. 

During Ingersoll's federal fraud trial, Randall Keinbaum, an Assistant Vice President and commercial lender at Chemical Bank, testified about Steven Ingersoll's Bay City Academy construction renovation loan.

Keinbaum said the $1,802,000 loan included two distinct phases: a twelve-month construction loan (interest only) that would convert to a post-construction mortgage with payments including principal and interest.


When asked by the prosecutor about the United States Department of Agriculture's involvement, Keinbaum stated that the bank required a guarantee from the USDA to enter into the loan agreement with Steven Ingersoll due to agreement's "unique collateral".

Keinbaum explained that a property like Ingersoll's converted church carried more risk than a "square-box office building" if the bank ever foreclosed on the property and attempted to sell it to recoup its investment. Citing the "limited pool of interested people" who might purchase the Madison Avenue property, Chemical Bank required a USDA guarantee to make the loan to Ingersoll.


Keinbaum stated that, according to the loan documents, "rental income from the management company running the school" would fund the mortgage payments.

Smart Schools Management (owned by Steven Ingersoll) would pay rent to the Bay City Academy (owned by Steven Ingersoll), which would use the revenue to pay the Chemical Bank mortgage loan.


Or not!

With a 26 percent drop in student enrollment at its Bay City campus, Ingersoll's Bay City Academy may not survive long enough to provide Chemical Bank with those tax payer-generated "rent" payments.

USDA, Line 2! 

Now, about that guarantee...

"Lien" on me, says the IRS to the Bradleys:


51 comments:

  1. So the bank required the taxpayer's (USDA) to guarantee Ingersoll construction loan? Are you f***ing joking?

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  2. No joke, just fact. According to testimony during Ingersoll's trial, Chemical Bank required a guarantee from the USDA to enter into the loan agreement with Steven Ingersoll due to agreement's "unique collateral".

    A bank official explained that a property like Ingersoll's converted church carried more risk than a "square-box office building" if the bank ever foreclosed on the property and attempted to sell it to recoup its investment. Citing the "limited pool of interested people" who might purchase the Madison Avenue property, Chemical Bank required a USDA guarantee to make the loan to Ingersoll.

    And there you have it.

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  3. When the USDA has to pay the Chemical bank loan off - which we all know Ingersoll took the funds - does he just get another tax liability for "loan payment" made by USDA? He has he own Ponzi scheme with one source of tax dollars after another with Ingersoll ripping off agency after agency.

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    1. According to government during opening statements, the construction line of credit loan was to transition to a mortgage after one year and the USDA backed the loan, guaranteeing an 80 percent payback of the $1.8 million to Chemical Bank if things went sideways. I'm not certain about any Ingersoll tax liability for a potential USDA loan payout.

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    2. Debt forgiveness is suppose to be a taxable income. IRS debt stays in bankruptcy. The property transfer make sense from that bankruptcy idea. It seems like this will be in court forever. How do convicted felons get to walk around town for six months before sentencing? How much more fraud and asset disposal?

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    3. Convicted felons with enough money to pay for a legal defense team, that's who. And the State of Michigan will shovel nearly $6 million dollars into the Bay City Academy this year. How much more "fraud and asset disposal" remains...like they say "How much you got?".

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    4. All the money can not be up for grabs. Do they pay staff? Put the lights and heat on? There is just so little money for things to make school interesting it is a shame it is going into shoes for Debbie.

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  4. I do not know how either of the Ingersoll's can go out in public. Why would anyone go to their bed and breakfast in Bay City? Why give these idiots any more money? I did notice on her web page for the Webster house she is DeborahI. Is she embarrassed about her last name or another method of hiding criminals are profiting if you stay there?

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    1. Why would anyone go to their bed and breakfast or for that matter enroll their child/children in their school? Probably because of the super slick marketing techniques -- superb photos, well-written script (just like the excellent 'image' for their Bay City Academy with their website). They have probably paid people very well to really market both the B & B and the charter school. It's interesting they don't post the bottom-of-the-barrel scores for their school. They avoid that like the plague. Also, most people are probably from out of town and don't know the Ingersoll story of fraud and deception. If she previously signed her full name as Deborah Ingersoll and now signs simply Deborah L, she could very well be embarrassed about her last name and any connection to her husband. Then of course, if people asked or found out, she probably would say it was all a 'government plot' to prevent them from promoting Bay City and offering educational choice, and that the government was after them, or the millions of underreported income were all a 'misunderstanding' like their attorney's claim about the IRS 'misunderstanding' the flow of the construction monies and Mr. Ingersoll was really being a philanthropist. Or maybe she's practicing 'Choice Theory' on which the school bases part of its curriculum, and she chose to not mention her last name because she secretly doesn't want to be associated with him now that he's been convicted. Who knows with those scoundrels! But you can bet your bottom dollar that it's ALL ABOUT IMAGE... or should we say deception?

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    2. I do think the government had a plot. The government wanted the Ingersoll's to follow the law. Accurately report their income. Stop stealing from schools. Do not run off with federally guaranteed money. You know - the government plot was to make the Ingersoll criminals play by the law.

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  5. So she's "Deborah"? You mean like "Cher"?

    ReplyDelete
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    1. DEBORAHI. - I think she is trying to hide the Ingersoll part from the business.

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  6. Responses from Webster House B&B are from DeborahI when it used to be Deborah Ingersoll. The listed owner of the B & B is Deborah Ingersoll - where did Steven go. Is it a marketing ploy or has he "slid" his interest in this property to his wife? The Webster House website seems to be hiding the Ingersoll involvement/ownership.

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    1. Doesn't seem to have hurt business!

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    2. There seems to be some business issues. The B&B has specials listed for room rentals. Maybe the rooms are open without being able to charge the schools. Won't the law firm own this property once the mortgage does not get paid?

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    3. They do rent rooms. It seems that Brian Lynch, the BCA superintendent, only gets his room during the middle of the week. There could be guests there while he stays there too. Don't know if Ingersoll charges Mr. Lynch when he stays there as his BCA employee, or whether it's part of the 'package' that he gets for driving all the way from up north. And who knows, maybe Ingersoll and Noss (Lynch's father-in-law) have made some cozy financial arrangement so that Ingersoll gets money secretively when he's in prison (for his IVL curriculum license, etc.) But it looks like there's no question, they're keeping as much money "All in the family."

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  7. What? They have rooms available? Figured keeping the room for Brian Lynch and charging the fees to SSM would make enough money for dear Deborah. Certainly, she could also charge another room out for Noss' grandchild and then, somehow change Full Spectrum.

    Perhaps the "good woman" is starting to worry about how she will support her lifestyle if Stevie ever makes it to jail.

    On a side note, does anyone know the status of the enrollment at GTA? It's the first year that they have flags out advertising the enrollment period. In past years, classes were at capacity or spaces available were so few that a lottery was required.

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    1. After the Bay City Academy folds, Brian Lynch will no longer need to bunk in at the Webster House. He'll be enjoying that new home he bought ten days ago on the Old Mission Peninsula.

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    2. You just never know with the Ingersolls, do you!? Who knows, maybe she'll want to get some ministerial credentials so they could rent out the old Madison Avenue Methodist Church campus, use it for a wedding, and then with her new ministerial credentials, she could charge for officiating at the ceremony? Maybe she/they'll start a new business for themselves - St. Debbie's?

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    3. That is funny.

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  8. I think their enrollment at the GTA is still pretty good and that unfortunately because of less than desired media coverage in the Traverse City area, many people still have their students/children there. But maybe they're hurting from the deficit that dear Mr. Ingersoll caused with all his prepayments and hurting from the board's continued negligence.... Hopefully, a forensic audit will really cure enrollment and the school... cure it so much that it will close!

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    1. Closure of both schools would be wonderful and educational. Message to students is that educational dollars should not support criminals.

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    2. The most press GTA received in the past year was the whooping cough epidemic that closed the school down for a week. The woman at TCAPs who just got 9 months for stealing thousands got more press from the Record Eagle. The paper and TV station are horrifically quiet about Ingersoll stealing millions.

      Up North Progressive

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  9. Chemical bank is a for profit business. Chemical bank makes the profit on the loan. Instead of having to absorb their loss on a business decison made by bank officials - the USDA is going to pay off the Chemical bank? Do they make these type of loans because the taxpayer holds all the risk for the Chemical bank profit? Everyone knows this was just Ingersoll ponzi scheme. Disgusting.

    ReplyDelete
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    1. According to testimony, the USDA backed 80 percent of the mortgage loan, with Ingersoll required to put up 20 percent equity. Chemical Bank only approved the mortgage after the USDA guaranteed a repayment in the case of Ingersoll's default.

      As for Chemical Bank's rationale for making the loan ("the taxpayer holds all the risk"), you'd have to ask a bank officer.

      Somewhere, Ponzi's rolling over in his grave!

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    2. Do you think Chemical bank is making a move to get into the federal line of debt? The USDA must have rules on how they handle properties. Wait until they try to figure out the tangled shell games to collect. There has to be a bank board and loan officers who are reviewing his application and paperwork with different results today. Chemical Bank does not like these type of public mistakes.

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    3. I'm not certain how that would work. In the event of Ingersoll's default on the Bay City Academy property, the USDA would pay off Chemical Bank and they'd be stuck with an empty church.

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    4. Government stuck with an empty church or Chemical bank? If USDA pays off Chemical Bank would Ingersoll have to prove the money "loan" went into the property? Or could USDA go after Ingersoll for fraud against the USDA? Let's hope he never gets out of the cell.

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    5. Would she pay rent?

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    6. I think Ponzi is amazed how far and how long it can go on. There is not a prison term long enough for Ingersoll. Fifteen years would just put a dent into the schemes.

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    7. Maybe she would have to, with the new Chemical Bank loan modification for them to receive the rents? Don't know if that is already in place (to pay rents directly to Chemical Bank), or if it kicks in should Ingersoll fall behind in his loan payments. Maybe they'd give her a deal (so they could recoup their money)?

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    8. As I stated in this post, if Ingersoll defaults on his mortgage loan payments, Chemical Bank can directly collect rents from the school. However, if the Bay City Academy's charter is revoked, there will be no rent...and no payments for Chemical Bank.

      It's only then that the bank can begin the process to have its losses covered by the USDA.

      Once Ingersoll defaults, it will be in the bank's hands. Deborah Ingersoll will not have any involvement in the property.

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    9. Thank you, Miss Fortune. You just wonder if June will be the last days of the Bay City Academy. And you also wonder if LSSU revokes Ingersoll's BCA charter will Ingersoll's buddy, Mr. Noss try to get a new charter from LSSU or some other entity (that's after the 3-4% oversight fee) and then want to buy or rent the Madison Arts campus from Chemical Bank and even the Farragut campus from the Traverse City law firm and the primary mortgage holder? Who knows, they could be talking big time right this hour about such schemes (oops...I mean plans!).

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    10. First, the Bay City Academy charter runs through June 2016. LSSU is in the process of reviewing the BCA to determine whether or not to renew. If LSSU revokes the BCA's charter, it's deader than Rand Paul's chance to get elected President next year.

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    11. It should be revoked 6/30/15. If LSSU does not have the sense to close the Bay City academy down - parents should have the sense to get their kids out of there.

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  10. Did you see the GTA Board meeting minutes from March? Noss attended via phone. He has placed a right of first refusal on the property adjacent to GTA!

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    1. During its February meeting, the GTA board approved a motion allowing Noss to sign and execute that letter of intent with the current owner of the 80-acre property.

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    2. If this school is so broke as reported to the state - another USDA loan to expand the campus? How else are they going to buy 80 acres? These thieves never stop.

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  11. Does Mr. Noss attend GTA board meetings as the Full Spectrum managment company and the overseer of the GTA? What if the board wants/wanted to dicuss something such as looking for another managment company (even for the future after his management contract would be up), or if they wanted to discuss the test results and for poor performance wanted to remove Full Spectrum as the management company? What would happen if /when there is a forensic audit of Ingersoll's Smart Schools Management for previous years, and now Full Spectrum and the board would be forced to either look for a different management company and/or eventually close the school once ALL the financial improprieties are proven?

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    1. Noss "attends" GTA board meetings as the head of its management company.

      I'm unable to answer the other questions; pose them to the GTA board.

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    2. Does anyone think this school board is independent? I am guessing Ingersoll is still receiving profit in some format under the table. Corruption of charter schools boards for the Ingersoll schools will only end if the charter is dissolved. The forensic audit would only happen from the federal level against Ingersoll. The school was forced to write the Ingersoll debt off because it is incollectible. LSSU as the chartering agent should be held accountable for lack oversight. MDE could go after LSSU but nothing gets the money back because the Governor and MI legislature has failed to put safe guards in place to handle charter schools ran by inexperienced and/or corrupt people. True change is needed to stop this corruption.

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    3. Let me ask one thing: how can the GTA board unilaterally make the determination to write off $1.6 million dollars...when they've never really tried to recover it in the first place!

      Did the board sue?

      No.

      Did the board say "pretty please, could we have our money back"?

      No.

      Last December, I revealed how Ingersoll's tax attorney, Jan Geht, proposed a settlement to the GTA board in July 2014 that included this clause:

      “The Academy expressly acknowledges that SSM’s expressed hope to pay the Academy $1.6 million in the future is a mere promise and does not create any rights or entitlements in the Academy.”

      When confronted with the hollow threat of a $2.8 counter claim by Geht on behalf of Ingersoll, the board simpered away, leaving at least $1.6 million behind.

      Now, why do you suppose they did that?

      You can read the entire story here:

      http://glisteningquiveringunderbelly.blogspot.com/2014/12/promises-promisespromises-heres-deal-if.html

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    4. A school district by the school accounting manual would not be allowed to keep a receivable on the books to hide the deficit situation. Ingersoll makes it pretty plain he does not intend to pay. His friends are the board members. Ingersoll claims to have to borrow to make living expenses. LSSU is who should force the suit. GTA will claim petals will get them nothing. They are in line after IRS USDA mortgage and lien holders. Just because it is not on the books does not mean they can not go after it. His friends will not do the right thing.

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    5. If the GTA board or the Bay City Academy wanted to clean this mess up they could contact MDE and have them assign a clean team. Get a real admin and get real accounting.records. The ISD could be hired to do the books. The board could have Ingersoll and company out. They do not want it. They want to help the stealing continue.

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  12. At this point only prison will stop Ingersoll. The GTA board will board will not end it without Lake Superior doing their job. Legislative action will not happen without strong support. Next IRS audit Geht? Geht should go to prison for his actions. He is not a lawyer in this case - he is a criminal.

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    1. Unlike Ingersoll, Geht has not yet been charged with or convicted of a crime. Officially, he's not a "criminal".

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    2. He has not been charged or convicted. The definition of criminal only means involved in illegal or unlawful acts. You do not have to be caught. Being caught means you can become a convicted criminal.

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  13. It be interesting to see how Bradley and Ingersoll handle prison. Handle IRS audit teams going thru years of financial records. When they are trying to save assets and prove actual earning that purchased the properties. The bills are going to keep piling up as agency after agency comes after their assets. I would hate facing this mess. It would give me as many nightmares as prison. I wonder if the Ingersoll's would make the same decisions to steal if they knew they would get caught?

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  14. The Ingersolls have made a mess of everything they have touched. And they continue to make messes and headaches for the government, the banks they've borrowed from, school employees that they have shafted with his character-building 'model', and the legions of students who supposedly became gifted and/or cured because of Ingersoll's IVL theory. Now, there a dozens upon dozens of students (if not hundreds upon hundreds over the years) who have had to have remedial tutoring and help because of Ingersoll's non-proven techniques and cocksure ADHD cures.
    If they had to do it over again, I'm sure they would not want to act ethically, they would just try to be more clever and deceptive about their actions.

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    1. So sad for the students. They may have been harmed beyond repair. If Ingersoll school's had them early - students can struggle forever. I am guessing they would have stayed out of Bay City and the popped up in more rural (non union) towns.

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