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Wednesday, April 1, 2015

WAS "PEANUT" BUTTERED? Ahead Of An Expected (And Massive) Federal Restitution Order, Steven Ingersoll Already Transferring Properties; Feds File Motion To Prevent Ingersoll From "Dissipating" More Assets. Motion Reveals Ingersoll Tax Loss/Restitution Nearly $4.0 Million; He'll Likely Be Socked With More, Including "Cost of Prosecution"!

BREAKING NEWS!

Feds: “Ingersoll has been taking various steps to cloud the title to property owned by his various entities and to put his property interests beyond the reach of the court.” 



FOR THE CONSIDERATION OF ONE DOLLAR: "PEANUT" GETS A HOUSE

Back on March 19, a stipulation was filed in federal court allowing convicted tax cheat Steven Ingersoll to contact a select group of individuals to "arrange his financial affairs and to prepare for sentencing": Craig Johnston, Mark Noss, Margo Abbott, Patty Engler, Randy Kienbaum, Walter Szostak, Nick Oshelski, Richard Cummins and one Kyle Andrezjewski.

Although I wasn't surprised by most of the names (including Bay City Academy board member Johnston, business partner Noss, longtime Smart Schools Management employees Abbott and Engler, bank executives Kienbaum and Szostak, Lake Superior State University charter school office head Oshelski and tax preparer Cummins), one did jump out for its seeming incongruity: Kyle Andrezjewski.

Andrezjewski, better known to his fellow Thunder Builders wage slaves at the Bay City Academy construction site as "Peanut", seemed an odd addition to the list. 

But an affidavit filed yesterday by an IRS agent in Steven Ingersoll's federal fraud case may have provided the answer: on or about March 26, a quit claim deed was filed with the Bay County Register of Deeds transferring 111 N. Monroe in Bay City from Arts District LLC to Kyle Andrezjewski—for the consideration of one dollar!

Steven Ingersoll signed the quit claim deed as the grantor on behalf of the Arts District LLC. 

The state equalized value for that property is $28,150.

But it doesn't end there.

On March 26, the same day the quit claim deed for 111 N. Monroe was filed, the IRS affidavit states that Andrezjewski went into the Bay County Treasurer’s office to request a "hardship exemption" from the $10,247.44 owed in back property taxes on 111 N. Monroe. 

Hulking Gayle Ingersoll (left), Steven Ingersoll’s brother and former co-defendant, escorted Andrezjewski into the Bay County Treasurers office. On the hardship exemption paperwork Andrezjewski listed Roy Bradley's Thunder Builders as his former employer. Also, he listed his estimated household income for this year as approximately $8,416.39. 

Nevertheless, the affidavit states, Andrezjewski "inexplicably
agreed to pay the county $500 per month for the back taxes owed on 111 N. Monroe", leaving him less than $2,500 to live on for the year...unless Andrezjewski has income that he did not disclose.


Hmm?

In a "threats and intimidation investigative report" filed March 13 on behalf of Roy C. Bradley, Sr. in his federal asbestos conviction, Saginaw-based private investigator Alan Ogg related his conversation with "Peanut" Andrezjewski: "Andrezjewski stated he'd been subpoenaed to testify before the grand jury in the fall of 2013 and that he had been subpoenaed by Mr. Bradley's lawyer for the trial in the fall of 2014. He stated he picked up the subpoena at Bradley's house. He said he had gone to court but was never called to testify. He also stated that he had never been threatened or intimidated by anyone related to the court case."

So, what's the name of this game? Cooperate, and you'll get a "$1.00 House?"

Even more galling, the court documents filed yesterday reveal Ingersoll was already transferring properties the day after he was convicted of three federal felonies.

On March 11, 2015, the day after Steven Ingersoll was found guilty, a quit claim deed was filed with the Bay County Register of Deeds to transfer the property located at 921 N. Van Buren Street in Bay City from Keith House, LLC to Norman Pennell and Lisa Kolanek-Pennell—for a consideration of $300. (I guess the Pennells didn't qualify for the special "Peanut" discount!)

Steven Ingersoll signed the quit claim deed on behalf of Keith House LLC and is listed on the accompanied "Written Consent of the Members in Lieu of an Organization Meeting" as the sole member of Keith House, LLC. 

The state equalized value of the property is $30,800, substantially more than the $300 consideration indicated on the deed for that transaction.

And, just yesterday, March 31, three more quit claim deeds were filed with the Bay County Register of Deeds to transfer properties located at 101, 105, and 107 North Jefferson in Bay City from the Jefferson Block LLC to Charles and Mary Lee Militello. 

Each of the three quit claim deeds was for $100 consideration, and Steven Ingersoll signed the documents as "Manager of the Jefferson Block LLC". The state equalized value for 101 Jefferson is $3,200,105 Jefferson is $5,000 and 107 North Jefferson is $2,500.

And, just to keep it "all in the family", Roy and Tammy Bradley's daughter, Kristy Wyson (the Bay City Academy's Business Manager) did the honors and notarized the transfer documents.

It seems like Steven Ingersoll has long had a habit of transferring titles using a quit claim deed.

As I reported on this blog last fall, Steve Ingersoll signed a quit claim deed on September 26, 2013 for 241 N. Farragut, deeding the "rights and interest" in the property to one Gerald A. Essex exactly one week after he was arraigned (along with Roy Bradley) on four counts of illegally distributing and handling asbestos.

Essex, known on the job site as "Bark", was the crew foreman of Bradley restoration company, Lasting Impressions, at the Bay City Academy conversion project. Although Bradley was convicted on all four counts, Essex escaped justice and was found not guilty. 

FEDERAL RESTRAINING ORDER: STOP INGERSOLL FROM "PROTECTING" ANY MORE ASSETS

The government's motion for a restraining order reveals since his trial began on February 10, and continuing after the jury returned its verdicts on March 10, Ingersoll has been taking various steps to "cloud the title to property owned by his various entities and to put his property interests beyond the reach of the court."


Based on the timing of the transfers, as well as the participants in the transactions, the government motion states that "it appears that Steven Ingersoll is engaging in a course of conduct intended to put title to his assets into friendly hands to keep liens based on the anticipated restitution and costs of prosecution provision in the forthcoming judgment from attaching to those properties."
 

As I reported on this blog February 28, Ingersoll's tax attorney, Jan Geht, provided his client with access to a $250,000 line of credit secured by seven of Ingersoll's Bay City properties just days before the start of Ingersoll's federal fraud trial. Geht's representative officially registered the "future advance mortgage" with the Bay County Register of Deeds on February 10 as Ingersoll's began. 

And, of course, Roy Bradley's daughter, Kristy Wyson, was the Notary Public for that batch of documents.

Steven Ingersoll is currently scheduled to be sentenced on June 16, 2015. Based upon the proofs presented at trial, the government submits that "combining the tax losses from all of the participants in the 2011 tax evasion conspiracy charged in Count 2 of the indictment results in a total tax loss of $2,327,182.30", including penalties and interest, computed as follows:

Steven Ingersoll’s 2011 Personal Tax Due = $1,238,058.60
Roy Bradley’s 2011 Personal Tax Due = $ 564,393.28
Roy Bradley’s 2011 Employment Tax Due = $ 84,914.64
Gayle Ingersoll’s 2011 Personal Tax Due = $ 439,815.78
Total Tax Loss for 2011 = $2,327,182.30


Steven Ingersoll’s re-computed criminal tax obligation, even before penalties and interest are assessed, is $200,226 for 2009; $530,667 for 2010; and for 2011 is $942,132, yielding a total of $1,673,025. 

Taking into consideration the applicable penalties and interest, the taxes owed by Steven Ingersoll individually for 2009, 2010 and 2011 is $2,699,673.48. 

When the portion of the 2011 tax loss attributable to Roy and Tammy Bradley, as well as Gayle Ingersoll, is added to Steven Ingersoll’s individual total for 2009, 2010 and 2011, the aggregate total tax loss and restitution owed by Steven Ingersoll is $3,788,797.18. 

In addition, Steven Ingersoll is also responsible for additional financial sanctions based on the cost of prosecution as required by statute. 

Saying there is "reason to conclude that Steven Ingersoll has been transferring and that, between now and his sentencing, he will continue to transfer or liquidate his property interests to place them beyond the reach of the court and the anticipated judgment to be entered in this case, thereby rendering his assets unavailable for payment of court-ordered restitution, fines and costs", the government asks that Steven Ingersoll also be restrained from transferring his interest in property, including "intellectual property that generates an income stream" (likely the roughly $300,000 paid to Ingersoll's Smart Schools Incorporated by the Grand Traverse Academy for "curriculum licensing") pending his June sentencing. 

Buyer beware, as the order the government's seeking restraining Ingersoll's assets in this case may encompasses "individuals
and entities besides Steven Ingersoll", restraining third parties from taking title to assets from him if the third parties are given notice of the court’s restraining order.


The government is requesting the eventual restraining order require Ingersoll to give actual notice of the order to third parties who might otherwise be willing to engage in a "transaction affecting the availability of an asset in which Ingersoll or one of his entities has an interest to satisfy Steven Ingersoll’s financial obligations to the
court".



Stay tuned!

27 comments:

  1. Thank you, Miss Fortune, for all your research and diligent work! Honest taxpayers appreciate all that you have done and are doing. Keep up the great work and keep shining a light on darkness.

    ReplyDelete
  2. When will this motion be answered by the court?

    ReplyDelete
    Replies
    1. There's been no response yet from Ingersoll's criminal defense attorney, Martin Crandall, or his whiz-bang tax attorney, Jan ("I know 37 loan factors") Geht. After the attorneys respond, there will likely be a motion hearing and the judge will issue an order.

      Until then, we wait...and watch while Ingersoll offloads more even properties to his so-called "friends".

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    2. What will/can happen to the "Magic 7" properties that were/are used as collateral by Geht's Traverse City law firm if /when Ingersoll is forced to
      make restitution to the Feds? And since Mr. Ingersoll still hasn't paid all his property taxes on those "Magic 7", can the law firm revoke its loan
      and then claim those properties as theirs?

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    3. I can only guess--I suppose if Ingersoll had not repaid what Geht and his law firm advanced him, then the properties could be seized and sold to recoup that money. Of course, it's likely the properties have other obligations (liens, loans, taxes), making the picture even cloudier. Too bad the Feds didn't file for the restraining motion the day Ingersoll was convicted. I'm not surprised Ingersoll did this...

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  3. Could the federal government and Judge Ludington use this information to outline a case of conspiracy by Ingersoll and company to defraud the government? IRS? Could these "fraudulent" transfers be how Ingersoll gets the longest 15 year sentence? Can all "fraudulent " property transfers be voided?

    ReplyDelete
    Replies
    1. I'm not a lawyer, so I can only guess at an answer. If the IRS is continuing to investigate Ingersoll, then these transactions may be getting a closer examination from a "value" position--transferring property for pennies on the dollar sounds like it might be considered a "gift" (wink, wink, nudge, nudge!) and might be taxable.

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  4. Does anyone think this guy is not a scam artist who deserves many years in prison?

    ReplyDelete
    Replies
    1. Not Miss Fortune, but there's a string of people in Michigan who think otherwise: Mark Noss, Brad Habermehl, Brian Lynch, etc.

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    2. Ok! Better question; any criminal not believe this crook should serve his first 15 and disposing of assets get him another 50. He is such an unethical man who deserves to rot with his cell mates making life fun.

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  5. Has Steven Ingersoll kept his wife out of the conspiracy of hiding assets? Is she going to claim she did not know about these business transactions? Why would anyone join Steven's new conspiracy to defraud the government? His shady lawyer should lose his license for his part in the conspiracy to hid assets. Keep the illgegal activity up and never leave the prison cell. The government can revoke the transactions seize the assets and all involved can get adjoining cells. Do not get involved with this criminals mess.

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    Replies
    1. Would love to know the answers to these questions!

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    2. Great question! I'm sure she's somehow in the know about all the 'Quit Claim Deeds', etc. and trying to hide her husband's ASSets. Honest people would completely agree with you that the lawyer(s) and all involved in the conspiracy to hide Mr. Ingersoll's assets (whatever he has left of them!) should get stopped, fined and imprisoned. And all the activities to further defraud the government and taxpayers should be revoked/rescinded. All those new Quit Claim Deeds transferring Ingersoll's remaining properties, etc. should be revoked, and the sooner the better.

      Delete
  6. Has there been any information that the Michigan Department of Education or the chartering agent is going to close down these two schools and end this corruption?

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    Replies
    1. Michigan Attorney general should file charges on behalf of the Michigan Department of Education against Ingersoll and the management company and each board member for approving a loan using public funds. Each board member should contribute their share and they should collect from their friend. The board approved the money. It should be their personal responsibility to make the school whole.

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    2. Why didn't the Ingersolls follow their Bay City Academy's motto: "We have one simple rule: Do the right thing because it's the right thing to do."? We haven't seen that line on their school's marquee/sign for a a long time. It seems the Ingersolls (et al) only do the 'right thing' when it comes to trying to protect their finances. And even then, it's a wrong or crooked thing. The Ingersolls and their band of conspirators should have done the right thing and just turned themselves in. They could have saved the American justice system and honest taxpayers millions of dollars. What a movie and book this would make!

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    3. Why hasn't the Attorney General done anything? Miss Fortune do you have any insight? Seems to me the AG would have a field day with all the publicity associated with it. God knows he loves publicity. There is a story here somewhere. What is bill Schuette waiting for??????

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    4. It's my guess that since AG Schuette is gearing up to run for Governor in 2016, he doesn't want to toss around this hot potato. It's unlikely Schuette would grow a pair and defy the likes of Republican kingmaker Dick DeVos. When DeVos unsuccessfully ran in 2006 for Governor, a popular anti-DeVos campaign slogan summed it up: "Dick DeVos...before he dicks you!"

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  7. Maybe the Ingersolls want the feds to take their house and bed & breakfast towards the taxes due? Why is anyone stupid enough to let Ingersoll and company get them involved in a conspiracy to defraud the government? Ingersoll must be ignoring all competent advise and still think he is playing his shell game with people who do not have the ability to follow his transactions. Judge Ludington should enjoy receiving the motions from the feds for these continued illegal acts. Maybe Ingersoll is looking forward to "SUMMER CAMP" so much he is trying to figure out how to live there forever.

    ReplyDelete
    Replies
    1. I seriously doubt Ingersoll is having ethical advice...only advice to see how he can wiggle/worm out of any debts, etc. that he can. If his attorneys gave advice, I'm sure it's only what the limit of the law is for him to get away with as much as possible.

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  8. These "friends" are making such stupid decisions it makes me wonder if Ingersoll is blackmailing them or if he has special grape kool-aid for them to drink. With the Ingersoll as a friend who needs enemies?

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    Replies
    1. That's an interesting idea/point...that Ingersoll is blackmailing them. Maybe it's some of the 'paybacks' that he owes to some of the fellow conspirators or people who have worked with him in his schemes. Maybe, these people are getting something under the table for being part of his schemes with his Quit Claim Deeds, etc. Then, too, maybe it's money that he owes them for some work, and they are getting paid in a 'creative' Ingersoll way. Nothing should surprize us!

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  9. If Miss Fortune doesn't already know, the 921 N Van Buren St property Quit Claim Deed to the Pennells, is to the people who live at 920 N Jackson (directly behind the now empty lot). Interesting how federal money that leveled the former house at 921 N Van Buren costing thousands of taxpayer dollars and the delinquent property taxes can now be reduced to a mere $300 QCD. One wonders how many more 'clouds' the Ingersolls are making this week and before June 16th!

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    Replies
    1. Thank you for the info--Miss Fortune did not know about the proximity between the Pennell home on N. Jackson and the now-vacant lot.

      Must change my bike riding habits!

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  10. Keep posting information to keep the public informed. The criminal's seem to believe they are above the law.

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    Replies
    1. Right on....since the local media (newspaper and TV) should have been doing more coverage, but haven't, for the public good we need to be informed and aware of the whole story. It is a community service that Miss Fortune has been doing for all of us.

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