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Tuesday, June 23, 2015

I WENT TO THE BANK AND ASKED TO BORROW A CUP OF MONEY: Government Files Motion Seeking To Compel Steven Ingersoll To Provide "Complete And Accurate Financial Information"; Lack Of Cooperation Could Impede September Sentencing

What a shock!

Steven Ingersoll, the man who recently pimped out his Carlisle Farms Traverse City residence, (listing it as a "luxury rental" without an East Bay Township special use permit and turning it into an income stream), and quit claim deeded a Bay City building to a local character known as "Peanut" mere days after he was convicted of tax evasion has been accused by government prosecutors of failing to provide complete and accurate financial information to the U. S. Probation Office.

Yes, the man that previously secret documents reveal spent years manipulating financial statements at the Grand Traverse Academy to cover up his multi-million dollar looting of taxpayer cash is now attempting to delay his September sentencing by refusing to cooperate with the government's demand to provide an accurate listing of his assets and liabilities.

Quelle surprise!

In a motion filed on June 19 in Ingersoll's federal fraud case,  government prosecutors assert "information provided by Ingersoll (through his counsel) to the Probation Office reveals that Ingersoll has both provided inaccurate financial information and refused to provide financial information that he is obligated to provide to the
Probation Office."


The government motion asks the court to order Ingersoll to provide "complete and accurate financial information" to his probation officer no later than July 20, 2015, providing sanctions if Ingersoll fails to comply with that order, and any other relief deemed appropriate by the court.  

According to the motion, the government asserts "the most egregious manifestation of Ingersoll’s refusal to provide necessary
information to his probation officer is in the listing of assets and liabilities that Ingersoll gave to his probation officer through his defense counsel."
 


The government accused Ingersoll of "grossly understated the value of his assets, double counted his potentially legitimate liabilities, and claimed liabilities that are not actually his obligation to
pay."


-Ingersoll reported that his home in Traverse City, Michigan is an asset with a value of $162,830 but he also reported a liability of $384,000 from the mortgage on that residence.


-Ingersoll reported that his second home in Bay City is worth less than $88,000 but also listed a $103,000 mortgage on that home as a
liability.
 


The government says that "Ingersoll’s information of that nature does not withstand scrutiny. If one charitably indulges a theory that Ingersoll may have reported -- not the value of his assets, but the equity he is willing to acknowledge in those assets after deducting
encumbrances such as mortgages and taxes-- then it is apparent that Ingersoll also has double counted the encumbrances by listing them as liabilities."
 


In addition, the motion states Ingersoll claimed to his probation officer to have liabilities associated with at least four parcels of Bay City real estate that do not appear to be included in his list of assets.

And here's something worth noting — Ingersoll also failed to disclose to his probation officer the value of his "optometrist-related assets, the value of the intellectual property that he has marketed to charter schools across the nation, and failed to list the value of his real estate interests outside of Bay City other than his primary residence in Traverse City, Michigan."

Wonder if Ingersoll neglected to include as income the "curriculum development" fee he's likely still receiving from the Grand Traverse Academy. Financial records indicate it hovers around $300,000 a year.

Conversely, the government claims that Ingersoll listed liabilities that are not truly his, apparently seeking to magnify his indebtedness. 

For example, Ingersoll included on his list of liabilities the property taxes and a $1.6 million-plus mortgage on the Bay City Academy building at 400 North Madison in Bay City. Ingersoll and his wife quit claimed any interest in that property in a deed dated April 9, 2010 and recorded on January 26, 2011.


Ingersoll also reported that he is liable for the property taxes and a $759,974 mortgage on the Farragut School in Bay City, and even a $700,000 State Aid Note for the Bay City Academy. 

All of those liabilities claimed by Ingersoll are actually obligations that are to be paid out of state per pupil funding provided to the Bay City Academy by the taxpayers of Michigan. The entity that
currently operates the Bay City Academy, boy wonder Brian Lynch's Mitten Educational Management, not Ingersoll, is responsible for directing the state per pupil funds to pay the mortgage and property taxes owed in connection with that public school academy.


So, a convicted felon in Michigan can't get a liquor license...but can still get millions in taxpayer funds?

Ingersoll has reported to his probation officer that his liabilities exceed his assets by almost $3.6 million dollars. 

At the same time, Ingersoll has refused to give information
regarding his income and his necessary living expenses to his probation officer. 


The government acknowledges in its motion that it could "merely object to the financial section of the initial presentence report" for Ingersoll and not make this motion, but states that doing so would not be consistent with the mandate that the court must sentence Ingersoll without unnecessary delay.  

So, I guess Ingersoll's obstreperous behavior is a form of financial foot-dragging designed to delay his entry into the Grey Bar Hotel...what a shocker!

In its motion, the government suggests that the order should require Ingersoll to provide documentation of his current household income and expenses, including records that would enable Ingersoll’s probation officer to verify the amount, source and manner of receipt of all income in Ingersoll’s household, along with proof of
payment of all expenses Ingersoll claims are incurred in his household. 


The government motion states Ingersoll should also be required to provide a letter to all of his creditors, directing each
creditor to submit directly to the probation officer all available documentation to support the financial information Ingersoll has or will provide, including loan applications, appraisals, and loan payoff amounts for all claimed liabilities. (I wonder if Ingersoll's including that $1.7 million dollars he still owes the Grand Traverse Academy in his "liabilities"?)


The order should also require Ingersoll to cause the entities holding Ingersoll’s financial accounts (such as Ingersoll’s bank, credit union, credit card, brokerage, and retirement accounts) to release directly to his probation officer all account statements for the period between January 1, 2013 and July 1, 2015, to enable the
probation officer to better understand Ingersoll’s financial situation in the year before Ingersoll was indicted to the present. 


For example, like the $217,562 early, "in-service distribution" Ingersoll took from the Smart Schools Management, Inc. 401K fund in 2012, or $205,556 Ingersoll withdrew in 2013.

Yeah, just like that!

And if you think this whole case just descended into farce, you'd be correct.

In its motion, the government reveals that while Ingeroll's mouthpiece (Martin Crandall) claimed during the trial that he did not indulge himself with luxuries such as a boat, Ingersoll listed a boat worth $18,850 as an asset...but claimed a liability of $21,864.73 based on that same boat!



 
















16 comments:

  1. Thank you again, Miss Fortune, for keeping everyone in the know. This is also something the local media (TV and newspaper) should be reporting both in Bay City and Traverse City.

    The only good thing of Mr. Ingersoll underreporting his assests is that the government would seize everything he has in the clawback. The bad thing is that it would be taxpayers who would be paying for his stay in prison. Since he continues to not co-operate, maybe the feds should hire an independent appraiser and charge that to his growing debt to the government.

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  2. The citizens of Traverse City's East Bay Township should demand that the 'special use' for the Ingersolls' personal property be approved or rejected by the locals. Maybe the township should shut them down?

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    1. Good. Watch them like hawks. They are both con men. If she has any brain matter she has retained separate legal counsel to stay out of his mess. It would be awesome if this gets her on tax evasion with the asset reporting. Dig government auditors. This goes back decades with schools in other States. He will claim he did not know he was to report all LLC income. You know the stuff he has been hiding.

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  3. Wonder if Ingersoll made some arrangement with Noss that the royalties on their IVL curriculum would have gone to Ingersoll solely after his indictment, then to Noss or some other party after Ingersoll's guilty verdict. That way he would seemingly have less income to report and maybe made some deal with Noss that the royalties would go to a Noss 'Special Account', to an Ingersoll family member, or to some other entity to try to look like there was no income, but meanwhile he would be getting it via another Ingersoll unique "accounting method"?

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    1. It is almost a given that the crook has continued the illegal activities. I think sleeping in jail for a couple of weeks while awaiting sentencing would be appropriate. Time to start selling Ingersoll assets. Without Ingersoll involvement. Direct order the school boards that any payments to Ingersoll go to a special government account. Make it clear you are going after them for fraud.

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    2. This is my question too. IVL is a main component of the curriculum taught at Ingersoll's charter schools. What is the value of that, and how much is Ingersoll trying to hide there? Is Mark Noss helping him with this, as he is a business partner in that particular asset. It was Ingersoll's lawyer who even brought up IVL in trial, but the Feds seemed to brush that off.

      And I really wish someone would share some of that curriculum with me, I am dying to see it and how it cures ADHD and Autism.

      Up North Progressive.

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    3. The GTA financials show that Ingersoll was receiving $300,000 annually for a line item called "Curriculum Development".

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    4. As a former employee, I can unequivocally say it cures nothing. Not even the people that have to teach it support it. Steve claims that autism is really an occular input/output problem and that most, if not all issues (add, LD) can be traced back to eye movement. Tie that in with choice theory bs and it all adds up to a bunch of hokum. I encourage anyone to withdraw their kids from that school. Yes, most of the teachers are good, but their hands are tied in so many things. The admin is horrible and overlooks problems like discipline and ignores teachers whobeant a consistent discipline policy. The school is constantly dirty bc the cleaning staff--the Bradleys---dont do their jobs, is constantly being excused (the trial, only 1 person, that 1 person bringing their kids, etc) and so admin has teachers and students clean.The school needs to be shut down.

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    5. Mr. Ingersoll's 'science' is nothing more than using some fancy words here and there (ocular motor skills,etc.) and saying everything with such authority/arrogance along with the 'Dr.' in front of his name giving the illusion that he is such an expert in the educational field. His optometry degree does not give him the expertise to solve ADHD and autism. How sad that he has been able to snow so many people, including LSSU, in granting the charter for his unproven educational methodology for so long.

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    6. If Mr. Ingersoll's theory that so many learning disabilities can be traced to eye movement has any merit, it appears his eyes are doing an aweful lot of movement, watching what new discoveries the Feds are making. And he seems to be having a lot of eye movement on his finances and assets, trying to hide them from the Federal radar.

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  4. From all the above information concerning his assets, liabilities, income, etc.,it seems he is still continuing to try to pull one over the Feds (and taxpayers). They and Judge Ludington are not naive. They will be able to see right through this farce.
    Maybe Mr. Ingersoll can be 'rewarded' for his shenanigans and get the fullest sentence he deserves.

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    1. It will be so nice to start seizing his assets. At his deflated values, he can not claim the government shorted him. It is interesting that he claims a mortgage liability on a house that is in the Deborah Ingersoll Trust. How is it possible? Trying to hid assets?

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    2. If they do not have an ankle monitor on him, it is time. Run Stevie. Run. I believe he is planning to make a run for warmer climates.

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  5. As much as I love summer Ingersoll needs prison. Maybe Judge Ludington can toss him in local Freeland or St Louis due to his antics? I would even think the Bay City jail would be a close place to await sentencing. His lawyer could visit him there instead of the Webster house or office.

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    1. Ingersoll has not been sentenced, and once he is he'll be shipped off to a federal prison. Freeland/St. Louis are state corrections facilities; Ingersoll was convicted in federal court.

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  6. While we celebrate our nation's freedom, we hope and pray that we'll soon be free from the likes of all the corrupt individuals that Miss Fortune and others have made us aware of. May they all get exactly what they deserve and not steal or deceive others any longer.

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