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.
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
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
-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
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!