“This had nothing to do with us,” Lynch said. “The bank doesn't want to be in the business of owning properties. The folks from Chemical Bank have been great to us.”
Bay City Times
November 16, 2016
Fortunate son-in-law Brian Lynch prettied up yesterday's bad news in a “consolidation” statement, with distortion rivaled only by that of Steven Ingersoll himself.
Lynch's statement, with a tone that sounds an awful lot like Ingersoll's infamous pre-indictment email to crony Mark Noss and Lake Superior State University cheese eater Bruce Harger (“I cannot abide excision of my work from the history and future of the Academy”), foolishly attempts to convince you that this upcoming “Red Letter Day” move into the Farragut building is a good thing.
Trust me, it isn't.
And anyone who believes the opposite is a fool.
And while Lynch burbles on and on about “maximizing resources”, improving the “learning environment” and eliminating “redundancy of overheard”, he purposely avoids telling you that Steven Ingersoll defaulted on his mortgage for the Farragut building nearly six months ago.
The remaining remnants of the Bay City Academy will likely be kicked out of that location within the next few months.
Wildfire Credit Union filed a notice of default in Bay County on June 8, 2016.
Here's another thing Lynch won't reveal: his Mitten Educational Management is paying Wildfire Credit Union $8,000 a month to occupy the Farragut building, the equivalent of Ingersoll's monthly mortgage payment. But it's likely the building will either be seized by the federal government once Ingersoll is finally sentenced, or foreclosed on by Wildfire before the end of this current school year.
Scroll up and you'll see (highlighted in the red oval) Wildfire Credit Union's “notice of enforcement of the Assignment of Rents granted” which required Mitten to effectively pay Ingersoll's mortgage in the form of rent, a $96,000 detail quietly revealed on page 25 in the Bay City Academy's 2016 financial statement.
But here's one thing you won't see in any financial statement: Mitten Educational Management agreeing to cut its whopping $325,000 annual management fee.
If you're closing one building, jamming everyone under one roof, shouldn't you cut your fee in half?
(Wonder of the Michigan Department of Education has been alerted about the foreclosure by Mitten Educational Management. They have a fiduciary duty, don't you know. Of course, that didn't stop them from hiding the deficit last year!)