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Monday, July 10, 2017

LINE OF (DIS)CREDIT: Mark Noss Exploits Incoherent Babble, Threats In An Attempt To Get Out From Under Traverse City State Bank Line Of Credit Debt He Personally Assumed From Convicted Fraudster Steve Ingersoll! Too Late, Cuz Ingersoll Already Spilled The Beans...Under Oath!

NEWS ALERT! NOSS REPURPOSING PROSECUTION EVIDENCE FROM STEVEN INGERSOLL'S FEDERAL TAX EVASION CASE IN AN ATTEMPT TO WRIGGLE OFF A $900,000 HOOK!  

The last word about this scheme!

“The 'information' in the public statement regarding Dr. Mark Noss and Full Spectrum Management, LLC was likewise disingenuous. The fact of the matter is that Dr. Noss and Full Spectrum Management, LLC stepped up at a point of crisis in which the existence of the school was in jeopardy because of Dr. Ingersoll's situation. Had Dr. Noss not stepped up at that time, GTA would have been swept in to the problems created by Dr. Ingersoll as it relates to the Traverse City State Bank loan for the benefit of GTA. We do not think that public statements perpetuating a falsehood are the way to say thank you.” 


If you like to drive a big black car, you either become an undertaker or a pimp. But what if you like the heady fragrance of public money and cooked books?

Then you form a charter school management company!

This is my final post about Steven Ingersoll's Traverse City State Bank line of credit loan, and Mark Noss's decision in March 2014 to personally assume the obligation to repay nearly $1.0 million Ingersoll owed to the bank. 

I mean, a blind man could see that Steven Ingersoll was out to play Mark Noss from the jump! Everyone could see this before, during, and after...everyone other than Mark that is!

And Noss now is out to play the Grand Traverse Academy board.

AN ILLEGAL FINANCIAL ARRANGEMENT

It began as an illegal loan agreement between the Grand Traverse Academy and Steven Ingersoll, a promissory note signed on June 8, 2007. The document, signed on behalf of the GTA board by its then-president Lesley Werth, was not preceded by the required board resolution — a critical lapse never corrected.

The loan document, publicly available by a Freedom of Information Act request, was entered into evidence by Steven Ingersoll's defense team during his sentencing hearing.

Here are the terms and conditions of the agreement:

The Grand Traverse Academy, hereafter, GTA hereby enters into a Financing Agreement with Smart Schools Management, Inc. hereafter SSM. 

The terms and conditions of this agreement follow: 

Amount to be financed: GTA agrees to borrow $450,000 from SSM to be used for the 2006-07 fiscal year. 

Term: The term of the Agreement commences as if June 8, 2007 and continues until repayment. 

Repayment: The Academy is obligated to pay SSM from legally available funds in the amount and on the dates set forth the mutual agreement of the the treasurer of GTA and SSM. The obligation of the Academy to make Payments due is absolute and unconditional in all events. 

Additional Obligations: During the Term of the Financing Agreement, the Academy shall be obligated to pay monthly interest in the amount of 4.5% of the existing outstanding balance. 

Security: The agreement is uncollateralized. 

Default: The Academy shall be deemed to be in default under the Financing Agreement if 

(a) The Academy shall fail to make Payments when due 

(b) the filing by the Academy of a voluntary petition in bankruptcy or failure by the Academy promptly to lift any execution, garnishment or attachment of such consequence as would impair the ability of the Academy to carry on its operations at the Project, or adjudication of the Academy as a bankrupt or assignment by the Academy for the benefit of creditor, or the approval by a court of competent jurisdiction of a petition applicable by the Academy to any proceedings instituted under the provisions of the Federal Bankruptcy Statute, as amended or under any similarly federal or state laws, which may hereafter by enacted. 

(c) The failure by the Academy to possess a charter issued under the laws of the State Of Michigan. 

Default Remedies: Upon the occurrence of an event of default as specified above, SSM may, as its option, declare the then applicable balance to be due and payable

As I've previously reported, Ingersoll parlayed the June 8, 2007 promissory note into collateral that backed his Traverse City State Bank line of credit loan. 

The linchpin of Noss's defense has been his insistence that he stepped in to personally assume Ingersoll's Traverse City State Bank debt to protect the GTA from the financial predation of the bank because “they consider GTA the recipient of the line of credit”.  

However, contemporaneous documents from March 2014, including a March 18, 2014 email detailing (for the entire GTA board and Lake Superior State University's charter office officials Bruce Harger and Nick Oshelski) a succession plan, reveal the main driver was really Steve Ingersoll.

“IT IS IMPERATIVE THAT THIS BE DONE IMMEDIATELY SINCE STEVE IS MEETING WITH THE PROSECUTOR TOMORROW.” 


Ask yourself this question: where was the legal review by the board's attorney, Doug Bishop, on the succession plan and its impact on the GTA?

Was an opinion even sought by the board, or its president Mark Noss?

It appears the answer is likely hell no.

I can understand why Noss was in such a rush to push this plan through to protect his covert business partner, but why were no objections raised by anyone else on the board or at LSSU?

In my opinion, there's only one reason: this was the beginning of the GTA's public coverup, and effort to (as Noss himself stated: “The media expose will be devastating to the school. We must be proactive and put a new management company in place before the media gets ahold of it.”) protect Ingersoll and the board from any meaningful investigation of the embezzlement of nearly $5.0 million from the Traverse City charter school by Ingersoll.

And so far, it's worked.

On September 12, 2014, the GTA board met and publicly addressed the Ingersoll controversy, tamping down dissent with this statement by attorney Kerry L. Morgan:

The Board upon concluding its closed session and reconvening into its regular meeting requested interim legal counsel Kerry L. Morgan to summarize the Board’s position in connection with several issues, whereupon Mr. Morgan stated to all those in public attendance essentially as follows: 

First, Mr. Morgan addressed the past relationship with Smart Schools Management (SSM). He observed that SSM had a written contract with Grand Traverse Academy (GTA). The parties agreed that SSM would contribute about 5 million to GTA over time. GTA carried this pledge upon its books as a “prepaid” amount. Annual certified public audits found this characterization acceptable since the continued relationship with Dr. Ingersoll and SSM warranted the expectation of GTA’s eventual receipt of these funds. Due to the federal indictment of Dr. Ingersoll, however, GTA terminated its contractual relationship with SSM in March of 2014, having received only about $3.4 million of that amount leaving $1.6 million not received by GTA. It is anticipated that the next audited statement of GTA will modify the accounting treatment of these funds, since receipt thereof was rendered uncertain by the abrupt termination of GTA’s management relationship with SSM. 

Second, Mr. Morgan discussed Grand Traverse Academy’s obligation to Smart Schools Management during the term of their contractual relationship. He affirmed that on the one hand no fees were paid to SSM that were not budgeted and contractually authorized. It was also noted on the other hand, however, that the termination of the agreement by GTA constituted a complete and final termination of all contractual obligations. As such, no obligations or fees are legally owed by GTA to SSM. 

Third, it was observed that Full Spectrum Management (FSM) had been contractually retained by Grand Traverse Academy. Speculation that the retention of FSM was irregular in procedure was discounted by Mr. Morgan. He explained that the exigencies of the circumstances involving a transition of management companies during the middle of the academic school year fully justified the retention of a qualified management company for the sake of continuity and service to students and parents. Retention occurred at a properly noticed and posted meeting of the Board. 

Nothing to see here, folks, so move along. 

Aided and abetted by the craven Traverse City area media, those at the GTA's September 12, 2014 board meeting unwittingly witnessed the birth of the “philanthropist and not a thief” explanation, one that the school's board firmly clings to today.

But Noss is still stuck with repaying nearly $800,000 for an obligation he personally assumed. 

Here's why: Noss made the mistake of using a document entered into evidence by the prosecution during Ingersoll's criminal tax fraud trial in a ludicrous attempt to prove the Traverse City State Bank debt legally belongs to the Grand Traverse Academy!  

THE PROBLEMS CREATED BY DR. INGERSOLL: THE MONEY LAUNDERING SHELL GAME

“The line has been used as agreed, was at $0 balance for 2 months in March-May 2011.” 
Traverse City State Bank Line of Credit Renewal Analysis Smart Schools Management, Inc. February 27, 2012

In June of 2011, Roy Bradley and Steven Ingersoll submitted construction draw requests totaling $704,000 to Chemical Bank, causing the bank to transfer $704,000 to the Madison Arts account in late June. 

Steven Ingersoll then transferred the $704,000 to Roy and Tammy Bradley’s construction company’s credit union account. 

Tammy Bradley then transferred the $704,000 from the construction company’s credit union account to Gayle Ingersoll’s business account at United Bay Community Credit Union in Bay City. 

Gayle Ingersoll, shortly after receiving the funds, transferred the entire $704,000 to Steven and Deborah Ingersoll’s joint, personal Fifth-Third Bank account. 

Steven Ingersoll then transferred $700,000 on June 30, 2011 from a personal Fifth-Third Bank account (#00487754785) he shared with his wife, Deborah, to reduce the Grand Traverse Academy's Fifth-Third account in an attempt to reduce his indebtedness to the Grand Traverse Academy—the last day of the school's fiscal year. 

So why didn't the money come from Smart Schools Management? Wouldn't that have been the expected source? 

And why didn't the attorney representing Mark Noss seek to verify the source of funds?

And why don't we know what happened to that $700,000 the next day, July 1, 2011?
And this is what Noss is using in an attempt to prove “money was deposited into GTA’s account”?

That's fucked up, on so many levels.


12 comments:

  1. really? GTA saves a half a million a year,times that by all the years Ingress oil was there on top of that!
    it's clear Nosshas no interest in children when parents have to solicit books for a library that do not have yeah thanks for everything !
    Ingersoll ain't coming back home!

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  2. they've been letting Traverse City State Bank make all the interest the banks in it for the money that's what banks do!
    but it appears instead of getting a state note they went to the bank,noss,they are all crazy

    ReplyDelete
  3. Love your wording, Miss Fortune: "fragrance of money and cooked books." That's exactly what it is!

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  4. What better way to say thank you with a $900,000 contract.?
    PLUS!
    anger soil and nauseous had a contract all sewed up till he got out of federal prison,public humiliation is far better than any prison everybody knows!!!
    it takes a real man to confess and make amends.
    there's no excuse for the mde or the Attorney General to overlook this it's a reflection of what our government has become worthless.
    the rich get richer the poor get poorer!
    it's good to see grown men cry LOL
    I'm sorry honey you can't fly to New York for shopping this week.

    ReplyDelete
  5. The board, which included Noss, went along with whatever Ingersoll wanted- always. There was never any oversight or critical thinking. The money was always the main interest for Ingersoll, and Noss leaped to be the management community any at the first chance so he could take it in. Oops- small matter of not having a clue about real financial management. Now he's in it up to his neck, trying same old Ingersoll tricks, and lying through his teeth- thinks no one paid attention the last time. The bank ain't buying that- don't think they really care about his excuses and bravado about how he's 'saved' the school- which he obviously cares so much about he wants to stick them with his debt. Good luck with that.

    ReplyDelete
    Replies
    1. But don't forget that Noss was 'consulting' with Ingersoll for guidance on so many charter school issues! Hope he goes under and follows Ingersoll to prison. Can't happen soon enough.

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  6. So the bank statement that Noss used was for one month and the statement was used in Ingersoll's hearing. Hold it right there, I want to see the bank statements for the year because as we all know, they put money in and pull it out faster than a jackrabbit crossing the road. Why would anyone ever believe Noss or the board members for that matter. Noss is going to try and bully and threaten the board members, he thinks he can take advantage of them. Get a grip board members he can't touch you and if he tried to all his money laundering and thievery would be exposed.

    It sure sounds like no one really cares about education or children it is just a white collar business that launders money on the backs of children and tax payers. Where are the lawyers that should take this into their own hands and defend these children and the school and their city. Clean it up people. Do not let that board slide Noss anymore money. Demand accountability, get accountants and lawyers and rescue this school. Noss took over Ingersoll's personal loan and that is all there is to it. Sucks to be you Noss but you went into this knowing full well it was a gamble and do you really think Ingersoll gives a rats butt about you!

    ReplyDelete
    Replies
    1. A sorry-ass attempt by a lawyer who's either incompetent or ill-informed to lull the GTA board into coughing up hundreds of dollars to Steven Ingersoll's partner in business...and in crime!

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  7. Ingersoll is still playing Mark Noss...we can bet that Noss and /or that Grand Theft Academy is still paying Ingersoll some money for his IVL (I Value Loot) curriculum. Wasn't it something like $300,000 that was split between Ingersoll and Noss with Noss paying Ingersoll $150,000 and the same amount to himself each year that Full Spectrum Management was in charge? Hope they both get what they deserve: fines, penalties and then some.

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  8. Thank you for all your work, Miss Fortune. Good people appreciate your efforts.

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  9. If any of the schools are paying for IVL that should be a red flag to parents, teachers and board members that they are still funneling money to Ingersoll and Noss.

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  10. Wow! Just imagine what they could accomplish to help children if they were not all crooked as sin.

    ReplyDelete