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Thursday, May 7, 2020

CAUGHT! HOW TWO GREEDY BASTARDS RIGGED A LINE OF CREDIT LOAN REPAYMENT SCAM THAT DIVERTED NEARLY $400,000 IN TAXPAYER DOLLARS TO A CONVICTED TAX CHEAT...AND NOW HAVE TO PAY IT ALL BACK! Traverse City-Based Con Men Face 7-Figure Federal Bankruptcy Clawback; Taxpayer Money Flowed, And These Two Piglets Gorged!



In its theory of his tax fraud case, federal government prosecutors asserted Steven Ingersoll’s federal tax evasion charges demonstrated the truth of the sayings that “money gives power” and “unchecked power corrupts”. 

“Steven Ingersoll obtained control over millions of dollars by creating and running the public charter school known as the Grand Traverse Academy. The power of that money enabled Steven Ingersoll to corrupt himself, his wife Deborah Ingersoll, his brother Gayle Ingersoll, Roy Bradley, Sr., and Tammy Bradley. 

As the person who controlled the accounting books and public funds intended for the operation of the Grand Traverse Academy, Steven Ingersoll ignored his obligation to separate his personal finances from the finances of the Grand Traverse Academy. 
 
Instead, Steven Ingersoll treated the tax dollars provided for public education as his personal piggy bank, ultimately diverting approximately $3.5 million from the Grand Traverse Academy to uses other than the operation of the Grand Traverse Academy. 




Steven Ingersoll also manipulated the books of entities he controlled, including Smart Schools Management and Smart Schools Incorporated, to hide his diversion of the public money that had been entrusted to him.” 

But Ingersoll's head-hog-at-the-trough behavior continued for years after he left his management perch at the Grand Traverse Academy in March 2014.

An adversary complaint filed April 30, 2020 in federal bankruptcy court by Kelly M. Hagan, the Chapter 7 Bankruptcy Trustee for the estate of Full Spectrum Management, LLC, revealed one day after Mark Noss sent his now-infamous “Succession Plan” email to the Grand Traverse Academy's Board of Directors, breathlessly pleading with them to avoid a devastating “media exposé” by formally approving a “new management contract” with his newly-hatched Full Spectrum Management, LLC, Noss signed a secret agreement with Steven Ingersoll—one requiring a $12,500 monthly payment from Noss to Ingersoll, purportedly for use of Ingersoll's hocus-pocus-I-can't-focus-technology.

That's right, money for nothing.

As usual, it was all a bullshit lie.



According to the bankruptcy trustee's April 30 adversary complaint, the “alleged “License Agreement” entered into between the Full Spectrum Management and Steven Ingersoll’s owned entity “Smart Schools, Inc.” on March 19, 2014 (the same day the Grand Traverse Academy’s Educational Provider Agreement was transferred from Smart Schools Management, Inc. to newly-formed Full Spectrum Management) was never revealed or provided to Traverse City State Bank for review or approval, despite requiring payments of $150,000 a year to Smart Schools”.

Noss insisted for years to the bank and the Grand Traverse Academy that Ingersoll would not have any further connection or financial relationship with the charter school.

But he lied...again.

On March 15, 2016, an accountant formerly employed by Noss at Full Spectrum Management sent a stunning whistleblower email to the Grand Traverse Academy Board of Directors, alleging Noss had deceived the Board when he stated during its December 17, 2015 meeting that he “has no business relationship with Dr. Ingersoll at the present time”. 

The former accountant disclosed the information to Board president Brad Habermehl and Grand Traverse Academy employee, Heidi Sych, revealing Noss had been making monthly $12,500 payments to Steven Ingersoll for nearly two years. 

The incendiary email, and a March 16, 2016 response from Mark Noss, were provided to the U. S. Attorney's Office by counsel for Lake Superior State University. 



According to a supplemental brief filed March 29, 2016 by government prosecutors during Steven Ingersoll’s sentencing proceedings, Noss acknowledged paying Ingersoll $12,500 per month since he took over the role of educational services provider for the Grand Traverse Academy on March 19, 2014, with the first payment issued in April 2014. 

Noss attempted to dodge the issue by accusing the accountant of verbally accosting and threatening to 'punch' his wife:


Steven Ingersoll failed to include his receipt of $12,500 per month from FSM, yielding $150,000 per year, in the financial information he provided the government on October 15, 2015 in response to a court order directing him to provide complete and accurate information regarding his income. 

Noss responded to the accountant’s email the next morning, on March 16, 2016, acknowledging that he has “for years and continue[s] to pay a proprietary fee for IVL’s Intellectual Properties that has allowed me to use it in my solely owned clinics, as well as more recently apply it in the GTA setting.” 

It appears that was another lie.

In her April 30, 2020 adversary complaint, bankruptcy trustee Kelly M. Hagan termed the Noss cash transfers to Ingersoll as “voidable”, classifying them as fraudulent and seeking a judgment against Noss (and Ingersoll) that would clawback the money paid by Noss to Ingersoll in addition to legal costs.

The table below shows how much Noss shelled out to Ingersoll between April 2014-March 2016. 

The amounts include thousands in “consulting” fees Noss paid for the services of Ingersoll's daughter-in-law, Gretchen, who provided accounting services without the benefit of any professional experience or training.

Coming Friday, more shocking details from the Mark Noss/Full Spectrum Management bankruptcy trustee civil fraud complaint, including newly-released details revealing Traverse City State Bank's Dan Stahl agreed to release Steven Ingersoll from a personal guarantee of repayment for his delinquent $925,000 line of credit debt, but allowed Mark Noss to get by with just his Grand Traverse Academy management contract as his collateral.

Crazy, huh?

2 comments:

  1. Unfit custodians

    Ingersoll + Noss + Lynch = incompetent people resorting to a scale of intricacy that just pissed a trail right to their own doorstep.

    These guys formed a self-magnetic trifecta individually and collectively deeming themselves "worthy of" and “clever enough”: a sure-fire recipe for descending into the depths of super-involved awkward complexity in an attempt to ascend to the top.

    My God! They gamed paying patients, trusting parents and blank-slate schoolkids within the combined arena of healthcare / education. This divulges an addiction to money as a justifiable measure of value over and above people. It proves that not one of them has ever been a fit custodian of other human beings.

    The persistent “but I…” shenanigans should convey to us and the law their forever-inability to see what they have wrought.

    And, Noss put his own children far above the children of his village to ultimately sicken his village: raise and cherish your own children even as you raise and cherish the children around you.

    ReplyDelete
  2. Well put: "They gamed paying patients, trusting parents and blank-slate school kids...an addition to money as a justifiable measure of value over and above people."

    ReplyDelete