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Tuesday, April 29, 2014

A ROYAL PAIN IN THE ASSETS! Ingersoll Fraud Case Superseding Indictment Signals Prosecution's Plan To Seek Forfeiture Of All Property Traced To $1.8 Million Dollar Bank Loan Scam; Asset "Clawback" May Impact Grand Traverse Academy


A superseding indictment filed on April 23 in U. S. District Court in Bay City against Steven J. Ingersoll, his wife Deborah M. Ingersoll, his brother Gayle R. Ingersoll, Roy C. Bradley Sr. and his wife Tammy S. Bradley signaled prosecution plans to seek forfeiture of "all property, real and personal" assets traced to an alleged conspiracy to divert proceeds of a fraudulently obtained $1.8 million dollar bank loan.

In January 2011, Steven Ingersoll obtained a $1.8 million construction line of credit loan from Chemical Bank in Bay City for renovation at the church building that became the Bay City Academy. During the next few months, the Ingersolls and Bradleys moved large sums of money between various business and personal accounts and issued checks to one another, according to the indictment.
The April 23 superseding indictment states that upon conviction of "any of the offenses specified in counts 1, 3, 4, and/or 5 of the indictment", the convicted defendants "shall forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds traceable to the offense(s) of conviction."

If any of the property as described in the indictment is not "readily available" and cannot be located, have been transferred, sold or deposited with a third party, have been placed "beyond the jurisdiction of the court", have been substantially diminished in value or "commingled with other property that cannot be subdivided without difficulty", then the United States "shall be entitled to substitute property".

Steven Ingersoll allegedly used part of the construction loan proceeds, backed by the U. S. Department of Agriculture and diverted to his joint, personal Fifth Third Bank account, to "reduce his indebtedness to his Traverse City charter school, the Grand Traverse Academy." It's expected that because those "tainted assets" would be considered "readily available" under applicable federal statutes (for example, in a Grand Traverse Academy bank account) they would be subject to "clawback" by the feds.

In addition to asset forfeiture, upon conviction any of the violations alleged in counts 1, 3, 4, and/or 5 of the indictment, each convicted defendant will be ordered to pay "a sum of money representing the gross proceeds obtained as a result" of his or her offense.

Late this afternoon, the court also granted a protective order governing discovery and use of those documents. The order protects discovery materials--financial records, tax returns, financial account information--from any unauthorized disclosure.

Court records also reveal that Ingersoll's case will soon be reassigned, due to the impending retirement of U.S. District Magistrate Judge Charles M. Binder.

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