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Wednesday, November 29, 2017

“WE HAD A READY MADE MARKET OF CHILDREN” Bay City Academy Pay-For-Play Scandal Part 2!

In early March 2014, Steven Ingersoll set into motion a plan that, if it had succeeded, would have allowed him to maintain control of the Grand Traverse Academy, build a long-desired expansion at the school and pay off the massive business debt he owed Traverse City State Bank (TCSB). 

Having renegotiated the repayment terms of his $989,825 line of credit debt with Daniel J. Stahl, TCSB’s Senior Vice President of Commercial Lending, in late February 2012, Ingersoll engineered a remarkably swift off-loading of that obligation from his Smart Schools Management, Inc. to Mark Noss, then president of the Grand Traverse Academy’s board of directors. 

A contemporaneous string of emails from early March 2014 among Steven Ingersoll, Mark Noss and Dan Stahl revealed a deal was struck on March 16, 2014 for Noss to assume the obligation to repay Ingersoll's outstanding debt, days before the GTA board voted to sever ties with Ingersoll. 

Noss wasn’t formally awarded a management contract until March 19, 2014. 

Right after he assumed control of the GTA, Noss began making $12,500 monthly payments to Ingersoll. 

Forced in March 2016 by a whistleblower’s disclosure to finally acknowledge those payoffs, Noss explained that he had continued to speak with Ingersoll “for guidance with respect to regulation, compliance, and reporting, as well as the requirements of the State of MI, LSSU, and our bond issue” even though he was barred by a federal restraining order from contacting Ingersoll during the early months of 2015. 

On July 27, 2012, five months after Steven Ingersoll renegotiated his $989,825 Traverse City State Bank line of credit debt, he hired Bloomfield Hills-based criminal defense attorney J. Terrance Dillon. 

Dillon would later be replaced by Detroit-based Martin Crandall and Jan Geht, who'd both represent Ingersoll during his 2015 tax evasion and conspiracy trial. 

By early March 2014, Ingersoll had rejected a plea deal, choosing instead to go to trial. With three days to go before Mark Noss ascended to the seat of management, Ingersoll had already negotiated the restructuring of a new deal, with Noss assuming the obligation to pay the $925,000 balance of a $1,000,000 line of credit loan originally made by TCSB to Steven Ingersoll's Smart Schools Management, Inc.

Tomorrow, learn how Steven Ingersoll set up his end in Bay City: how he took a $20,971.81 distribution from his Smart Schools 401K, rolled it into a Mitten Educational Management 401K...and made it disappear!


1 comment:

  1. The feds should be aware of this financial tactic (for lack of a better phrase)!