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Monday, May 4, 2020

“THE LINES BETWEEN THE DIFFERENT BUSINESS ENTITIES QUICKLY BECAME BLURRED”, AND MARK NOSS “ALMOST IMMEDIATELY BEGAN USING” FULL SPECTRUM MANAGEMENT, INC’S CASH AS “HIS PERSONAL ACCOUNTS”, WITH CASH FLOWING TO FUND MARK NOSS’S “PERSONAL LIFESTYLE”: Full Spectrum Management, Inc.'s Bankruptcy Trustee Files Adversary Proceeding Against Noss, Steven Ingersoll & Numerous Businesses Owned By The Duo; Complaint Seeks 7-Figure Financial Recovery, Including “Clawback” Of Nearly $400,000 Paid By Mark Noss To Steven Ingersoll

Turns out, there was a formal, written agreement dictating the financial terms between Steven Ingersoll's Smart Schools, Inc. and Full Spectrum Management, LLC, the entity formed by Mark Noss on March 19, 2014 to assume management of the cash cow known as the Grand Traverse Academy. 

A “Technical Information License Agreement”, inked by Noss the same day he formed Full Spectrum, was among a trove of documents released April 30, 2020 along with the adversary complaint filed in federal bankruptcy court by Kelly M. Hagan, the Chapter 7 Bankruptcy Trustee for the estate of Full Spectrum Management, LLC.

Hagan is seeking judgments against Noss and Ingersoll that collectively exceed seven-figures, and to disallow claims against the bankruptcy estate asserted by Noss.

Named defendants include Mark Noss, and several LLC's controlled by Noss; Steven Ingersoll and three of his many business entities, including Smart Schools Management, Inc., Smart Schools Inc., and Smart Schools Management of Bay City LLC.

Of course, like most of the jiggery-pokery between Noss and Ingersoll during their respective years at the Grand Traverse Academy, a Traverse City charter school, the licensing agreement was merely a bullshit device crafted to cover up another facet of the massive financial fraud scheme Noss and Ingersoll executed to loot taxpayer dollars for years.


Former Grand Traverse Academy management honcho Steven Ingersoll, newly-released from federal stir, masterminded the off-loading of an obligation to repay Traverse City State Bank (now Independent Bank) in early March 2014 from Smart Schools Management, Inc. to Mark Noss, then president of the Grand Traverse Academy’s board of directors. 

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

Noss didn’t formally sign a management contract for the now-tottering Traverse City charter school until March 19, 2014. 

Noss then signed a promissory note on March 20, 2014 as the Managing Member of Full Spectrum Management, LLC, assuming the legal obligation to repay $925,000 left outstanding by Steven Ingersoll's Smart Schools Management, Inc.

Noss and the Grand Traverse Academy parted ways on June 23, 2017

Noss filed a Chapter 7 bankruptcy petition February 19, 2019 on behalf of Full Spectrum Management. 

Full Spectrum's “Summary of Liabilities” exceeded $1.0 million, with the lion's share ($766,925) owed to Independent Bank. 

On May 7, 2019, Noss was subpoenaed, and ordered to provide Independent Bank with a dirty laundry list of documents related to his 2014 assumption of nearly $1.0 million owed by convicted felon Steven Ingersoll to Traverse City State Bank. (Independent Bank inherited the mess when in it assumed control of TCSB in 2018.)

A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. 

Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. 

Independent Bank was the biggest loser in the Full Spectrum bankruptcy filing: facing the discharge of $766,925 owed by Noss/Full Spectrum. 

A hangover of the Grand Traverse Academy's Steven Ingersoll regime, the massive debt reflected the deal Noss made in 2014, engineered by Ingersoll (and Traverse City State Bank's Dan Stahl) to personally assume repayment of Ingersoll’s delinquent $989,825 line of credit debt. 

Independent Bank filed a civil suit on September 13, 2018 against Full Spectrum in Grand Traverse County's 13th Circuit Court, seeking repayment of the outstanding debt. The Grand Traverse Academy was named a third-party defendant by Noss/Full Spectrum, asserting that the Traverse City charter school is responsible for causing his liability. 

Although court records show a non-jury trial was scheduled to begin June 11, 2019, the Full Spectrum Management Chapter 7 bankruptcy filing on February 19, 2019 triggered an automatic stay. 


On January 22, 2020, a Settlement Agreement was struck between the bankruptcy trustee and Independent Bank, with the Bank pursuing the collection of all Accounts Receivable owed to Full Spectrum Management by Dr. Mark D. Noss, a/k/a Mark D. Noss, Mark D. Noss, O. D., L.L.C., d/b/a Full Spectrum Eyecare and MDN Development, LLC (or any other affiliated or related entity to the Debtor and/or their principals as permitted by law) and Grand Traverse Academy. 

The bank's agreement with Full Spectrum's bankruptcy trustee allowed the bank to pursue collection of the amount from Noss, Noss-related entities and the Grand Traverse Academy, while simultaneously conducting an investigation to seeking discover whether payments made by Mark Noss to Steven Ingersoll were done with intent to hinder, delay, or defraud Full Spectrum's creditors.

And, according to the Trustee's April 30, 2020 adversary complaint, they found it: as an example, in a notorious series of transactions cited in the complaint, Full Spectrum Management (under the direction of Mark Noss), made the “Steven Ingersoll/Smart School entity transfers to whatever entity Ingersoll directed him to pay” during a twenty-four month plus period of time between March 2014-April 2016 and each of these transfers were made at the time “with the intent to hinder, delay and/or defraud creditors”. 

According to the adversary complaint, and based on the books and records of Full Spectrum Management and Mark Noss’s testimony during the Rule 2004 examination, Noss as the sole member of Full Spectrum Management, MDN and Full Spectrum Eyecare, “essentially operated the entities interchangeably and with no boundaries, failed to maintain clear and concise books and records regardless as to the use of funds” between debtor Full Spectrum Management, himself and his other entities. 

In addition, all decisions as to how the cash flowed from Full Spectrum Management to Noss and his related entities were directed and controlled by Noss. 

According to the complaint, Full Spectrum Management’s books and records reflect that Noss began taking in April 2014 staggering “Owner’s Draws” or distributions from Full Spectrum Management’s accounts: during the first eight months of operations from April 2014 through December 2014, Noss recorded monthly draws and/or distributions totaling $435,500. 

This included paying himself $100,000 in draws in July 2014 and $50,000 a month draws in August, September, October, November and December, 2014. 

In 2015, Noss recorded monthly draws to himself (to pay for personal expenses or to support other entities owned solely by him) in the approximate amount of $219,555. 

In 2016, Noss transferred another $136,288 from Full Spectrum Management to his personal accounts.

During the years between 2014-2016, Noss transferred $791,343 from Full Spectrum to personal accounts and business accounts he controlled.

In 2017, the year Noss was canned by the Grand Traverse Academy, he still managed to transfer nearly $53,000 from Full Spectrum Management to his personal accounts.

More on this tomorrow, including the nearly $400,000 paid to Steven Ingersoll and massive cash transfers Noss made from his Full Spectrum piggy bank to his affiliated entities...out of the reach of his creditors.

1 comment:

  1. What crooks and liars - both of them. For justice's sake hope they both get what should be coming their way.