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Friday, July 17, 2020

DEFAULT IS NOT IN OUR STARS, BUT IN OURSELVES: Full Spectrum Management Bankruptcy Trustee Seeks Default Judgment Against Steven Ingersoll, “Smart Schools” Entities


Steven Ingersoll ignored the April 30, 2020 adversary complaint filed against him, and several of his “Smart Schools” business entities, in federal bankruptcy court by Kelly M. Hagan, the Chapter 7 Bankruptcy Trustee for the estate of Full Spectrum Management, LLC. 

Longtime Ingersoll associate Mark Noss formed Full Spectrum on March 19, 2014 to assume management of the cash cow known as the Grand Traverse Academy.

A “notice of default” filed yesterday revealed Ingersoll “failed to plead or otherwise defend in this adversary proceeding as required by law.” 

According to yesterday’s filing “Smart Schools Management, Inc., Smart Schools Management of Bay City, LLC, Steven Ingersoll and Smart Schools, Inc. may not either personally or through counsel defend this adversary proceeding either by appearing in court, by filing pleadings or other papers with the court, or otherwise, without first setting aside the default”—responding to the April 30, 2020 complaint.

Without a response from Ingersoll, Hagan can obtain a default judgment against him and his business entities.

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

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. 

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”.

3 comments:

  1. Looks like Ingersoll and Noss weren't /aren't too 'smart' as in Ingersoll's original "Smart Schools" or Noss's "Full Spectrum". They don't seem to be so smart nor see the 'full' spectrum of their negligence. But they have managed so far to take/steal/divert tons of money to their own pockets.

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  2. Wonder if/how the bank can go after their other buildings or possessions. Maybe the Grand Traverse Academy will sue Ingersoll and Noss?

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    1. They will probably try something crooked or look for some loophole somewhere knowing them. Hope the back gets everything that they possibly can. One good thing - no other lending institution will loan them anything in the future.

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