}

Total Pageviews

Sunday, November 8, 2020

“COLORABLE CLAIM” Judge In Full Spectrum Management Chapter 13 Bankruptcy Case Upholds Trustee's Compromise; Independent Bank To Pursue Recovery of $1.0+ Million, Investigate Alleged “Fraudulent Transfers” Between Mark Noss, Steven Ingersoll & Grand Traverse Academy For “Improper Termination Of Educational Provider Agreement”

 


In an opinion handed down late Friday, November 6, 2020, U. S. Bankruptcy Judge James W. Boyd affirmed the January 22, 2020 Settlement Agreement struck between Full Spectrum Management's Bankruptcy Trustee and Independent Bank.

The agreement allows the Bank to pursue 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 entity related to the Full Spectrum as permitted by law).

The Bank's agreement with Full Spectrum's Bankruptcy trustee will allow the bank to pursue collection of nearly $800,000 owed by Noss and Noss-related entities, while simultaneously conducting an investigation to discover whether nearly $400,000 paid by Noss to Steven Ingersoll were done with the intent to hinder, delay, or defraud Full Spectrum's creditors.

Under the settlement agreement, the Bank would bear the costs of the litigation and provide the Full Spectrum Management Bankruptcy Trustee with 25% of any gross recovery. 

The Settlement Agreement involved two distinct claims the bankruptcy estate (Full Spectrum Management, LLC) may purse against Dr. Mark D. Noss, Mark D. Noss, O.D., LLC, MDN Development, LLC, and other Noss-related entities.

The first set of claims involved the collection of accounts receivable and/or promissory notes owed by the Noss entities to Full Spectrum Management.

The second set of claims the bankruptcy estate holds are fraudulent transfer claims against Noss, the Noss entities, Steven Ingersoll, Smart Schools Management and other related entities (“Fraudulent Transfer Claims”).

The Receivables and Fraudulent Transfer Claims identified by Independent Bank consist of, but may not be limited to: 

-Dr. Mark Noss: “Owner’s Draw” of $655,500 Noss made to himself between April 21, 2014-December 2016. (An owner's draw, usually just called a "draw", is an amount taken out of money taken out from a sole proprietorship or partnership by the owner for his personal use. It's called a draw because money is drawn out of the business.)

Noss designated the amount an “account receivable” and it appeared to the bank to be a fraudulent transfer. It is unclear from the filing from which business Noss drained the cash he transferred to himself.

-Dr. Mark Noss: loan to Full Spectrum Management, LLC for $28,604, which is an “account receivable” to Full Spectrum to be collected. 

-Full Spectrum Eyecare (an Assumed Name created February 18, 2011 under “Mark D. Noss, O.D., L.L.C.”): Full Spectrum Management lists a loan owed to it by Noss/Full Spectrum Eyecare for $84,632.

-MDN Development, LLC (formed by Noss in 2015 to construct an expansion of the Grand Traverse Academy, an 18-month fiasco that ended in failure): owned exclusively by Noss, it owes Full Spectrum Management, LLC an “account receivable” of $99,133.

A total of $213,369 of “loans” to Noss, MDN Development, LLC and Full Spectrum Eyecare are “accounts receivable” owed to Full Spectrum Management. 

In addition, the Supplemental Compromise motion revealed fraudulent transfer claims against Dr. Steven Ingersoll, and his businesses Smart Schools Management, Inc. and Smart Schools Management of Bay City, LLC for approximately $332,541 received from Noss/Full Spectrum Management between March 19, 2014-April 2016.

In his opinion, Judge Boyd stated the adversary proceeding sets forth “colorable claims” against Noss and Ingersoll. Black's Law Dictionary defines a “colorable claims”colorable claim as a “plausible claim that may be reasonable asserted, given the facts presented and the current law”.

Gee, I hope Steven Ingersoll won't try to plead poverty in this case.

After all, he was able to pay the IRS nearly $3.5 million less than four months ago.


 

 

 .





5 comments:

  1. As always, THANK YOU, Miss Fortune, for all your research, work and investigative skills.

    ReplyDelete
  2. $1.0+ Million gone with the wind, and he needs to pony up another $1.0+ Million. Damn! Rich-people problems.

    ReplyDelete
  3. yep...these guys, in their clueless attempt to "be Bezos" and escape the real-life spend money = owe money, dug their holes deeper and in the process slamdunked kids and parents. Wonder if either is intelligent enough to be writhing in their own stew or not.

    ReplyDelete
  4. OH WOW, so GTA is on the hook, too? bet they can't stand those 2 guys anymore.

    ReplyDelete
    Replies
    1. You hope that the parents and students know what their two former leaders, IVL role models took them all for a financial ride. There were and probably still are some truly excellent staff who have guided students but the community can no longer ignore the facts. Maybe people will finally realize Noss's IVL learning techniques and Excel Institute excelled in one thing for sure: He Excelled in Taking Their Money. After all, Noss took lessons from the kings of cons.

      Delete