Monday, August 21, 2017

PAY THE DAMN $505 FILING FEE, ALREADY! Roy Bradley Cries Poor Mouth, But Owns Property Worth At Least $155,000! (Or Was It $282,595...Or Maybe $528,000?)

BREAKING NEWS Roy Bradley, convicted (along with his co-defendant Steven Ingersoll) in March 2015 of tax evasion, is not a pauper.

And he's been moved from a prison in Milan, Michigan, to another corrections institution in Oklahoma City, Oklahoma.

Bradley filed an appeal back in June of his tax fraud conviction in the U. S. Court of Appeals for the Sixth Circuit.

In a June 21, 2017 affidavit, Bradley listed three Bay City, Michigan, properties:

1700 Center Avenue (Bradley's residence) $100,000
1016 14th Street $20,000
510 Columbus Avenue $35,000

The Columbus property houses Bradley's Thunder Cycle shop and his wife's used car business.

Steven Ingersoll originally purchased the property for $25,000 on March 10, 2010 and then “sold” (ahem) it to Bradley for $35,000. Word on the street is that Ingersoll washed some money through Bradley with this purchase, and Bradley ended up not forking over any payment.

However, Bradley disclosed assets of $528,000 to his probation officer during the preparation of his January 23, 2015 Presentence Report. That report found that Bradley's net worth was $282,595, and Bradley has not made any attempt to reconcile the difference between his January 2015 disclosures and his June 21, 2017 affidavit.

So what is it with all this talk of assets, anyway?

Bradley's trying to dodge having to pay the $505 appeal filing fee, that's why.

I'll leave the last words to U. S. District Court Judge Thomas L. Ludington:

“Given his outstanding financial resources and the unexplained disparities among his various disclosures, Bradley’s motion to proceed in forma pauperis on appeal will be denied.”

EMBEZZLEMENT! ASSAULT & BATTERY! Grand Blanc, Michigan, “Investment Advisor” Jason K. Bescoe Arraigned In Genesee County's 67th District Court, Charged With Embezzlement, Assault & Battery; Bescoe Remains Behind Bars After Failing To Make $300,000 Bond

BREAKING NEWS Goodrich, Michigan, resident Jason Bescoe (at left), whose personal Investment Advisor registration and that of his Research Money Management, LLC firm were suspended on August 16 by Michigan's Corporations, Securities & Commercial Licensing Bureau (CSCL), was formally arraigned on Saturday, August 19, in Genesee County's 67th District Court.

Bescoe, the owner of a Flint, Michigan area country club, the Atlas Valley County Club, was charged with one count of embezzlement-over $100,000. In addition, Bescoe was also charged with one count of assault and battery. 

Bescoe plead not guilty to the assault charge, and bond in that charge was set at $1,000.

A probable cause hearing for the embezzlement charge was set for August 31 at 1:00 p.m., and Bescoe remains behind bars in the Genesee County jail after failing to post the $301,000 bond required ($300,000 for the embezzlement and $1,000 for the assault charge) for his release.

In July, Genesee County Sheriff Robert Pickell announced his office was investigating a complaint from an individual claiming her elderly parents were being financially exploited by Bescoe. 

Additional information about Bescoe, his Arabian horse habit, and his Florida hedge fund, can also be found on this blog.

Sunday, August 20, 2017


The line between right and wrong was moved a little every day—until it became impossible to know where Steven Ingersoll and his Smart Schools Management company ended and the Grand Traverse Academy began.

On August 21, how the Grand Traverse Academy board's attempt at revisionist history, September 14, 2014's “History of Grand Traverse Academy”, instead became a total cock-up.

Friday, August 18, 2017

STRIPPED! Horse-Loving Goodrich, Michigan Financial Flim-Flammer Loses Conditional Michigan Investment Advisor Registration; Shouldn't The Website For Bescoe's “Wealth Preservation and Investment Management for the Affluent” Research Money Management, LLC Be Suspended?

On August 16, Michigan’s Corporations, Securities & Commercial Licensing Bureau (CSCL) issued orders summarily suspending the investment adviser registration of Research Money Management, LLC and Jason K. Bescoe, both of Grand Blanc, Michigan. 

According to a CSCL news release, Bescoe and his firm failed to submit required reports under a conditional registration agreement they entered with CSCL in April 2016. 

The conditional registration agreement was due to Bescoe’s disciplinary history, which included conducting business as an investment adviser representative without being registered.

“The Michigan Uniform Securities Act allows CSCL to issue conditional registrations that require additional reporting by an investment adviser,” said CSCL Director Julia Dale in the news release. “Mr. Bescoe and his firm have failed to comply with the conditions of the registration, so the suspensions became necessary.” 

CSCL agreed to issue a registration to Mr. Bescoe in April 2016 when he and the firm agreed to a number of conditions, including required quarterly reporting to CSCL by a third-party compliance specialist. 

The conditional registration also allowed for an immediate suspension if Bescoe or the firm failed to comply with the conditions. Bescoe, the firm, and the compliance specialist failed to file required reports, prompting CSCL to summarily suspend Bescoe’s and Research Money Management, LLC’s registrations. 

Read more information about Bescoe and his case at these links: here, here—and here.

ACCOUNTS DECEIVABLE: Grand Traverse Academy Addicted To Short-Term Borrowing; Jonesing For Benjamins Under Ingersoll Regime Put School In Multi-Million Dollar Hole!

NOTE 11 - Short-Term Notes 2009 

The Academy had two short-term notes payable at the end of fiscal year ending June 30, 2009 totaling $3,200,000. There was a State Aid Anticipation note from the Traverse City State Bank in the amount of $1,200,000 with an interest rate of 3.75 % due by March of 2010. There was also a note with the Traverse City State Bank that had a balance of $1,303,575 which was paid off in July of 2008 through a refinancing with Fifth Third bank for a new State Aid Anticipation note. In addition to the refinanced amount of $1,303,575 another $2,696,425 was included to establish the new State Aid Anticipation note for a total $4,000,000 with a variable interest rate not to exceed 7% per annum. At the end of June 30, 2009 there was still $2,000,000 yet to be paid.
Grand Traverse Academy Audited Financial Statements
Fiscal year ending June 30, 2009

Between 2007 and 2014, the Grand Traverse Academy's board of directors enabled and covered up Steven Ingersoll's siphoning of millions from the Traverse City charter school, hastening its descent into a nearly untenable financial position. 

But this woeful financial situation did not sneak up on the Grand Traverse Academy's board of directors—no, it was created by their actions. 

The Traverse City charter school’s current financial crisis was exacerbated by its board's decision in 2014 to waive recovery of millions of dollars looted from the school by its former manager, Steven Ingersoll, instead writing it off to bad debt and accepting fake bank records from Ingersoll.

The board's decision, made during the fiscal year ending June 30, 2013, to accept forged bank statements from Steven Ingersoll purporting to show a $1,813,330 repayment, was not reversed even when that repayment was later invalidated by federal prosecutors using Ingersoll's authentic bank statements!

Beginning in the fiscal year ending June 30, 2009, the Grand Traverse Academy's manager, Steven Ingersoll, began to borrow massive sums, likely due to the impact his embezzlement was beginning to have on the Academy's throttled cash flow. 

The Academy had two short-term notes payable by the end of the fiscal year ending June 30, 2009 totaling $3.2 million dollars. At the end of June 2009, there was still $2,000,000 yet to be paid. 

By the end of the fiscal year ending June 30, 2011, the Academy had two short-term notes totaling $5,587,294 (with a $5,537,219 principal and $50,076 accrued interest). 

Starting in May of 2011, the State of Michigan began taking payments for a $2.0 million State Aid Anticipation Note with the Michigan Finance Authority directly out of state aid payments prior to distributing the remaining funds through Lake Superior State University and Wells Fargo. 

Although the Academy paid off a remaining $600,000 balance to the Traverse City State Bank and $3,400,000 due to charter school finance company Robert W. Baird & Co., the Academy borrowed an additional $6,400,000 in State Aid Anticipation Notes during the year from the Michigan Finance Authority, the Academy was left with an ending balance of $5,537,218 at June 30, 2011 — nearly identical to the amount it owed at the beginning of that year. 

In the fiscal year ending June 30, 2012, the Academy began the year with a short-term debt balance of $5,537,218. The Academy paid off two remaining notes from the previous fiscal year with a new short-term note for $4,600,000 million in August 2011. The balance at the end of June 30, 2012 was $4,208,719. 

During the fiscal year ending June 30, 2013, the Academy borrowed another $4,275,000 in short-term State Aid Anticipation Notes. 

With a beginning balance of $4,208,719, and payments totaling $5,230,990, the Grand Traverse Academy was left with an ending balance of $3,252,729 as of June 30, 2013. 

It's like the guy who goes to his bank and says he just wants to borrow enough money to get out of debt. 

Instead of a pattern of subsequent borrowing to pay off the previous year's obligations, the school should have been building cash reserves instead of relying on larger and larger loans. 

But it couldn't.

The money was instead flowing out of the Grand Traverse Academy and into the pockets of Steven Ingersoll—and others.

Eight days to D-Day: the Grand Traverse Academy's expected August 26th default on a $2,341,536.74 balloon payment to Traverse City State Bank.

and why that debt sank the charter school like the Titanic.