The founder of a small charter chain in Michigan has been sentenced to 41 months in prison. 

 

I have written about Ingersoll here and here.

 

Steven Ingersoll founded the Grand Traverse Academy in Michigan.

 

Blogger Anita Senkowski has followed this scandal from its beginnings. She writes about Ingersoll’s sentencing here.

 

In its December 15, 2016 sentencing memorandum, the government stated:

 

In general, the four purposes of sentencing are retribution, deterrence, incapacitation, and rehabilitation. In a tax case such as this, the sentencing purposes of retribution and deterrence are especially important. A sentence within the guideline range of 41 to 51 months is necessary to accomplish those purposes.

 

“When looking first at the need for retribution, Ingersoll has committed a serious offense, and his sentence should reflect it. His offense was not a one-time lapse in judgement, or a record-keeping mistake with purely civil tax consequences. His criminal tax-loss amount exceeds a million dollars. And he was convicted of tax evasion and fraud with respect to three years of false income tax returns.

 

Ingersoll has done nothing to repay the money that he owes. To the contrary, he has continued to violate the tax laws to this day by failing to file any personal income tax return since 2012.

 

The profit and loss statement that Ingersoll previously filed with the court shows that from 2012 to 2015, he earned over two million dollars in gross income. The only income tax payment he has made for those tax periods, however, was a $10,000 payment submitted when he applied for an extension to file his 2012 return.

 

Defendant’s repeated and significant criminal conduct warrants a lengthy sentence.”

 

 

Here is a quote from an earlier post linked above:

 

“This is one of the most curious, most convoluted charter scandals I have come across. Of course, it happened in Michigan, where about 80% of charters operate for-profit and where the state exercises minimal oversight of the charter sector.

 

“In 1999, an optometrist named Steven Ingersoll was among the first to see the potential in the charter industry. He developed his own pedagogy called Integrated Visual Learning and opened the first of four charters, Grand Traverse Academy. The board of directors were other optometrists who liked Ingersoll’s ideas. Certainly, optometrists would be drawn to a teaching method based on “visual learning.”

 

“There were chummy relationships among Ingersoll, the management company he hired, and board members:

 

“It was not until lawyers for the school began asking questions that the tangled financial relationship between Ingersoll’s management company and the charter he founded began to unravel, culminating in the most significant federal criminal case in the history of Michigan’s 20-year-old charter school industry. Ingersoll, who started Smart Schools Management, Inc., stands accused of illegally diverting construction loan money for another charter school to his private account, in part to pay back money he had taken from the Grand Traverse charter. His hand-picked members on the school board knew he had advanced himself money from Grand Traverse, but had no problem with the arrangement, school records show.
“Ingersoll will go on trial next month on seven criminal charges of bank fraud and tax evasion. The allegations of financial self-dealing and cozy relations between Ingersoll, his associates and board members could not come at a worse time for the Michigan charter movement. The state’s powerful, mostly for-profit charter school industry has found itself on the defensive since the Detroit Free Press published a devastating series last June chronicling how charters receive nearly $1 billion a year in state taxpayer money with little accountability or transparency on how that money is spent. The series detailed how board members at some charter schools were forced out when they pushed to learn more about finances from management companies, and how state law failed to prevent self-enrichment by those operating some low-performing charter schools.”

 

“One blogger, Anita Senkowski, doggedly followed the case of Steven Ingersoll and posted documents. Her blog is called “Glistening Quivering Underbelly,” where she calls herself Miss Fortune. She described Ingersoll as the poster boy for Michigan’s lack of charter oversight.”

 

Ingersoll was convicted and has been sentenced to 41 months in prison.