Owner and Operator of Educational Management Companies Sentenced on Tax Fraud Charges

Steven Ingersoll of Traverse City, Michigan was sentenced yesterday in Bay City, Michigan, to 41 months in prison for federal tax convictions, announced U.S. Attorney Barbara L. McQuade.

Joining McQuade in the announcement were Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation and John K. Gauthier,

Acting Special Agent in Charge, Chicago Area Office U.S. Environmental Protection Agency Criminal Investigation Division.  

Ingersoll was the former owner and operator of Smart Schools Management and Smart Schools, Inc., educational management companies that ran two charter schools in Michigan—one in Traverse City and one in Bay City.  Ingersoll failed to accurately report and pay taxes on payments he received from his educational management companies.

On March 10, 2015, Ingersoll was convicted of one count of tax evasion for 2009, one count of tax evasion for 2010 and one count of conspiracy to defraud the IRS—along with his co-defendant Roy Bradley, Sr—with respect to 2011.

Roy Bradley, Sr., of Bay City was also convicted in December of 2014 of violations of the federal Clean Air Act, for directing workers to improperly remove asbestos during a school renovation project.  In March of 2015, he was sentenced to 60 months on those convictions.  He has not yet been sentenced on his tax related conviction.

United States Attorney McQuade said.  “Business owners and others who cheat on their income taxes are free-riding on the backs of the rest of us who pay our taxes.  We hope that a prison sentence will deter this kind of conduct.”

This case was investigated by agents of the IRS-CI and EPA-CID.