Bay City, MI – Steven Jay Ingersoll, former owner and operator of Michigan-based charter school management companies Smart Schools Management and Smart Schools, Inc., was sentenced to 41 months in federal prison on December 16, 2016, following convictions for tax evasion and conspiracy to defraud the Internal Revenue Service (IRS). The sentencing, announced by U.S. Attorney Barbara L. McQuade, concludes a case highlighting a pattern of financial misconduct linked to the operation of the Traverse City and Bay City charter schools.
Ingersoll’s crimes involved the deliberate failure to accurately report and remit taxes owed on payments received through his educational management companies. Investigators from the IRS-Criminal Investigation (IRS-CI) and the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID) uncovered a scheme to conceal income and evade tax obligations. The investigation revealed that Ingersoll, along with co-defendant Roy Bradley, Sr., conspired to defraud the IRS over several years.
A jury convicted Ingersoll in March 2015 on one count of tax evasion for 2009, another for 2010, and one count of conspiracy to defraud the IRS with respect to 2011. The charges stem from a deliberate effort to underreport income and avoid paying legally required taxes. The investigation broadened to include concerns regarding improper handling of hazardous materials at one of the charter school locations.
Connection to Asbestos Removal Violations
The case is intricately linked to a separate conviction of Roy Bradley, Sr. in December 2014. Bradley, convicted of violations of the federal Clean Air Act, directed workers to improperly remove asbestos during a renovation project at the Bay City charter school. He was subsequently sentenced to 60 months in prison. This connection suggests a potential pattern of disregard for both financial and environmental regulations within the management structure of the schools.
Legal Ramifications and Penalties
Ingersoll was found guilty of violating 26 U.S.C. 7201 (Tax Evasion), which carries a maximum penalty of five years in prison and a $250,000 fine. He was also convicted under 18 U.S.C. 371 (Conspiracy to Defraud the United States), which is punishable by up to five years imprisonment and a $250,000 fine. The 41-month sentence reflects the severity of the financial crimes and the court’s determination to deter similar conduct.
U.S. Attorney’s Statement
“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,” stated U.S. Attorney McQuade. “We hope that a prison sentence will deter this kind of conduct.” The case serves as a reminder that federal authorities are actively investigating and prosecuting financial crimes, particularly those involving the misuse of funds within educational institutions.
Key Facts
- Defendant: Steven Jay Ingersoll
- State: Michigan
- Charges: Tax Evasion, Conspiracy to Defraud the IRS
- Sentence: 41 months in prison
- Co-defendant: Roy Bradley, Sr. (Convicted of Clean Air Act violations)
- Companies Involved: Smart Schools Management, Smart Schools, Inc.
- Statutes Violated: 26 U.S.C. 7201, 18 U.S.C. 371
Source: EPA ECHO Enforcement Case Database
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