“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.