ALBANY, N.Y. (WTEN) — The CEO of MyPayrollHR has been charged with bank fraud after causing issues for thousands of people across the country with the paychecks.
Michael Mann, 49, appeared in Federal Court Monday after investigators say he committed a $70 million bank fraud.
According to the complaint, Mann fraudulently obtained at least $70 million in loans from banks and other financial institutions. He allegedly created companies that had no purpose other than to be used in the fraud; fraudulently represented to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtained loans and lines of credit by borrowing against these non-existent receivables. Investigators believe Mann began the fraudulent scheme in 2010 or 2011.
On September 5, 2019, MyPayrollHR, which was based in Clifton Park, suddenly ceased operations after Mann’s banks froze his accounts, suspecting him of fraud. This account freeze affected MyPayrollHR’s clients because, as part of the alleged scheme, Mann diverted clients’ payroll payments to a bank account he controlled.
Mann appeared today before United States Magistrate Judge Daniel J. Stewart and was Mann was released on a financial bond and with pretrial supervision conditions.
If convicted of the charge set forth in the complaint, Mann faces up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision.