MyPayrollHR's Mann Pleads Guilty In Sprawling Fraud Case
A Capital Region businessman pleaded guilty today to orchestrating a years-long fraud that caused more than $100 million in losses to banks, financing companies, and other businesses.
The U.S. Attorney’s office says Michael Mann of Saratoga County admitted that from 2013 to September 2019, he engaged in a scheme to deceive banks and financing companies into loaning his businesses tens of millions of dollars.
Authorities say since Mann could not repay the loans with legitimate business revenues, he expanded the fraud, by stealing and diverting millions of dollars that were entrusted to his payroll companies.
The scheme collapsed in September, when one of Mann’s banks froze his accounts, setting off a chain of events that left his payroll companies unable to make payroll for hundreds of small businesses nationwide. Mann is scheduled to be sentenced on December 10.
The U.S. Attorney’s office says the 50-year-old will be sentenced to 2 years in prison for identity theft and faces maximum terms of more than 50 years for wire fraud conspiracy, bank fraud and filing a false tax return. Mann has agreed to pay more than $100 million in restitution and to forfeit assets of more than $14 million.