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MyPayrollHR's Mann Sentenced To 12 Years In Fraud Case

The criminal complaint against Michael Mann filed in Sept. 2019
The criminal complaint against Michael Mann filed in Sept. 2019

The former head of a Capital Region payroll company has been sentenced to 12 years in prison for a scheme authorities say caused more than $100 million in losses to banks, financial institutions and other companies. Michael Mann, 51, was also ordered to pay restitution of $101 million and forfeit assets already seized by the government, including more than $14.5 million. Utilizing MyPayrollHR, Mann admitted that from 2013 to 2019, he deceived banks and financing companies into loaning his companies tens of millions of dollars. Authorities say Mann could not repay the loans with legitimate business revenues, so he stole and diverted millions of dollars from his payroll companies, and engaged in the daily kiting of millions of dollars among bank accounts he controlled. The scheme collapsed in September 2019, when one of his banks froze his accounts, setting off a chain of events that left his companies unable to process payroll and tax payments for hundreds of small business customers nationwide.

“Today’s sentence holds Michael Mann accountable for his despicable crimes," Acting United States Attorney Antoinette Bacon said in a statement. "For years, instead of growing a legitimate business in Clifton Park, he grew a fraudulent scheme.  Mann inflicted major losses on companies that loaned him money.  He also stole the paychecks of thousands of hard-working people, and the tax payments of hundreds of small businesses, across the country.  Mann caused immense stress for small business owners and fear among employees living paycheck to paycheck, and he justly deserves the term of imprisonment imposed today. This case should be a deterrent to businesspeople who would seek to lie, cheat and steal their way to success.”

“Michael Mann's intricate fraud scheme allowed him to manipulate the system to the tune of $100 million," FBI Special Agent in Charge Janeen DiGuiseppi  said in a statement. "He played a dangerously deceitful game with the paychecks of thousands of hard-working Americans trying to make an honest living. Not only were thousands of employees impacted, but some small business owners lost their livelihoods when they went out of business due to Mann’s criminal scheme. While today’s sentence cannot build back those businesses or give back lost jobs, we can only hope it serves as a resounding message that the FBI, together with our law enforcement partners, will not stand for anyone looking to gamble with the hard-earned incomes of our citizens.”

A co-conspirator pleaded guilty to defrauding two companies in February 2020. 

Jim is WAMC’s Associate News Director and hosts WAMC's flagship news programs: Midday Magazine, Northeast Report and Northeast Report Late Edition. Email: jlevulis@wamc.org
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