Michael Mann Charged with Bank Fraud
ALBANY, NEW YORK – Michael T. Mann, age 49, of Saratoga County, New York, appeared in federal court today on a criminal complaint charging him with committing a $70 million bank fraud.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the complaint (copy attached), Mann fraudulently obtained at least $70 million in loans from banks and other financial institutions. He 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. Mann began the fraudulent scheme in 2010 or 2011.
Mann operates MyPayrollHr, based in Clifton Park, New York.
Until this month, MyPayrollHR processed payroll and tax payments for approximately 1,000 small-business clients located across the country.
On September 5, 2019, MyPayrollHR 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 fraudulent scheme, Mann diverted clients’ payroll payments to a bank account he controlled.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mann appeared today before United States Magistrate Judge Daniel J. Stewart. 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. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, with assistance from the New York State Attorney General’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
The FBI continues to seek information from people and businesses who may have suffered financial loss due to the alleged activities of Mann, MyPayroll, and affiliated companies. Information can be sent to the FBI by filling out a form on the FBI’s web site, available at https://forms.fbi.gov/seeking-victim-information-in-mypayrollhr-investigation.