Michael T. Mann, the 49-year-old CEO of Clifton Park, NY-based MyPayrollHR, was arrested and charged with bank fraud, according to Brian Krebs. In court filings, FBI investigators said Mann admitted that in early September 2019 he diverted to his own bank account some USD 35 million in funds sent by his clients to cover their employee payroll deposits and tax withholdings.
According to the criminal complaint against Mann, a New York FBI agent said the CEO admitted that starting in 2010 or 2011 he began borrowing large sums of money from banks and financing companies under false pretences. ‘Mann estimated that he fraudulently obtained about USD 70 million that he has not paid back. He claimed that he committed the fraud in response to business and financial pressures, and that he used almost all of the fraudulently obtained funds to sustain certain businesses, and purchase and start new ones. He also admitted to kiting checks between Bank of America and Pioneer [Savings Bank], as part of the fraudulent scheme.’
Check-kiting is the illegal act of writing a check from a bank account without sufficient funds and depositing it into another bank account, explains MagnifyMoney.com. According to security researcher Brain Krebs, court records indicate Mann has not yet entered a plea, but that he was ordered to be released under a USD 200,000 bond secured by a family home and two vehicles. His passport also was seized.
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