Earlier this month, about 8,000 people were left without paychecks due to the sudden closure of MyPayrollHR, a New York-based payroll software company. Now the owner of MyPayrollHR, Michael Mann, has reportedly admitted to defrauding banks to receive $70 million in loans since 2010.that Mann admitted to the crime in a US District Court filing on September 20. Mann told authorities he created multiple false companies to obtain the loans, but his MyPayrollHR business was legitimate.
According to the court filing, Mann told law enforcement that he had transferred the money needed to fund the payroll payments to one of his personal bank accounts. Mann apparently said he transferred the money to an account controlled by Pioneer Bancorp Inc. to temporarily address an outstanding debt. However, Pioneer froze Mann's account, preventing him from cycling the money back out to the appropriate payroll accounts, per the report.
It happens😳