On Monday, the CEO and owner of a payroll processing company was arrested and charged with committing $70 million fraud. Michael Mann headed “the cloud-based payroll-and-HR service” company – MyPayrollHR, that was handling payrolls for about 1000 small businesses in the United States. He was accused of illegal acquisition of millions from banks and other financial institutions in a fraud scheme that started between 2010 and 2011.
The company suddenly ended its operations on September 5, and its clients have been informed that their payroll transactions couldn’t be processed. On the same day, the company left its office in Albany, and its web page turned out to be inactive. With the closure of the company, $35 million disappeared, leaving thousands of people without payouts. It happened after Michael Mann’s accounts were frozen by banks that suspected fraud.
The defendant pleaded guilty to the illegal acquisition of millions from banks and other financial institutions.
Earlier, on September 17, the FBI raided the defendant’s home in Edinburgh, New York as part of a multi-million-dollar fraud investigation. He is facing up to 30 years in prison.
Sources: WSJ, BusinessInsider.