New York

MyPayrollHR CEO Arrested and Charged in $70 Million Bank Fraud Scheme

The CEO of a New York payroll company was arrested and charged Monday in a $70 million bank fraud scheme that left hundreds of small businesses across the country scrambling, NBC News reports.

The United States Attorney for the Northern District of New York said Michael Mann, 49, of MyPayrollHR, a payroll processing company, allegedly obtained millions in bank loans and lines of credit over the last decade that he diverted to fake companies.

His company handled payroll for roughly 1,000 businesses across the United States. It shuttered on Sept. 5 after Mann’s banks, suspecting him of fraud, froze his accounts, authorities said.

The Federal Bureau of Investigation set up a webpage for businesses that lost money in the alleged fraud, while Gov. Andrew Cuomo called on the state’s financial services department to investigate and provide answers to victims.

Mann did not enter a plea on Monday, his lawyer, Michael Koenig, told NBC News.

NBC News

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