CAPITAL REGION, N.Y. (NEWS10) – Michael Mann, the former CEO of MyPayrollHR, was sentenced on federal and state charges Wednesday. He was sentenced to 12 years in US District Court, and could spend eight to 24 years behind bars from the state.
“I lost my business because of Michael Mann,” said Bonnie Rosengrant. She built her New Hampshire diner from the ground up, but was forced to close its doors following the hardships of the MyPayrollHR scandal and the financial impact of COVID-19.
Several victims of the scandal were in both courtrooms Wednesday, some detailing how the scheme impacted their business and employees.
“You sort of relive the experience of them, crying in our offices, unable to meet their bills,” said Tricia Canavan, president of United Personnel Services.
Canavan says the scandal also impacted her personally, “I’ve never had my life threatened before, and sort of reliving that, was very difficult.”
Mann pleaded to all charges he faced last August. In September of 2019, employees at hundreds of businesses across the country had paychecks bounce, after Mann’s company, MyPayrollHR, suddenly closed its doors.
“We discovered that all 24 of our employees bank accounts had been hit with a reverse transaction,” explained Kimberly Filion, Director of Finance and HR at Glens Falls-based JMZ Architects.
Mann addressed the court during his sentencing, apologizing to his victims and taking responsibility for his actions.
“I feel sick when I think of the damage that is done. I should’ve used better judgment and I’m deeply sorry,” he said.
Some of those impacted don’t believe he understands the magnitude of the scheme, but say the sentencing helps them find a bit of closure.
“The hardship, the amount of time is never enough,” said Filion.
Mann was sentenced on federal charges of bank fraud, wire fraud conspiracy, aggravated identity theft and false tax filing, as well as state money laundering charges.
A judge in US District Court in Albany sentenced Mann to 12 years for his federal charges, while he was handed an eight to 24 year sentence from the state.
The sentences will run concurrently.
Mann’s scheme continued over the course of six years, and included obtaining tens of millions of dollars in loans, fraudulently obtaining lines of credit and misappropriating payroll monies.
MyPayrollHR closed shortly after Mann’s corporate funds at Pioneer bank were frozen at the end of August 2019.
Mann was also ordered to pay just over $101 million in restitution to numerous financial institutions across the country.
He is ordered to surrender to prison by September 21st.