MyPayrollHR CEO Arrested, Admits to $70M Fraud
Summary: Michael T. Mann, the 49-year-old CEO of Clifton Park, NY-based MyPayrollHR, was arrested and charged with bank fraud after FBI investigators said he admitted diverting about $35 million in client payroll and tax deposits to his own account in early September 2019. Mann told investigators he had borrowed roughly $70 million under false pretenses since 2010 or 2011 using shell companies and non-existent receivables, and that his diversion of payroll funds to a Pioneer Bank account set off a chain in which Cachet Financial Services reversed deposits, briefly pulling almost $26 million from accounts of employees at more than 1,000 companies.
What's compelling: A single payroll provider's CEO moved $35 million of other companies' payroll money, and the reversal that followed hit employees at more than 1,000 companies in their own bank accounts - the loss landed on workers, not just on the vendor.
Read the original at Krebs on Security ↗
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