Michael Mann gets 12-year sentence in $101 million Clifton Park-based MyPayrollHR national fraud
Aug. 4—ALBANY — Michael Mann on Wednesday drew a 12-year prison term — significantly less than sentencing guidelines suggest — for a payroll fraud scheme that caused $101 million in losses for businesses large and small as well as thousands of workers.
Federal prosecutors had called for 22 years in prison, slightly more than the minimum specified by the guidelines, and objected to the 12-year sentence handed down by U.S. District Court Judge Lawrence Kahn, a prelude to possibly appealing it.
Mann maintained a Ponzi scheme for years. Toward the end, he was kiting millions of dollars a day between accounts to keep it going. It collapsed at the end of August 2019 when one bank then another froze key accounts used by his Clifton Park company, MyPayrollHR.com.
Hundreds of companies that used his payroll services lost money in the collapse, as did thousands of their employees.
A few large corporations are out millions of dollars; most other victims lost much smaller amounts but suffered great stress because they were not able to absorb even a relatively small loss.
A few of Mann's victims were present for the sentencing, and were not pleased with the leniency shown.
Meanwhile, Mann pleaded guilty in the same scheme to state charges that carry a maximum sentence of 8 to 24 years in prison; the state prison sentence will be served concurrently with the federal sentence.
Kahn ordered Mann to report to federal prison on Sept. 21.
