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On September 5, New York-based payroll company MyPayRollHR closed suddenly, leaving about 8,000 people at some 400 companies without their paychecks — and $30 million unaccounted for.
The FBI launched an investigation and raided the home of MyPayRollHR owner Michael Mann less than two weeks later.
Wall - Street - Journal - Reports - Mann
Now The Wall Street Journal reports that Mann has been charged with bank fraud after he admitted to creating fake companies to obtain $70 million in loans.
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Month - People - Paychecks - Closure - MyPayrollHR
Earlier this month, about 8,000 people were left without paychecks due to the sudden closure of MyPayrollHR, a New York-based payroll software company. Now the owner of MyPayrollHR, Michael Mann, has reportedly admitted to defrauding banks to receive $70 million in loans since 2010.
The Wall Street Journal's Ruth Simon reports that Mann admitted to the crime in a US District Court filing on September 20. Mann told authorities he created multiple false companies to obtain the loans, but his MyPayrollHR business was legitimate.
MyPayrollHR - September - Paychecks - Company - Clients
When MyPayrollHR closed on September 5, about $30 million in paychecks due to the company's clients went missing. According to the Journal, about 8,000 employees at 400 different companies were impacted. The FBI launched an investigation into MyPayRollHR and raided Mann's home on September 16 in search of evidence.
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