CEO in scheme that left workers without paychecks pleads

Posted 8/12/20

ALBANY, N.Y. (AP) — The former head of payroll company pleaded guilty Wednesday to federal charges related to a scheme that caused more than $100 million in losses to banks and businesses and left …

To Our Valued Readers –

Visitors to our website will be limited to five stories per month unless they opt to subscribe.

For $5.99, less than 20 cents a day, subscribers will receive unlimited access to the website, including access to our Daily Independent e-edition, which features Arizona-specific journalism and items you can’t find in our community print products, such as weather reports, comics, crossword puzzles, advice columns and so much more six days a week.

Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.

Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.

Sincerely,
Charlene Bisson, Publisher, Independent Newsmedia

Please log in to continue

Log in
I am anchor

CEO in scheme that left workers without paychecks pleads

Posted

ALBANY, N.Y. (AP) — The former head of payroll company pleaded guilty Wednesday to federal charges related to a scheme that caused more than $100 million in losses to banks and businesses and left thousands of workers at small businesses without paychecks.

Former ValueWise CEO Michael Mann faces from 17 years to 32 years in federal prison and will have to pay $101 million in restitution.

Mann admitted in federal court in Albany that from 2013 to September 2019, he engaged in a fraudulent scheme to deceive banks and financing companies into loaning his companies tens of millions of dollars. Because Mann couldn't repay the loans with legitimate business revenues, he diverted millions entrusted to his payroll companies, according to federal prosecutors.

The scheme collapsed in September after one of his banks froze his accounts, eventually leaving his Albany-area payroll companies suddenly unable to make payroll for hundreds of small business customers nationwide, prosecutors said.

“Michael Mann’s fraud was staggering," U.S. Attorney Grant C. Jaquith said in a prepared statement. “He caused more than $100 million in losses and wove a web of deception so complex that it eventually ensnared hundreds of small businesses and several thousand workers across the country.”

Mann, 50, pleaded guilty to conspiracy to commit wire fraud, aggravated identity theft, nine counts of bank fraud and filing a false tax return.

He is the second person to plead guilty in connection with the scheme. He is scheduled to be sentenced on Dec. 10.

Comments