The owner of My Payroll HR, the Clifton Park company that abruptly closed on September 5th has been charged with bank fraud.
Department of Justice officials say that Michael Mann fraudulently obtained $70 million dollars in loans from banks and other financial institutions in 2010 and 2011.
The closure resulted in thousands of workers at hundreds of companies here and around the country finding their direct deposits reversed on their paychecks, and in some case more than once, leaving some workers with negative bank balances.
On September 5th Mann's banks froze his accounts suspecting him of fraud. He was released on $200,000 bond and he had to surrender his passport.
Several weeks ago, Pioneer Bank which provided banking services to the company and extended significant loans to the company told federal regulators that it could potentially lose millions of dollars because of the sudden closing of MyPayroll HR.
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