The U.S. Department of Justice has announced the sentencing of the 51-year-old former CEO of ValueWise Corporation, of Clifton Park, New York, as well as subsidiary companies, including MyPayrollHR.com LLC, to 144 months in prison for fraud.
The fraudulent conduct caused more than $100 million in losses to banks, financing companies, and other businesses. The defendant misappropriated of millions of dollars entrusted to payroll companies that he owned.
In addition to the prison sentence, the defendant was also sentenced to three years of post-imprisonment supervised release; to pay restitution to victims in the total amount of $101,038,793.31; and to forfeit assets already seized by the Government, including $14,522,474.90 contained in bank accounts, as well as 30,000 common shares of a bank.
The defendant admitted 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 he could not repay the loans with legitimate business revenues, he expanded the fraud by stealing and diverting millions of dollars that were entrusted to his payroll companies and engaging in the daily kiting of millions of dollars among bank accounts he controlled. "ValueWise CEO Michael Mann Sentenced to 144 Months in Prison for $100 Million Fraud" www.doj.gov (Aug. 04, 2021).