U.S. Attorney’s Office says business victims must line up for a share of Mann’s $ 17 million

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ALBANY – The U.S. Attorney’s Office in Albany is challenging attempts by two financial institutions to recover most or all of the $ 17 million in government assets seized by Michael Mann, the Clifton Park businessman who defrauded Pioneer Bank and others over $ 100 million in a bank fraud scheme devised two years ago.

Mann could spend up to three decades in federal prison, although his lawyer is asking for much less sentence.

The scandal led to the collapse of Mann’s MyPayrollHR payroll company, leaving thousands of workers across the country without paychecks. Cachet Financial Services, the California-based company that transferred money to Mann and ended up paying clients out of pocket, also had to file for bankruptcy and also searched for Mann’s assets.

Cachet and Pioneer Bank of Colony, where Mann had access to a $ 42 million line of credit, filed claims with the U.S. government to demand between $ 13 million and $ 17 million in cash Mann had in his bank accounts at the Bank of America as it turned into authority in the fall of 2019. There are also 30,000 shares of Pioneer Bank that were also seized by the government, as well as a Jeep.

But in a June 28 case filed with the court, the US attorney’s office said neither Cachet nor Pioneer should have direct access to the assets seized and must line up with the other victims of Mann’s crimes.

“Mann has committed fraud of staggering proportions for years,” the US attorney’s office wrote in its motion to deny Cachet’s request. “While Mann flew from Cachet, he also stole from many others, then outfitted millions of dollars, in a whirlwind of malfeasance. Even though Cachet could trace its money to accounts the government seized, the presence of its money in those accounts – as opposed to other accounts – was a fluke. “

The U.S. Attorney’s Office, led by Acting U.S. Attorney Antoinette Bacon, also argued that Pioneer should not be allowed to simply take all of Mann’s assets, which were seized by the government to pay off $ 100 million. to Mann’s victims, a process that could take years. .


“Pioneer, who was Mann’s main bank, has other plans – she searches all the assets for herself, leaving Mann’s other victims, including
hundreds of small businesses and hundreds of people, with no hope of recouping even a small percentage of their losses, “the US attorney’s office says in its court file.” Pioneer, who has already recovered nearly $ 16 million through self-help, seeks to jump the line and put himself ahead of all the other victims. “

Pioneer and Cachet have several weeks to respond to the government’s motion to deny their claims regarding Mann’s assets.

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