Michael T. Mann, 50, of Saratoga County, New York, stood in federal court today and admitted to masterminding a six-year financial crime spree that bled more than $100 million from banks, lenders, and the life savings of thousands of workers across the country. The CEO of ValueWise Corporation and its subsidiary MyPayrollHR.com LLC pleaded guilty to a sweeping fraud scheme that collapsed in September 2019, leaving a trail of unpaid wages, shattered trust, and financial ruin in its wake.
Mann admitted that from 2013 to 2019, he falsified millions in revenues and receivables to secure loans from three financing companies in New York, Colorado, and California. He forged fake invoices claiming that health care giant UnitedHealth Group and its subsidiary OptumInsight owed his companies money—phantom debts he then used as collateral to siphon tens of millions in loans. When reality threatened to catch up, he doubled down, stealing payroll funds entrusted to his companies and playing a high-stakes game of check kiting across accounts he controlled.
The fraud metastasized as Mann created shell businesses solely to inflate his financial profile and secure a $42 million line of credit from Capital Region banks by 2019. He lied to lenders, claiming these fake firms had lucrative contracts with 3M, Best Buy, and T-Mobile. He hid his ballooning debt, used new credit lines to cover old loans, and fed falsified tax returns and financial statements to auditors—lies that were then passed on to banks in official reports.
The house of cards fell in early September 2019 when one bank froze Mann’s accounts, triggering a domino effect. MyPayrollHR.com abruptly stopped processing payments, leaving hundreds of small business clients unable to pay their employees. Thousands of workers—many living paycheck to paycheck—were left in financial freefall. Some companies managed to recover, but others faced permanent damage to their reputations and operations.
U.S. Attorney Grant C. Jaquith didn’t mince words: “Michael Mann’s fraud was staggering. 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.” He called the guilty plea the first step toward accountability for the “terrible harm” inflicted on victims who believed in Mann’s polished lies.
FBI Special Agent in Charge Thomas F. Relford emphasized the human toll: “Helping himself to those funds left the businesses who trusted him with their payroll unable to pay their employees who survive on timely paychecks.” He vowed the FBI would continue pursuing those who exploit the financial system for personal gain. Mann pleaded guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, nine counts of bank fraud, and one count of filing a false tax return. Sentencing is pending.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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