Kerbs: MyPayrollHR CEO Arrested, Admits to $70M Fraud

At Microsoft 365 Nation we believe its essential to keep your eyes wide open with respect to security matters and technology. We don’t always talk about the Microsoft 365 product stack directly but rather we like to offer up broader conversations that make sense.

Brian Kerbs on KerbsOnSecurity published an insightful piece on how the CEO of MyPayrollHR defrauded customers or over $70M. This one hurts because MyPayrollHR was essentially acting as an escrow agent for payroll and tax deposits. It’s a double whammy because SMB Nation actually looked at MyPayrollHR once to act as a vendor to our community.

Here is the story.

“Earlier this month, employees at more than 1,000 companies saw one or two paycheck’s worth of funds deducted from their bank accounts after the CEO of their cloud payroll provider absconded with $35 million in payroll and tax deposits from customers. On Monday, the CEO was arrested and allegedly confessed that the diversion was the last desperate gasp of a financial shell game that earned him $70 million over several years.

Michael T. Mann, the 49-year-old CEO of Clifton Park, NY-based MyPayrollHR, was arrested this week and charged with bank fraud. In court filings, FBI investigators said Mann admitted under questioning that in early September — on the eve of a big payroll day — he diverted to his own bank account some $35 million in funds sent by his clients to cover their employee payroll deposits and tax withholdings.”