Michael Mann. sentenced following billion-dollar money laundering scheme
NEW YORK — A man was sentenced on Wednesday following a massive money-laundering scheme in New York State.
New York Attorney General Letitia James and New York State
Police Superintendent Kevin Bruen announced the sentencing of Michael T. Mann,
51, from Northville. He was sentenced for laundering over $1 billion in stolen
funds from employers, employees, financial institutions and financial companies
over a three-year period.
According to James and Bruen, between 2016 and 2019, Mann
was found to have diverted payroll funds he held on behalf of client-employers
to pay their employees’ paychecks and taxes. This, according to AG James, left
many employees in financial distress.
“Over the course of just a few years, Michael Mann laundered
more than $1 billion on the backs of thousands of employees and businesses in
New York and across the nation,” Attorney General James said in a press
release.
State Police Superintendent Bruen added, “Michael Mann put
together a fraudulent scheme that had a terrible impact on hundreds of small
businesses and thousands of employees nationwide. I want to thank our members
and commend the attorney general and her office for holding Michael Mann
accountable for his actions.”
This investigation dated back to late August 2020 when
Attorney General James filed a felony complaint against Mann that detailed his
money-laundering scheme. As a part of a resolution negotiated by the Office of
the Attorney General and the U.S. Attorney’s Office for the Northern District
of New York, Mann was then ordered to pay over $100 million in restitution.
He also owned or otherwise operated over a dozen entities.
This included payroll services such as ValueWise Corporation and
MyPayrollHR.com, LLC, which were primarily based in Clifton Park. He was found
to have laundered monies embezzled from these payroll companies by diverting
the stolen monies through numerous business accounts that he controlled.
AG James stated that he committed this fraud in an effort to
repay millions of dollars in fraudulently obtained loans and in an effort to
continue defrauding employers, financial institutions, and financing companies
by stealing additional funds. His conviction and sentencing resolve additional
crimes uncovered by the OAG investigation, for which he could have been
charged.
Mann was sentenced on Wednesday, August 4, before the
Honorable James A. Murphy, III in Saratoga County Court. He pleaded guilty to
Money Laundering in the First Degree, a class “B” felony, which will result in
8 to 24 years in state prison.
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Additionally, on Wednesday, Mann was sentenced to 12 years
in prison for his earlier federal guilty plea 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. These sentences will run
concurrent to each other.
The New York State Police, New York State Department of
Labor and New York State Department of Financial Services assisted in this
investigation.
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