Home Scam/Fraud Pioneer Bank defends against payroll litigation, DFS investigation

Pioneer Bank defends against payroll litigation, DFS investigation

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ALBANY – Pioneer Bank of Colonie may be the biggest loser in Michael Mann’s $101 million bank fraud scheme that landed the mysterious Clifton Park payroll company owner in federal prison last fall to serve a 12-year sentence.

Not only did Pioneer lose roughly $35 million in the elaborate scam, but the bank has also had to defend itself from an onslaught of expensive civil litigation filed by former clients and customers of Mann seeking millions of dollars in payroll tax deductions that Mann deposited with Pioneer just before his scheme unraveled following Labor Day weekend 2019.

Mann owned several payroll services companies, including MyPayrollHR and Southwestern Payroll Services, that became embroiled in his downfall. He was diverting payroll deductions from his clients for his own use at various times.

One of the plaintiffs in those civil cases is the U.S. Department of Justice, which claims…

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