MyPayrollHR CEO Michael Mann is being sued by the insurance company Pioneer Bank in the wake of the company’s sudden closure in Clifton Park.
According to papers filed Friday, MyPayrollHR extended a “$42 million revolving line of credit” this past August. That loan is now in default.
The lawsuit says that Pioneer informed Mann on September 11 of multiple defaults, but by then, MyPayrollHR had already closed. Pioneer maintains Mann still hasn’t paid them back and owes them at least $36 million.
MyPayroll HR closed without notifying clients and consumers, leaving some with negative bank account balances.