Ex-MyPayrollHR CEO Michael Mann pleaded guilty in court Wednesday morning in the federal bank fraud case that led to the abrupt shutdown of MyPayrollHR last year.

Prosectors said Mann fraudulently received tens of millions of dollars in loans that led to $100 million in losses for banks, financial institutions, and other businesses over the course of six years. The sudden shutdown of the company left thousands of people without paychecks. Prosecutors alleged Mann diverted payroll payments to a bank account he controlled.

Melanie O’Malley, whose business O’Malley’s Oven was impacted by the MyPayrollHR shutdown, says while she’s doing okay, others haven’t recovered. 

“The businesses they built from the ground up, they had to close. Some of those businesses closed directly because of MyPayroll, before COVID happened, and some of them could have made it through COVID but didn’t have the cushion they needed because they’re still out tens of thousands of dollars,” says O’Malley.

O’Malley is her business’s only employee, which she says limited the negative fallout she saw from the loss of payroll. 

Mann plead guilty to 12 counts, including nine counts of bank fraud, wire fraud, and identity theft. Mann's attorney acknowledged Wednesday that Mann doesn't have the $101 million he will need to pay in restitution, and it was unclear what a prison term would be. 

“His goal was to cooperate and make as much right as he could make right based upon his conduct and he’s going to continue to do so,” says Michael Koenig, Mann’s attorney.

A sentencing date is set for December 10. Mann has also forfeited $14 million in assets.

“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," U.S. Attorney Grant C. Jaquith said in a statement. "Today’s plea is the start of holding him accountable for the terrible harm he inflicted on these victims, as well as the banks and other companies that trusted him with their money and believed his sophisticated lies.”