COLONIE — A massive fraud campaign cost Pioneer Bancorp $15.8 million, the Albany-based bank reported in an annual regulatory filing.
The Form 10-K posted Monday for the 12 months ended June 30, 2020, includes the period when fraud schemes run by Michael Mann through Clifton Park-based MyPayrollHR and other companies imploded.
The bank swung to a net loss of $6.5 million in the year ended June 30, 2020, from a net income of $19 million in the previous 12-month reporting period.
Pioneer, which maintained a line of credit for Mann, said it suffered significant losses it may not recover and faces multiple lawsuits and other actions that may further degrade the company’s financial condition.
Under terms of his guilty plea, Mann will be ordered to repay $101 million to more than 1,000 victims but Mann’s attorney and prosecutors alike say he does not have the money.
At the end of June, Pioneer had 245 full-time employees and 22 part-timers at its Colonie headquarters and 21 other locations.