Chemung Canal Trust Co. reaches $2.9 million settlement with Pioneer Bank

ALBANY — Chemung Canal Trust Co. is recovering an additional $2.9 million from its fateful participation in funding a $42 million line of credit for jailed local businessman Michael T. Mann nearly a decade ago.

Chemung, which operates in the Albany area as Capital Bank, disclosed in a U.S. Securities and Exchange Commission filing last month that it was dropping a civil lawsuit it filed against Pioneer Bank in 2020 over a $42 million line of credit Pioneer had with Mann and his various businesses, including his Clifton Park payroll processing firm, MyPayrollHR.

The Albany Business Review first reported the news Tuesday…

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