From the "Deeply disturbing", files: Payroll company MyPayrollHR closes without warning and tens of thousands of employees from 4,000 companies have their paychecks totaling up to $35 MILLION withdrawn - leaving many unable to pay bills or feed their families
- The FBI is now investigating after MyPayrollHR, a payroll service provider based in Clifton Park, New York, shut down without warning last week
- The abrupt closure caused about $35 million worth of paychecks to vanish from the personal bank accounts of workers across the country
- Paychecks were deducted from people's bank accounts after they had been paid
- Some workers had their original paycheck amount deducted up to three times, leaving them with negative bank account balances
- It is not yet clear where the deducted money has gone
The FBI confirmed on Wednesday it was investigating and said it was seeking information from business owners who may have suffered a financial loss due to MyPayrollHR's activity.
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The situation involving MyPayrollHR is believed to have started back on September 4 when the payroll company instructed Cachet Financial Services to withdraw about $26 million from employers.
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The clearing house claims it is a victim of fraud in the MyPayrollHR scandal.
'MyPayrollHR manipulated the account numbers in that electronic file so that the money was taken out of the employer's account and put into an account controlled by MyPayrollHR, not a Cachet settlement account, as it should've been,' Slavkin said.
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'Now all of a sudden Cachet is out $26 million because it's effectively made the payroll for all these companies,' Slavkin said.
Cachet, due to its standard protocol, said they immediately started withdrawing the amounts already distributed to employees to claim back their money.
And now ... finger pointing. - The abrupt closure caused about $35 million worth of paychecks to vanish from the personal bank accounts of workers across the country
- Paychecks were deducted from people's bank accounts after they had been paid
- Some workers had their original paycheck amount deducted up to three times, leaving them with negative bank account balances
- It is not yet clear where the deducted money has gone
The FBI confirmed on Wednesday it was investigating and said it was seeking information from business owners who may have suffered a financial loss due to MyPayrollHR's activity.
...
The situation involving MyPayrollHR is believed to have started back on September 4 when the payroll company instructed Cachet Financial Services to withdraw about $26 million from employers.
...
The clearing house claims it is a victim of fraud in the MyPayrollHR scandal.
'MyPayrollHR manipulated the account numbers in that electronic file so that the money was taken out of the employer's account and put into an account controlled by MyPayrollHR, not a Cachet settlement account, as it should've been,' Slavkin said.
...
'Now all of a sudden Cachet is out $26 million because it's effectively made the payroll for all these companies,' Slavkin said.
Cachet, due to its standard protocol, said they immediately started withdrawing the amounts already distributed to employees to claim back their money.