NY Payroll Company Vanishes With $35 Million

ronjor · Sep 11, 2019

MyPayrollHR, a now defunct cloud-based payroll processing firm based in upstate New York, abruptly ceased operations this past week after stiffing employees at thousands of companies. The ongoing debacle, which allegedly involves malfeasance on the part of the payroll company’s CEO, resulted in countless people having money drained from their bank accounts and has left nearly $35 million worth of payroll and tax payments in legal limbo.
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https://krebsonsecurity.com/2019/09/ny-payroll-company-vanishes-with-35-million/

Rasheed187 · Sep 14, 2019

This is a bit worrying. A big bank in Holland named ING had the same problem, it couldn't pay their flex-workers because of a problem with some payrolling company. Looks like this stuff needs to be monitored more closely.

guest · Sep 24, 2019

The owner of a payroll company that suddenly vanished after losing $30 million meant for paychecks has been charged with fraud
September 24, 2019
https://www.businessinsider.de/mypayrollhr-owner-charged-with-bank-fraud-following-fbi-raid-2019-9

Earlier this month, about 8,000 people were left without paychecks due to the sudden closure of MyPayrollHR, a New York-based payroll software company. Now the owner of MyPayrollHR, Michael Mann, has reportedly admitted to defrauding banks to receive $70 million in loans since 2010.

The Wall Street Journal's Ruth Simon reports that Mann admitted to the crime in a US District Court filing on September 20. Mann told authorities he created multiple false companies to obtain the loans, but his MyPayrollHR business was legitimate.
According to the court filing, Mann told law enforcement that he had transferred the money needed to fund the payroll payments to one of his personal bank accounts.
However, Pioneer froze Mann's account, preventing him from cycling the money back out to the appropriate payroll accounts, per the report.

The Journal reports that Bank of America Corp also froze Mann's accounts when it was determined that he was transferring millions of dollars between accounts at Bank of America and Pioneer.
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ronjor · Oct 25, 2019

Cachet Financial Reeling from MyPayrollHR Fraud

When New York-based cloud payroll provider MyPayrollHR unexpectedly shuttered its doors last month and disappeared with $26 million worth of customer payroll deposits, its payment processor Cachet Financial Services ended up funding the bank accounts of MyPayrollHR client company employees anyway, graciously eating a $26 million loss which it is now suing to recover.
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NY Payroll Company Vanishes With $35 Million

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