Posted by
Message
TigerinATL
New Orleans Pelicans Fan
Member since Feb 2005
52725 posts

Cloud Payroll Service goes out of business, steals money from customers on the way out
We've talked about smart home devices getting bricked by the manufacturer going out of business. Here people are getting paychecks stolen from them. It really is hard to trust a cloud service that doesn't have major backing these days.

quote:

The problems created by the closing of MyPayrollHR may take a long time to resolve. The FBI has been contacted and lawsuits are expected. Employers are trying to clean up the mess.

...last Thursday began like any other day -- until an employee called. The employee's deposited pay had been withdrawn from her account. The same was true for all seven of the organization's employees.

...Agape Animal Rescue wasn't alone in its experience. Not long after Willis spoke with MyPayrollHR, the Clifton Park NY-based firm said it was closing "due to unforeseen circumstances." The firm had some 4,000 customers, mostly SMB-sized businesses. The total payroll involved was about $26 million. That money is gone and there is no explanation for it. It's unclear how many workers saw reversals in their personal bank accounts.

LINK


efrad
USA Fan
New Orleans
Member since Nov 2007
14947 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
Jesus Christ, that's so fricked up.


Replies (0)
Replies (0)
130
LSU316
Houston Astros Fan
Rice and Easy Baby!!!
Member since Nov 2007
22555 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
And that boys and girls is why you shouldn't use a mom and pop shop to run payroll....sure ADP, PeopleSoft, and Workday cost more....but you don't have to worry about this.


Replies (0)
Replies (0)
50
Sidicous
LSU Fan
Middle of Nowhere
Member since Aug 2015
13495 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
That was the company the now defunct small chain of boutique day surgery centers I worked for used! This time, it really could have been me!


dakarx
Army Fan
Member since Sep 2018
1551 posts
 Online 

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
Missing paychecks is likely just the start of the headaches... these companies are also responsible for cutting W-2s each year. Imagine the headache of trying to piece all that mess together for tax season when the company is gone or assets and everything frozen as they are tied up in legal proceedings


Sidicous
LSU Fan
Middle of Nowhere
Member since Aug 2015
13495 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
quote:

Missing paychecks is likely just the start of the headaches... these companies are also responsible for cutting W-2s each year. Imagine the headache of trying to piece all that mess together for tax season when the company is gone or assets and everything frozen as they are tied up in legal proceedings
Yep, IRS is gonna make the FBI look like fools...oh wait, FBI has already done that to themselves. Anyway, the IRS wants your money, and they will get it, and they don't care about concepts such as "who's at fault" or "intent" either.


TigerinATL
New Orleans Pelicans Fan
Member since Feb 2005
52725 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
quote:

MyPayrollHR CEO Arrested, Admits to $70M Fraud

...Michael T. Mann, the 49-year-old CEO of Clifton Park, NY-based MyPayrollHR, was arrested this week and charged with bank fraud. In court filings, FBI investigators said Mann admitted under questioning that in early September — on the eve of a big payroll day — he diverted to his own bank account some $35 million in funds sent by his clients to cover their employee payroll deposits and tax withholdings.

... “While stating that MyPayroll was legitimate, he admitted to creating other companies that had no purpose other than to be used in the fraud; fraudulently representing to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtaining loans and lines of credit by borrowing against these non-existent receivables.”

“Mann estimated that he fraudulently obtained about $70 million that he has not paid back. He claimed that he committed the fraud in response to business and financial pressures, and that he used almost all of the fraudulently obtained funds to sustain certain businesses, and purchase and start new ones. He also admitted to kiting checks between Bank of America and Pioneer [Savings Bank], as part of the fraudulent scheme.”

LINK /


Korkstand
LSU Fan
Plaquemine, LA
Member since Nov 2003
20069 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
I don't understand. Did he think he would get away with it? What was the plan?


Sidicous
LSU Fan
Middle of Nowhere
Member since Aug 2015
13495 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
quote:

I don't understand. Did he think he would get away with it? What was the plan?
Get filthy rich, serve couple years at ClubFed, retire comfortably.


Replies (0)
Replies (0)
10
SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
375259 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
quote:

I don't understand. Did he think he would get away with it? What was the plan?

usually they think if they can just hold off for x amount o time, things will right and they can divert all the money back

that last act seems more of a personal move, though, like he knew he was about to be fricked and just tried to get as much as he could


TigerinATL
New Orleans Pelicans Fan
Member since Feb 2005
52725 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
What stands out to me is he got at least in the millions if not tens of millions in loans on non existent companies/assets. I guess in the era of online banking all you really need to do is set up a website, a phone number and some social media profiles to look real. Still, wouldn't you have to have some form of financial footprint as a company that would be hard to fake?


SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
375259 posts

re: Cloud Payroll Service goes out of business, steals money from customers on the way out
quote:

fraudulently representing to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtaining loans and lines of credit by borrowing against these non-existent receivables


just a bunch of fraud all around


Replies (0)
Replies (0)
00
first pageprev pagePage 1 of 1next pagelast page
refresh

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram