FBI Investigates After Millions in Workers' Direct-Deposit Pay Vanishes - NBC Southern California
National & International News
The day’s top national and international news

FBI Investigates After Millions in Workers' Direct-Deposit Pay Vanishes

Some employees said not only did they get stiffed, but the normal amount of their paycheck was withdrawn from their accounts twice

    processing...

    NEWSLETTERS

    Be the Toast of the Breeders’ Cup
    Getty Images/Tetra images RF

    The FBI and the New York State Department of Labor are investigating allegations that a payroll company diverted millions of dollars in employee pay to its own bank account, officials said Thursday.

    NBC News reported that an FBI spokesperson confirmed the investigation after the bureau's Albany, New York, office tweeted that it was "seeking information from business owners who may have suffered financial loss due to the alleged activity of MyPayrollHR and its affiliates."

    A spokesperson for the U.S. Department of Labor said New York state labor officials are also investigating.

    MyPayrollHR, based in Clifton Park, New York, apparently ceased operations last week after direct-deposit company Cachet Financial Services claimed it diverted as much as $26 million in small-business employee paychecks to one of its bank accounts. Cachet handles direct deposit transactions for numerous payroll firms.