NY Payroll Company Vanishes With $35 Million

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16 comments

  1. dnew

    |Author

    I remember something like this happening at the company I worked for back in the early 80s, when direct payroll deposit was only a couple years old. Fortunately, I was even then computer-savvy enough to know not to trust something this new and this complex, so I was still getting paper paychecks. But lots of other people had no money or negative money as the withdraw hit twice, then took a couple of days to get deposited three times, or some such nonsense. (I think the first time they ran the transfer in the wrong direction, then tried to reverse it, so you wound up with -2 paychecks instead of +1 paycheck.)

  2. mmarks1138

    |Author

    Brian Krebs is amazing. I haven’t been reading his blog as often lately, but I still check it a few times per month. Saw him speak one time at a conference and it was fascinating.

  3. JonnyBravoII

    |Author

    If you read the entire article,Cachet Financial was the fiduciary for holding the money and they let the transactions go through even though there were problems with the file. They then reversed the reversals which leads me to believe that they screwed up letting the transactions through and they know it.

  4. Beor_The_Old

    |Author

    A restaurant in my city just closed down because the entire staff quit after this happened to them. Apparently there were a lot of issues with the owner and when this happened they all quit.

  5. biodrones

    |Author

    Steal $400 from a cash register and you’re a criminal. Steal $35 million from the bank accounts of people who run those registers and you’re a smart executive.

  6. Halbador5

    |Author

    My company used this payroll company and not only did they disappear, they reversed the payment of the last two paychecks for everyone in the company. Some people were put into the negative in their checking accounts. It is a real mess.

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