Financial services company out $26 million after closure of MyPayrollHR

Finance

Clifton Park, N.Y. (News10) – A company once partially blamed for removing money from workers’ bank accounts across the country says it’s the largest victim of MyPayrollHR’s sudden closure.

Cachet Financial Services out of Panacea, California was a middleman of sorts between MyPayrollHR and its clients. Cachet is responsible for direct deposit for thousands of workers across the country whose employers use MyPayrollHR for payroll.

Last week, MyPayrollHR informed clients it was no longer able to process any further payroll transactions. Cachet alleges due to a complex bank coding change, $26 million bound for direct deposit disbursement instead was rerouted to a Pioneer bank account in MyPayrollHR’s name.

An attorney for Cachet says they tried to recoup money fraudulently paid to workers across the Capital Region and the country. Many noticed on their bank statements a debit from Cachet financial services and some blamed that firm for the losses.

The attorney for Cachet says the company later decided to bear the brunt of the alleged fraud, paying out the $26 million in payroll checks with it’s own money. They say the FBI is aware of the original $26 million which was wired to the Pioneer account, but wouldn’t comment on whether the funds are still there.

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