Millions in missing paychecks and workers left in the lurch

Source: Aaron Randle, N.Y.Times (Paid Registration)

Nicole Ingram learned that her payroll check for working as a nursing assistant in New Jersey, which had been deposited into her account, was being withdrawn. Thousands of workers across the country received a similar notification. In all, tens of millions of dollars in direct deposit payments suddenly disappeared.

Days before, according to federal authorities, Michael Mann, the president of the payroll management company MyPayrollHR, redirected those payroll funds — $26 million in total — into his own personal accounts.

The shocking development helped uncover a gigantic fraud operation and showed the lack of oversight in the payroll industry. It also laid bare the vulnerability of the Automated Clearing House network — an electronic network for financial transactions in the United States — which is used by millions of people to move trillions of dollars annually, from salaries to Social Security to mortgage and credit card payments.

 

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