MayPayrollHR CEO Arrested, Admits To $70 Million Fraud (krebsonsecurity.com) 37
After absconding with $35 million in payroll and tax deposits from customers, CEO of MyPayrollHR Michael T. Mann was arrested and charged with bank fraud. "On Monday, [Mann] allegedly confessed that the diversion was the last desperate gasp of a financial shell game that earned him $70 million over several years," reports Krebs On Security. From the report: 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. After that stunt, two different banks that work with Mann's various companies froze those corporate accounts to keep the funds from being moved or withdrawn. That action set off a chain of events that led another financial institution that helps MyPayrollHR process payments to briefly pull almost $26 million out of checking accounts belonging to employees at more than 1,000 companies that use MyPayrollHR.
At the same time, MyPayrollHR sent a message (see screenshot above) to clients saying it was shutting down and that customers should find alternative methods for paying employees and for processing payroll going forward. In the criminal complaint against Mann (PDF), a New York FBI agent said the CEO admitted that starting in 2010 or 2011 he began borrowing large sums of money from banks and financing companies under false pretenses. [...] Court records indicate Mann hasn't yet entered a plea, but that he was ordered to be released today under a $200,000 bond secured by a family home and two vehicles. His passport also was seized.
At the same time, MyPayrollHR sent a message (see screenshot above) to clients saying it was shutting down and that customers should find alternative methods for paying employees and for processing payroll going forward. In the criminal complaint against Mann (PDF), a New York FBI agent said the CEO admitted that starting in 2010 or 2011 he began borrowing large sums of money from banks and financing companies under false pretenses. [...] Court records indicate Mann hasn't yet entered a plea, but that he was ordered to be released today under a $200,000 bond secured by a family home and two vehicles. His passport also was seized.
Outsourcing payroll (Score:3)
Ummm.... sure! Thanks!!!
Bye!!!!
I think we need to start limiting outsourcing (Score:3)
CEO Michael T. Mann (Score:1)
Add another CEO to the list of criminals and assholes running the world into the ground...
People are suffering, people are dying, entire systems are collapsing. I don't want your hope. I want you to panic. Everything is not awesome. We have to acknowledge that older generations have failed. The political movements have failed. The corporate leadership is failing. Society is collapsing.
When you run off to work for these crooks, it should not fill you with pride; it should fill you with shame.
Feel the fear I
I like that phrase (Score:3)
I think the left wing could use with a bit more fearmongering. The Right Wing is great at it. Uses it to good effect.
There is a time to be afraid. Fear can be a positive thing when it motivates action to resolve what causes fear.
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Precisely how many businesses have you run where you had to process payroll?
Payroll is not difficult (Score:1)
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If, like the vast majority so small businesses in the US, you use Quickbooks or one of the other big software accounting packages, payroll is built in for a fee. It's very simple to pay people this way. I don't know the point of using a "payroll service" for a company smaller than 50 people.
It's the withholding of payroll deductions... many small companies with cash flow problems have fallen into the trap of barely making the net payroll week after week, and then falling impossibly behind on the payroll deductions like FICA, SS, Medicare, 401k, child support, etc.
It's best for some to have that money taken out of their hands, since misusing payroll deductions is stealing, and going out of business is but a life lesson.
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That's all built into Quickbooks. It's 100% automatic.
That assumes Intuit does not drop your completely legal business because they have decided it is politically incorrect.
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So what you are telling the world is that you don't actually understand what it takes to actually get people paid. Here is a hint, there is FAR more than just doing it in Quickbooks. Here is another hint, it isn't as simple as Quickbooks broadcasting to the Internet "Could someone please send Joe Smith his $xxxx.xx, and I promise to pay you back". Please check back when you get a clue.
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So what you are telling the world is that you don't actually understand what it takes to actually get people paid. Here is a hint, there is FAR more than just doing it in Quickbooks. Here is another hint, it isn't as simple as Quickbooks broadcasting to the Internet "Could someone please send Joe Smith his $xxxx.xx, and I promise to pay you back". Please check back when you get a clue.
You're right, payroll is a little more complicated that the OP tried to make it out to be.
But it's not THAT difficult. There really is no reason for anyone to be outsourcing their payroll to someone else.
Comment removed (Score:4, Informative)
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It can be relatively difficult, every time you have someone work in a different state, you have a different set of local, county, state and federal taxes, regulations and deductions. Not deducting the right ones could leave you in loads of trouble. If someone goes out of state to visit a client or goes on vacation and they perform work there, technically they have to file taxes in that locality. A single company could be filing taxes in dozens of states, filing hundreds of city and county taxes and the rule
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The Quickbooks (Intuit) service IS a "payroll service". They all do the same thing--handle the myriad byzantine regulations imposed by the various state and federal entities that collect payroll taxes. Once you have even a single employee you NEED a payroll service, unless you want to spend your entire workweek dealing with tax forms and remittals to half-a-dozen different agencies. And that's before your employee gets divorced and suddenly you-the-business-owner receive child-support withholding orders and
What part of "My" did you not understand. (Score:3)
Well he did call the company My-Payroll.
Right up there with "to serve man" in honest advertising.
Jail time... (Score:2)
He needs prison, real prison, for a long time.
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Well put; and, a nice point of contention from the AC contingent.
The bail bonds system is intimately linked to law enforcement, attorneys, and the whole of the courts in which defendants are arraigned and tried.
Like the lawsuit industry, it's a very lucrative trade. Many lawyers are able to bond defendants out of jail. A preponderance of judges used to be lawyers, as well as many state and federal legislators.
FFS "My* Payroll (Score:4, Funny)
TFS says "MyPayroll"
TFA says "MyPayroll"
But TFH says "MayPayroll".
This is getting as bad as the grammatical and spelling mistakes of a Trump tweet.
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The running gag is that the "editors" have been a complete fucking joke since /. has been around.
(I use the word "editors" loosely due to how shitty they are.)
Re:FFS "My* Payroll (Score:4, Interesting)
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That's how you know it's not Bots writing the headlines!
Dam I wish I had mod points!
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It's just truth in advertising. They may pay you. They may not.
Did workers get paid? (Score:2)
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You seem to have missed the prior article about this situation. It was definitely "Or not" in a lot of cases.
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Not only did they not get paid on time, they were victimized as well by having their last paycheck yanked back out (even if it left them overdrawn). I would like to know when that crime will be investigated.
Earned?!? (Score:4, Insightful)
On Monday, [Mann] allegedly confessed that the diversion was the last desperate gasp of a financial shell game that earned him $70 million over several years,
I wish they would stop using the word "earned" in situations like this. Earned implies that real, honest, legitimate work went into it, and it plainly didn't.
As advertised (Score:2)
Still rich. (Score:2)
He may spend a couple of years in jail. He'll come out with a few million left after the trials and fines. He'll still have plenty of cash to do nothing the rest of his life and enjoy it.
--
He who makes $25,000 annually through passive income is more enviable than he who earns $100,000 annually through a salary. - Mokokoma Mokhonoana
Usually for this kind of crime (Score:2)
Unless he's well connected he's gonna do hard time, which with how horrible our prisons are probably isn't worth it. On the other hand if he is well connected (and given how long he got away with the scam might be) then yeah, he'll be A-OK.