Payroll company folds leaving hundreds of local employees without paychecks


22NEWS AT 10. I’M CIARA SPELLER. DON: I’M DON SHIPMAN. DON: EMPLOYEES AT A WESTERN MASSACHUSETTS COMPANY WANT ANSWERS AND THEIR MONEY BACK. THEY GOT PAID LAST WEEK – BUT WITHIN DAYS THEIR MONEY WAS ABRUBTLY WITHDRAWN FROM THEIR BANK ACCOUNTS. CIARA: AND TONIGHT WE’RE LEARNING THE PAYROLL VENDER THAT COMPANY WAS USING – ALSO UNEXPECTEDLY SHUTDOWN. CIARA: 22NEWS REPORTER HAYLEY CROMBLEHOLME JOINS US LIVE… WITH A LOOK AT HOW COMPANIES ARE WORKING TO GET THEIR MONEY BACK. HAYLEY: THE FRAUDULENT ACTIVITY IMPACTED HUNDREDS OF EMPLOYEES WITH UNITED PERSONNEL HERE IN SPRINGFIELD, BUT IT’S IMPACTED PEOPLE ACROSS THE COUNTRY, AND THE FBI IS GETTING INVOLVED. “HUNDREDS OF DOLLARS GONE, WITH NO EXPLANATION” HUNDREDS OF EMPLOYEES AT UNITED PERSONNEL IN SPRINGFIELD LOGGED INTO THEIR BANK ACCOUNTS OVER THE LAST SEVERAL DAYS, SEEING THEIR DIRECT DEPOSITS HAD BEEN WITHDRAWN. THE COMPANY SAID IT WAS THE RESULT OF ALLEGED “FRAUDULENT ACTIVITY” AT ITS PAYROLL VENDOR – WHICH USED BY COMPANIES ACROSS THE COUNTRY. “THIS IS PART OF TENS OF THOUSANDS OF PEOPLE NATIONALLY. THIS IS A PAYROLL COMPANY, MYPAYROLLHR THAT DID BUSINESS AROUND THE UNITED STATES. THERE ARE HUNDREDS OF COMPANIES THAT WERE WORKING WITH THEM AND UTILIZING THEM” MYPAYROLLHR IS BASED OUT OF CLIFTON PARK, NEW YORK, AND GOVERNOR ANDREW CUOMO SAID SINCE THE INCIDENT, THE COMPANY MADE A “SUDDEN AND UNEXPLAINED SHUTDOWN” – NOW COMPANIES INCLUDING UNITED PERSONNEL ARE HAVING TO FIND OTHER WAYS TO PAY THEIR EMPLOYEES. THE BETTER BUSINESS BUREAU SAID THEY RECEIVED A SPIKE IN CONSUMER COMPLAINTS ABOUT MYPAYROLLHR, AND SAID CONSUMERS RECEIVED A MESSAGE FROM THE BUSINESS SAYING IN PART, “DUE TO UNFORESEEN CIRCUMSTANCES, WE ARE NO LONGER ABLE TO PROCESS ANY FURTHER PAYROLL TRANSACTIONS.” FOR THE TIME BEING, EMPLOYEES AT UNITED PERSONNEL ARE PICKING UP PAPER CHECKS IN PERSON. “NOT ONLY ONE PAYMENT CAME OUT, BUT A SECOND ADDITONAL PAYMENT CAME OUT AS WELL, AND I’M LIKE OKAY, WHAT IS GOING TO HAPPEN HERE? AND THEY DON’T JUST HAVE ACCESS TO MY CHECK FROM HERE, THEY HAVE ACCESS TO MY WHOLE ACCOUNT. I HAVE DIRECT DEPOSITS THAT COME OUT FOR BILLS, AND I WAS JUST SCREWED” UNITED PERSONNEL SAID EMPLOYEES HAVE TO WORK WITH THEIR BANK TO TRY AND RECOVER THOSE FUNDS, AND SHE SAID MOST EMPLOYEES ARE REPORTING BACK THAT BANKS HAVE REFUNDED THEIR MONEY. REPORTER: CANAVAN SAID THE FBI, STATE ATTORNEY GENERAL, THE US ATTORNEY GENERAL, AND THE FDIC ARE ALL INVESTIGATING. IN SPRINGFIELD HAYLEY CROMBLEHOLME

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