FBI Investigates After Millions in Workers’ Direct-Deposit Pay Vanishes

The FBI and the New York State Department of Labor are investigating allegations that a payroll company diverted millions of dollars in employee pay to its own bank account, officials said Thursday.

NBC News reported that an FBI spokesperson confirmed the investigation after the bureau’s Albany, New York, office tweeted that it was “seeking information from business owners who may have suffered financial loss due to the alleged activity of MyPayrollHR and its affiliates.”

A spokesperson for the U.S. Department of Labor said New York state labor officials are also investigating.

MyPayrollHR, based in Clifton Park, New York, apparently ceased operations last week after direct-deposit company Cachet Financial Services claimed it diverted as much as $26 million in small-business employee paychecks to one of its bank accounts. Cachet handles direct deposit transactions for numerous payroll firms