SPRINGFIELD, Mass. (WWLP) – Employees at a western Massachusetts company want answers and their money back.
They got paid last week but within days, their money was abruptly withdrawn from their bank accounts.
Turns out the payroll vendor that company was using unexpectedly folded.
The fraudulent activity impacted hundreds of employees with United Personnel in Springfield, but it’s impacted people across the country, and now the FBI is getting involved.
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in Springfield logged into their bank accounts over the last several days, seeing their direct deposits had been withdrawn.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 is 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,” said Tricia Canavan from United Personnel.
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 additional 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,” said Fachon Gordon of Springfield.
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.
Canavan said the FBI, state attorney general, the U.S. attorney general, and the FDIC are all investigating.