Pocketing cash Angry andoverdrawn employees who had been receiving direct deposits. as wellas their employers, were left in the lurch after apparentmalfeasance by the payroll company's CEO.

Cloud-based payroll company MyPayrollHR,based in upstate New York, has vanished with nearly $35 million inpayroll funds from its customer firms, leaving thousands ofemployees not only stiffed for their pay but also for additionalfunds that also disappeared from their accounts—including moneythat wasn't even in their accounts in the first place.

Angry and overdrawn employees who had been receiving directdeposits from the firm, a subsidiary of ValueWise Corp. as well astheir employers, were left in the lurch after apparent malfeasanceby the payroll company's CEO Michael T. Mann. KrebsOnSecurityreports that not only did payroll fundsdisappear, but also money that belonged to some of the employeesaffected.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.