- Reuters/Jim Bourg
- The home of the head of MyPayrollHR, Michael Mann, was raided on Monday afternoon, an FBI representative confirmed to Business Insider.
- MyPayrollHR closed suddenly on September 5, leaving thousands of people around the country without their paychecks and spurring an FBI investigation.
- No arrests appear to have been made, and Mann hasn’t been seen since the company closed.
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FBI agents on Monday afternoon conducted a raid on the home of the head of MyPayrollHR, Michael Mann, in Edinburg, New York.
A representative for the FBI’s Albany bureau confirmed to Business Insider that agents were at Mann’s address on Monday in connection with an ongoing investigation, but declined to provide further details. The raid was first reported by the Daily Mail.
Mann is the CEO of ValueWise, the parent company of MyPayrollHR. The cloud-based payroll-and-HR service unexpectedly shuttered on September 5, leaving thousands of people without paychecks.
When MyPayrollHR closed, over 4,000 of its clients were abruptly notified that their payroll transactions couldn’t be processed “due to unforeseen circumstances,” according to the Albany Times Union. The company also abandoned its Albany office the same day.
With the shutdown of the company, up to $35 million went missing, according to the cybersecurity watchdog Brian Krebs. The FBI’s Albany bureau said last week that it was “investigating allegations of criminal conduct” related to the company and called on affected business owners to submit tips.
No arrests appear to have been made in connection with the FBI raid on Monday afternoon, according to the Daily Mail report. Agents reportedly arrived at the property around 4:30 p.m. and stayed for an hour. Mann and his wife, Kim, have laid low since the company’s closure, and no news organization has been able to obtain a photo of either in the past week.
As a result of MyPayrollHR’s sudden closure, thousands of people who used the service found that automatic direct deposits to their accounts had been withdrawn, leaving many with negative bank accounts, the Daily Mail reported.
Gov. Andrew Cuomo of New York has said he will ensure the company is held accountable.
“We will not allow these bad actors to take money away from the hard-working people in this state,” Cuomo said on September 6.
MyPayrollHR’s website appeared to be down as of Tuesday morning. A call to its Albany office led to a voicemail message saying that “all members of our sales team are unavailable.” A voicemail left by Business Insider requesting comment was not immediately returned.