Going deep on the MyPayrollHR fraud with Wendy Slavkin of Cachet Financial Services
SPECIAL BREAKING NEWS EPISODE: Wendy Slavkin, General Counsel for Cachet Financial Services, joins Blake and David to discuss the MyPayrollHR fraud story. Wendy, who possibly is the last person to have spoken with MyPayrollHR CEO Michael Mann before he and $35 million went missing, gives us the entire story of what happened, when it happened, and how it happened.
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Show Notes
- 01:41 – General Counsel Slavkin describes Cachet Financial Services as a sort of third-party vendor for payroll processing companies.
- 05:59 – Every ACH provider has their own patented process for payroll
- 06:45 – How MyPayrollHR’s owner, Michael Mann, did the deed, in technical detail
- 09:03 – Slavkin claims the assorted employee banks are to blame for the whole payment reversal fiasco
- 10:32 – According to Slavkin, banks have 60 days to either accept or reject reversal files
- 11:29 – Cachet eventually decided to return all funds to the affected employees, using their own funds
- 12:10 – Though Cachet covered the payroll, some employees have yet to receive their funds back
- 13:32 – Slavkin notes that employee banks are waiving overdraft and other fees related to this incident
- 14:18 – NACHA’s statement re payroll-deposit reversals | Personnel Today
- 14:38 – Slavkin doesn't agree with NACHA's claim about reversing payroll deposits.
- 16:21 – Lesson learned: ABC - Always Be Cautious ... Before the MyPayrollHR event, Cachet never had controls in place to detect fraudulent activity from the client side. Now, after the fact, they do.
- 18:56 – According to Slavkin, Pioneer Bank is holding at least some of their money "in trust" ... They just have to find a way to get it.
- 23:18 – Timeline of the aftermath – from discovery through contacting FBI and more
- 24:38 – Wall Street Journal reports that Mann is cooperating with the U.S. Attorney and FBI ... | The Wall Street Journal
- 25:02 – Where in the world is Michael Mann? Either nobody knows, or they're not saying
- 26:30 – Blood and turnips - Slavkin was unable to accomplish much of anything when she contacted the FBI for help
- 31:50 – Pioneer Bank – another victim? | Times Union
- 33:30 – Was this a crime of desperation, or a crime of greed?
Connect with Cachet Financial Services
- The Cachet Crisis Hotline number is 877-579-8557
Connect with Our Guest, Wendy Slavkin, General Counsel for Cachet Financial Services
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