Going deep on the MyPayrollHR fraud with Wendy Slavkin of Cachet Financial Services

Sep 19, 2019

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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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