FBI raids home of MyPayrollHR CEO as part of fraud investigation

The FBI has searched the New York home of a payroll processing company CEO suspected of fraud. The FBI is investigating whether New York state-based MyPayrollHR allegedly diverted an estimated $35 million from employee checks and accounts.

A law enforcement official confirmed to CBS News senior investigative producer Pat Milton that FBI agents searched the upstate New York home of MyPayrollHR boss Michael Mann on Monday as part of an ongoing federal investigation into the company. FBI agents arrived at Mann’s lakeside house in Edinburg, New York armed with a federal search warrant to search and collect potential evidence. 

The FBI is investigating the circumstances surrounding the abrupt shutdown of MyPayrollHR, which left more than 250,000 employees across the country without paychecks and as many as 5,000 business owners scrambling to pay employees. There were no arrests at Mann’s home on Monday, but the FBI is asking for more potential victims to come forward.

A business partner for the shuttered company, Cachet Financial Services, claims it is a victim of fraud by MyPayrollHR and that Mann or someone at the company manipulated account numbers and moved workers’ money into a personal account.