We need to know...How bad is this?

To start off with on Friday my husband's check did not get deposited in the bank. We were first told that this happened to some drivers and they had to overnight hard copy checks. Saturday we were told this happened to all the company drivers and that they would check into using comdata in the future to insure paychecks were deposited in the accounts. Then we heard today that the company responsible for doing the depositing, not my husband's employer, was filing for bankruptcy and that none of the companies they do this for got their payroll checks deposited.

He called me a little while ago and had me google the name Edward Okun(he owns the trucking outfit my husband works for) and bankruptcy. I found this:

A U.S. bankruptcy judge in New York has appointed a trustee to sort out the finances of the 1031 Tax Group after a $300 million loan failed to come through for the bankrupt company.

1031 Tax Group, based in Richmond, Va., filed for Chapter 11 in May, after authorities say founder Edward Okun allegedly stole about $151 million from 300 clients' property sales nationwide. Dozens of Bay Area investors are out millions of dollars after they entrusted their money to one of the company's affiliates, San Jose-based 1031 Advance.

That company was one of five qualified intermediaries that Okun bought during the past two years and placed under the umbrella firm 1031 Tax Group. Qualified intermediaries hold proceeds from property sales for a fee under section 1031 of the U.S. tax code. To avoid paying capital gains taxes, investors must sell a property and buy a similar one within 180 days.

snip:
Lukenda said Okun is still under investigation by the U.S. Attorney's Office and the U.S. Postal Inspector.

http://www.mercurynews.com/ci_7275529?source=most_emailed

Another article I found stated that Okun owns four homes, four Gulf Stream airplanes, seven boats and twenty cars.

:scared: We don't know whether to believe them when we're told his job is safe and that paychecks will keep coming.

It seems like employees get screwed more than the crooks they work for these days so I recommend playing it safe and start the job search now.

And of course today being a holiday doesn't help. See if you get a check tomorrow and if not, contact your state wage people.

told. Could your husband look for another job just in case things hit the skids so he'll be ready to go? Also, he should look into unemployment and be ready to move on that if the plug gets pulled suddenly.

My heart goes out to you. This is America and it's criminal and heartbreaking this could occur. I've no doubt your husband's company and this industry aren't the only ones being faced with this right now.

Who's representing the employees? Are they teamsters? This would be a good day to have a union.

by companies that contract to do payroll. The companies took the money to cover payroll from the businesses using their services, then from time to time, they delay/mess up paychecks. leaving workers in the lurch and their bosses having to come up with payroll AGAIN to get worker paid promptly.

Thinking the payroll companies are running on margins, and using Peter's money to pay Paul's employees from time to time, no unlike building contractors who take my money for my project and use it to finish up the project for Mrs. Jones up the street....

Things are NOT going well. Many businesses are operating on a wing and a prayer, juggling funds and barely (but not always) staying one step away from total fraud.

... a trustee appointed by the bankruptcy court. Employees are paid as long as they work under the operation by the trustee, but it's likely that the trustee will pare the workforce as a part of the reorganization. Since there seems to also be a criminal complaint against the owner, the trustee will probably file a civil suit against the owner on behalf of the company to obtain marketable assets as compensation for damages.

Amounts owing PRIOR to the filing of Chapter 11 are subject to forfeiture or partial payment, whether the creditors are suppliers or employees.

so they have laid off some drivers already. I guess over the next week or two he'll be keeping an eye out for another job...just in case.

Thanks:)

or lawyer look into the finances. Maybe your fellow employees could get together on the fees--at least see about a consult with a lawyer if nothing else. If they smell fraud, they'll be willing to give a bit to help you out sometimes.

Hate to be so pessimistic, but without elaborating, I know from where I speak. Our guy stopped paying rent on the building, the group health insurance premiums, but kept paying salary as long as he could. Three families ended up in bankruptcy from the health insurance default (2 babies, one heart problem).

Last anyone heard from him was his 'son' set up a shell company in the Bahamas.

Good luck, keep us posted if you can.

First of all, try to get verification from the appointed trustee to what really has happened.
If the statement above is correct, it is quite bad.
Your husband should consider getting another job just in case his current employer folds.

this one doesn't sound too secure.