Bel Air Accupay Facing Fraud Allegations

The Bel Air payroll processing company Accupay, accused of defrauding clients of thousands of dollars, remains under investigation and the company's owner appeared in federal bankruptcy court this week.

Bel Air Police launched an investigation into the business, located at 206 East Churchville Road, early last month after receiving numerous complaints from clients across the state about unpaid federal income tax withholdings.

Investigators received at least 10 complaints of fraud and the company is being sued by five additional clients alleging similar losses of $465,000, according to a release from Del. Mary-Dulaney James, who has been working with other state officials to ensure alleged victims are not further financially burdened.

The release goes on to say that Comptroller Peter Franchot's office will not pursue back taxes or penalties and will not press charges against small businesses "deceived or misled by AccuPay."

The business filed for Chapter 7 bankruptcy in the wake of the accusations, listing debts between $100,001 and $500,000, according to an article in the Baltimore Sun. Chapter 7 bankruptcy would allow the business to liquidate assets and pay of creditors, the article states.

This week, Accupay owner Beverly Carden appeared in federal court in Baltimore for a bankruptcy hearing, according to a story on WBAL.com.

"They would come up with excuses: 'There was a glitch in our computer system,' or, 'It's going to be taken care of, just give us time,'" client Tammy Miller of Elite Transport told WBAL. "Well, all that time they were asking us to give them, they were taking our money."

The U.S. Attorney's Office is now heading up the joint criminal investigation into Accupay, the WBAL.com story states.

Bel Air Police encourage companies who have conducted business with Accupay Services to contact the IRS to confirm their taxes were paid.