St. Louis Public Radio News
9:37 am
Fri August 8, 2003

Gateway Blood Employees See Paychecks Disappear

St. Louis, MO – About 50 employees of the Gateway Blood Association whose paychecks were directly deposited into bank accounts have since seen the money disappear.

The blood bank closed last week because of financial problems. Employees say they never realized the money could be directly withdrawn once it was deposited.

There is no law in Missouri against banks taking money out of accounts within five business days.

Gateway's acting CEO, Dr. William Miller, said the company is liquidating everything to pay off about $3 million dollars in debt.

He says he's saddened, but the business needs to pay off creditors and vendors. He says there won't be enough money to make another deposit into employees' accounts.