"possibly fraudulent" is about right.
Cutting these paychecks sounds more like just a gross error by the payroll office, someone just neglecting to enter the correct code on the computer, instead of fraud.
They kept the money didn't they? Sounds a lot like fraud to me.
I didn't get paid for almost 4 months in the Army.
Or more accurately, they paid me, but direct deposited my money in someone else's account.
It was a wonderful experience.