ANGOLA, IN (WTVB) – The co-owners of the now-defunct payroll processing company PayServ Systems LLC, located in Angola, , have been ordered to repay millions of dollars to resolve cascading civil litigation stemming from a massive corporate collapse.
Following a late-July court finding that founders Todd and Traci Saylor incurred joint and individual liability for missing client funds, the couple agreed to repay multiple defrauded businesses, including a direct agreement to return nearly $2.25 million to their largest former client, Midwest sporting goods retailer Dunham’s Athleisure Corp.
The civil settlements follow allegations that the Saylors pooled client tax and payroll money to prop up their separate business ventures and fund personal distributions, leading to an overall financial shortfall that topped $7.8 million.
The financial unraveling also triggered federal criminal consequences for PayServ’s former Chief Financial Officer, Heather Anne David.
David accepted a plea bargain in U.S. District Court, pleading guilty to seven felony counts of wire fraud for running an unauthorized “check-kiting” scheme and diverting nearly $900,000 via company credit cards and checks.
While the Saylors continue to navigate the wind-down of their consolidated civil suits—including an additional agreement to pay $515,000 to AZO Services—the court has scheduled a critical status hearing for September 15, 2026, to monitor the redistribution of the remaining millions.
As for now the Saylor’s have avoided being charged criminally in the case.
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