Paysource owner accused of defrauding government of $26.7 million

[rucky]

Source: Dayton Daily News

DAYTON — The owner and chairman of Paysource has been indicted on 67 federal counts, including charges that he defrauded the Internal Revenue Service of $26.7 million.

Robert R. Sacco, 59, formerly lived in Huber Heights and now lives in Orlando. IRS and customs agents arrested him Monday, Nov. 1, at Orlando International Airport as he returned from a vacation in Costa Rica. His initial appearance, in the U.S. District Court in Orlando, could be later Tuesday.

A federal grand jury indicted Sacco on Oct. 26, but the indictment remained under seal until this week. Sacco is charged with: — one count of conspiracy to defraud the United States by impeding the IRS — one count of conspiracy to commit mail fraud, wire fraud and money laundering — ten counts of wire fraud — 39 counts of money laundering — 16 counts of tax evasion

According to the indictment, Sacco defrauded the government by by withholding money to pay federal employment taxes from employees’ paychecks, then keeping the money.

Read more: http://www.daytondailynews.com/o/content/shared-gen/blogs/dayton/daytoncourts/entries/2010/11/02/dayton_the_owner_and.html

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HOOSEGOW!

[Blue_Tires]

1. odds that he's a big gummitt hating teabagger??

1-1

[MineralMan]

2. Wow! I've heard lots of ads from this company.

The really, really serious problem here is that the employees whose paychecks were handled by Paysource, will still be responsible for those taxes, and their employers may also get stuck with paying twice. The IRS doesn't take excuses when it comes time to collect income tax.

I have to tell my wife about this. I think she may have a review of this company in the works, and she'll want to know before writing it, I suspect.

[defendandprotect]

3. Recall a large restaurant in NJ that got caught holding back their

employees FICA and other taxes .... they went out of business.

I've had personal experience in someone who employed me trying to do

the same -- they have something like 45 days to pay FICA, I think?

This seems yet a bit more sophisticated, but unless we have strong rules and

regulations on capitalism, this stuff will happen!!

[Hestia]

4. Not 45 days to pay - it used to be within pay period if every 2 weeks. Been

awhile since I have had to deposit payroll taxes, but you used to have to deposit within 5 days of pay period. Am I remembering that correctly? Of course, though, I had to run deposit the money or the owner would spend it, thinking it was his play money.

[defendandprotect]

5. I think it used to be 45 to activate on a NEW employee .....

if they've tightened all of that up -- good.

Perhaps the recent scams helped do that --

but not sufficient to keep this company on the up and up!!

[avaistheone1]

6. Wow! That is a lot of moolah to holding back on.

Glad the cheating dude got caught.