(ANGOLA) - Former PayServ System Chief Financial Officer Heather Anne David has plead guilty to seven federal counts of wire fraud.
This is connected to the collapse of the Angola-based human resources management and payroll company.
U.S. District Court officials say David plead guilty on July 6. Prosecutors allege that she used company credit cards and checks to divert more than $900,000 from PayServ between 2016 and 2024. Court documents show that David admitted to seven fraudulent credit card charges in 2024 totaling more than $59,000.
Her plea comes as PayServ continues to face civil litigation from several former clients who allege they collectively lost millions of dollars after the company disclosed a major financial shortfall in December 2024.
David has agreed to pay $59,235 in restitution and an additional $118,470 in fines.
David surrendered her passport before being released August 4 before being released. A sentencing date has not been sent.
PayServ announced in December 2024 that they had lost nearly $8 million, causing several clients to file lawsuits.
Dunham's is alleging a loss of over $2.2 million. Other alleged losses include AZO Services Inc. of Kalamazoo ($615,371.56); Heartland Recreation Vehicles of Elkhart ($225,098.51); Cruiser RV in Howe ($156,151.54); The Riegseckers Inc. of Shipshewana ($126,427.56) and Blue Gate Musicals LLC in Shipshewana ($9,688.26).
PayServ was founded in Angola by Todd and Traci Saylor in 2003. The company provided payroll and human resources services, including management of payroll expenses and tax liabilities for its clients.
Attorneys representing plaintiffs in the civil lawsuit, however, have presented a different account of the company's financial problems. They allege the operation involved an elaborate check-kiting scheme designed to keep the company operating despite mounting financial obligations.
Private e-mails attributed to Saylor and dated November 25, 2024, indicate he was aware of serious financial problems more than three weeks before customers were notified of the collapse, according to court records.
Saylor has not been criminally charged in connection with the PayServ collapse.