More online To read the civil case complaint filing about this lawsuit, visit kpcnews.com.
ANGOLA — A lawsuit now in Steuben Superior Court is seeking more than $6 million in damages from the Angola-based payroll processing firm PayServ and its principal owners.
The suit filed Jan. 21 alleges that PayServ, through its owners Todd and Traci Saylor and principal manager Heather David, defrauded sporting goods chain Dunham Athleisure Corp. out of approximately $2.25 million.
The lawsuit, originally filed in Steuben Circuit Court then transferred to Steuben Superior Court because Circuit Court Judge Jeremy Musser recused himself from the case, is seeking triple damages.
“Dunham’s is entitled to treble damages of not less than $6,735,895.68 million and all costs and attorneys’ fees,” the suit says.
“PayServ LLC denies the allegations asserted in the Dunham’s Athleisure Corporation lawsuit,” PayServ wrote in a statement emailed to KPC Media last week. “PayServ LLC will vigorously contest the allegations set forth in the suit.”
In addition, the suit seeks to prevent the Saylors from selling off any of their assets, including numerous businesses and a Florida home reportedly valued at $5.9 million.
The suit alleges that the Saylors and David at their direction used PayServ client money — and specifically that of Dunham’s — to cover the expenses of their numerous businesses. They allegedly were using funds from Dunham’s to cover the payroll and taxes of other clients. Money from their various clients were comingled, the suit says.
In December, the suit alleges, PayServ sought more than $6 million from Dunham’s to cover its payroll and taxes but the money was instead being used to cover shortfalls in its funds.
“But the $2.25 million shortfall in PayServ’s funds — which funds were entrusted to it by Dunham’s and other businesses — was due to fraud and conversion by Heather David at the direction of Todd Saylor and Traci Saylor. The Saylors directed Ms. David to divert clients’ money to the Saylors’ other businesses. Then, in December 2024, the Saylors directed Ms. David to use Dunham’s money to pay other companies’ payroll to cover up the shortfall caused by their fraud,” the suit alleges. (Emphasis added by Dunham’s attorneys.)
PayServ then sought money from Dunham’s in order to cover their other clients.
“When PayServ — upon the Saylors’ and Ms. David’s direction — emailed Dunham’s on December 10, 2024, directing Dunham’s to wire it $6,625,509.35, the Defendants intended to use Dunham’s money to bankroll payroll tax obligations for other clients, leaving Dunham’s with the tax obligation shortfall,” the suit alleges. “In other words, when the Defendants accepted Dunham’s money on December 12 and 13, Defendants knew that they would not make any tax payments on behalf of Dunham’s. Defendants took Dunham’s money and immediately diverted it.”
“Todd Saylor became aware of fraudulent activity by a former employee. As a result, a thorough review and investigation was immediately commenced and is ongoing,” attorney James McEntarfer’s statement read. “The former employee’s actions were reported to law enforcement authorities. PayServ LLC is fully cooperating in the law enforcement investigation of the former employee.”
No criminal charges have been filed against the Saylors or David in Steuben County. Law enforcement sources have not been able to confirm whether there is an active investigation.
The suit, which seeks an injunction against the Saylor’s selling of any of their property or businesses, claims that Todd Saylor had been in conversation with Dunham’s officials about the shortfall.
“Mr. Saylor readily admitted it on several conference calls and provided spreadsheets detailing the amount Defendants took from Dunham’s. And Mr. Saylor even admitted that that he ‘knows’ he ‘is going to jail,’” the suit says.
The suit alleges PayServ, the Saylors and David committed theft, fraud, breach of contract and conversion and sought damages through the Indiana Crime Victim’s Relief Act. The suit only seeks damages from the Saylors and not from David. The suit indicated David was terminated in November or December.
The suit asks the court to direct the Saylors to put the proceeds of any sales of their properties into an escrow account to help repay Dunham’s. It also seeks an injunction to prevent the sale of their property and business assets because Todd Saylor allegedly indicated to representatives of Dunham’s that he was not going to make good on his debt.
The court filing alleges that PayServ notified its clients on Dec. 18, 2024, that it was “winding up” its business.
Todd Saylor is a 1983 graduate of Angola High School and a graduate of Manchester University, where he played football. He is an entrepreneur who has built many businesses and has written three autobiographies using the brand, “Wired Differently.”
In recent years, he has purchased the landmark Tom’s Donuts started by his father, Tom Saylor, a former high school football coach. He owns the businesses and property at three of the four corners at the “downtown” area of Lake James, the Four Corners, the intersection of C.R. 300W and Bay View Road.
During an event in 2022, he declared the original Tom’s, at the lake, “The Donut Capital of the World,” through a proclamation of then-Angola Mayor Dick Hickman.
Over the summer, Saylor held numerous events each weekend at the property at the northeast corner of the intersection. He has put on fireworks shows at the lake that some say eclipsed the quality of the annual July 4 fireworks at Lake James.
At the lake, Saylor operates a food truck on the northeast corner and on Saturday nights has held events like motorcycle “burnouts for Jesus;” Lake Life Traditions restaurant on the southeast corner; and the flagship Tom’s Donuts on the southwest corner.
Saylor has been involved in many philanthropic efforts in the community. He worked to raise money for Cameron Memorial Community Hospital, has supported local athletics and recently built a podcast booth that’s available for use at Co-Work Steuben in Angola.
KPC Media has reached out to the two attorneys of record for the Saylors and PayServ for comment. Only the comments printed above in their entirety were provided.
More online To read the civil case complaint filing about this lawsuit, visit kpcnews.com.
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