Indicted former PaySource owner has 1995 embezzlement conviction

DAYTON — Robert R. Sacco, the former PaySource owner accused of bilking the IRS of $26.7 million, pleaded guilty in 1995 to a federal embezzlement charge.

Sacco told the Dayton Daily News in 2003 that he moved to the Dayton area in 1995. Federal court records in Albany, N.Y., show Sacco pleaded guilty to the embezzlement charge in December of that year.

Sacco, now 59, was placed on probation for three years and ordered to pay restitution to The New York State Nurses Association and its insurance company.

The plea agreement states that he embezzled nearly $61,000.

Efforts to reach the association, which is a labor union, were unsuccessful. Sacco declined comment Wednesday.

Sacco, who lived in Huber Heights after moving to the area, now lives in Orlando, where he was arrested Monday, according to the U.S. Attorney’s Office for the Southern District of Ohio.

He faces 67 federal charges in the latest indictment. He was released on $50,000 bond on Tuesday.

Dayton-based PaySource, which had offices on Poe Avenue and employed 40 people, was a co-employment company — meaning that it hires a client company’s employees, thus becoming their employer of record for tax and insurance purposes.

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