A former Dauphin County business owner has been sent to state prison for stealing nearly $6 million from hundreds of business and nonprofit clients over a five-year span.
Attorney General Josh Shapiro announced Wednesday that 45-year-old William Sullivan Jr., the owner of former payroll company Net Pay Solutions, was sentenced on felony theft charges to 15 to 30 months in prison, followed by 54 months of probation.
Sullivan pleaded guilty to theft by failure to make required disposition of funds, a first-degree felony. He stole more than $5.7 million from clients between 2006 and 2011. Investigators said 266 clients, many of them small businesses and nonprofits, were affected by Sullivan’s actions.
As part of his guilty plea, he also was ordered to pay nearly $4 million in restitution to victims. The state sentence will run concurrent to a federal sentence Sullivan received earlier this month for similar crimes in western Pennsylvania.
Net Pay Solutions, which filed for bankruptcy in 2011 and is no longer in business, had clients across Pennsylvania, as well as in Maryland and New Jersey.
Sullivan, the firm’s chief executive, took funds allocated to pay his clients’ taxes and unemployment compensation claims and used them to pay his company’s operating expenses and financial obligations. He also used client funds to cover personal spending on vehicles, travel and home renovations, investigators said when he was arrested in 2016.
As he picked up new clients, Sullivan used their money to pay unpaid tax liabilities for existing clients, investigators said.
“Sullivan badly hurt Pennsylvania businesses by not paying their federal, state and local tax returns for five years – as he promised to do under agreement for his clients,” Shapiro said. “These were small businesses and nonprofits – some of which were forced to close their doors because of his repeated thefts. He violated their trust and stole their money. His guilty plea and sentencing today will ensure justice is served.”