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Animal Charity victim in payroll company scam

YOUNGSTOWN, Ohio - Late last month the executive director of Animal Charity, Talia Musolino, found out that the organization's payroll service, Benjamin Franklin, went out of business and that its owner, Richard Zakarian, was in jail for pocketing funds that were supposed to be used for his client's tax payments.

"And (we) started, obviously, calling all of the correct agencies to see if our taxes had been filed and of course came to find out that none of ours had been either," Musolino said.

As a result, the agency has incurred a loss of just over $62,000.

Animal Charity and the Spitzer Corporation are among dozens of victims listed so far in an indictment against Zakarian, who is being held in the Lorain County jail on $100,000 bond.

Gary Pilcher, chairman of the Animal Charity board, says, "What I was told most recently by one of the investigators, this is now up to three million dollars and there are about 70 victims and counting as how he put it."

Animal Charity started using Ben Franklin Payroll in January of this year because it offered two years of free service to a charity. Prior to that, it had been paying $200 per month to another service.

Pilcher says Animal Charity checked the business' references, including the Integrity in Payroll Processing and the Better Business Bureau.

"It appeared to be a reputable company. Had been around for 20 years and so we contracted with them," Pilcher said.

Animal Charity has started to pay some of the penalties, but it has appealed to the IRS to waive the penalty and tax liability fees as well as interest.

"It has been quite a blow to us, definitely, but we want to keep working as usual and keep business going to continue offering the services that we have been," Musolino said.