A pair of businessmen from Charlotte, North Carolina, have been sentenced in federal court for failing to account for and pay over more than $150,000 in trust fund taxes to the Internal Revenue Service (IRS) over five quarters in 2016 and 2017. This announcement was made by Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina.
Donald “Trey” Eakins, Special Agent in Charge of the IRS Criminal Investigation (IRS-CI) Charlotte Field Office, joined Acting U.S. Attorney Cameron in making today's announcement.
Richard Brasser, aged 58, and Gregory Gentner, aged 54, received sentences of 12 months and one day in prison respectively. Both will also serve a one-year term of supervised release following their prison terms. In March 2024, a federal jury found both Brasser and Gentner guilty on multiple counts related to failing to account for and pay over trust fund taxes.
The court hearing revealed that rFactr, a company based in Charlotte that sold software leveraging social media for sales platforms, was involved. Brasser served as rFactr’s Chief Executive Officer while Gentner held the position of Chief Operating Officer. Evidence presented at trial showed that between 2015 and 2017, they caused rFactr to collect more than $600,000 in trust fund taxes from employee wages but failed to file Forms 941 with the IRS or pay the withheld taxes promptly.
Trial evidence further indicated a history of noncompliance by Brasser and Gentner with employment tax obligations at rFactr from 2013 to 2017. During this period, they did not timely file employment tax returns or remit owed employment taxes to the IRS. Consequently, between 2015 and 2017 alone, they caused rFactr to owe over $1.1 million in employment taxes.
In his statement regarding today’s sentencing, Acting U.S. Attorney Cameron commended IRS-Criminal Investigation for their role in investigating the case.
The prosecution was handled by Assistant U.S. Attorney Caryn Finley and Special Assistant U.S. Attorney Eric Frick from the U.S. Attorney’s Office in Charlotte.
