A pair of businessmen from Charlotte were 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) during five quarters in 2016 and 2017. This was announced 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 the announcement.
Richard Brasser, aged 58, and Gregory Gentner, aged 54, received sentences of 12 months and one day in prison respectively. They will also serve a one-year term of supervised release following their imprisonment. In March 2024, a federal jury found both men guilty on multiple counts related to their failure to account for and pay over trust fund taxes.
During the sentencing hearing and based on evidence presented at trial as well as other court documents, it was revealed that rFactr—a company with offices in Charlotte—sold software leveraging social media for sales platforms. Brasser served as rFactr’s Chief Executive Officer while Gentner was the Chief Operating Officer. Evidence showed that between 2015 and 2017, they caused rFactr to collect over $600,000 in trust fund taxes from employee wages but failed to file Forms 941 with the IRS or pay these withheld taxes promptly.
The trial evidence further indicated a history of noncompliance with employment tax obligations by Brasser and Gentner at rFactr from 2013 through 2017. Specifically, they failed to timely file employment tax returns or remit owed employment taxes to the IRS. Between 2015 and 2017 alone, they caused rFactr to owe more than $1.1 million in employment taxes.
Acting U.S. Attorney Cameron praised IRS-Criminal Investigation for their work on this case.
The prosecution was handled by Assistant U.S. Attorney Caryn Finley along with Special Assistant U.S. Attorney Eric Frick from the U.S. Attorney’s Office in Charlotte.