CHARLOTTE, N.C. — In a press release on Thursday, the United States Attorney's Office announced that a Charlotte federal grand jury indicted two Charlotte businessmen with not reporting or paying over $600,000 in trust fund taxes owed to the Internal Revenue Service (IRS)
Dena J. King, U.S. Attorney for the Western District of North Carolina, announced the indictment, charging rFACTr Chief Executive Officer, Richard Brasser, and Chief Operating Officer, Gregory Gentner, with multiple counts of filing false tax returns and failing to pay trust fund taxes over several years.
According to the indictment, Brasser and Gentner allegedly caused rFactr, a social communication software company with offices in Charlotte, to collect over $600,000 in trust fund taxes from employee wages. According to the indictment, these taxes were never reported, or paid, to the IRS.
The indictment also alleges that Brasser and Gentner were historically non-compliant with rFactr's tax obligations, failing to file tax returns and pay employment taxes in a timely manner over the course of several years. These actions allegedly resulted in rFactr owing the IRS over $1.1 million in employment taxes.
Brasser allegedly evaded paying the trust fund recovery penalty (TFRP) but using nominee accounts and names to pay for personal expenses, rather than using his real name. These purchases include private school tuition, country club fees and luxury furniture, as outlined in the indictment.
It is important to note that the defendants are presumed innocent until proven guilty and this indictment is only an allegation that resulted in charges being brought.
In a statement to WCNC Charlotte, Brasser despite the findings.
"This statement is factually incorrect. The taxes and required forms were reported via the Voluntary Disclosure Process in 2016," he wrote. "The company was accepted into that program which is designed to encourage businesses with tax liabilities to become compliant by bringing the tax liabilities to the attention of the IRS before any collection activity has commenced. That was the case in this situation."
"In addition, the Trust Fund Taxes were paid in full including penalties and interest," he added.