The former CEO of Latitude 360 has pleaded guilty to failing to pay payroll taxes withheld from employees’ paychecks.
Brent Brown, 55, formerly of Jacksonville, faces a maximum penalty of five years in federal prison.
As part of his plea, Brown agreed to pay $3,832,360.48 in restitution to the IRS for unpaid payroll taxes, including both taxes withheld from employees and taxes that the company should have paid.
A sentencing date has not yet been set.
According to the plea agreement, Brown was the Chief Executive Officer of Latitude 360, Inc., and the manager of its subsidiaries, including Latitude 360 Jacksonville.
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Brown exercised oversight over every aspect of the company’s business affairs, including payments of wages to the company’s employees and disposition of funds in the company’s bank accounts, and he had the corporate responsibility to collect, truthfully account for, and pay over the company’s payroll taxes.
Latitude 360 withheld taxes from employee wages, including federal income taxes and Federal Insurance Contributions Act, or “FICA” taxes, which were required to be remitted to the Internal Revenue Service periodically.
On behalf of the company, Brown filed quarterly tax returns that accurately reflected the payroll taxes due, but he caused the company to fail to pay over the payroll taxes to the IRS.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Arnold B. Corsmeier and Laura Cofer Taylor.
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