Jacksonville Brothers Sentenced for Tax and Insurance Fraud

News Summary

Two brothers from Jacksonville have been sentenced for their involvement in a multi-million dollar tax and insurance fraud scheme. Travis Slaughter received a 41-month prison sentence while Tripp Slaughter was sentenced to 21 months. Their businesses exploited a ‘split check’ scheme to evade reporting $23 million in wages, resulting in significant unpaid taxes. The case highlights the impact of fraudulent practices on fair competition in the construction industry.

Jacksonville Brothers Face Serious Jail Time for Tax and Insurance Fraud

In a recent turn of events that has caught the attention of many, two brothers from Jacksonville have been sentenced for their role in a multi-million dollar tax and insurance fraud scheme. Travis Slaughter, aged 53, has been handed a hefty 41-month sentence in federal prison, while his younger brother, Tripp Slaughter, 50, received a 21-month sentence. The sentencing comes after the brothers pleaded guilty to serious charges of conspiracy to commit mail and wire fraud and conspiracy to commit tax fraud in November 2024.

The Slaughters’ Business Ventures

The Slaughter brothers weren’t just ordinary citizens; they operated multiple roofing businesses, including Great White Construction, Florida Roofing Experts, and 5 Star Roofing Services. While on the surface these companies may seem legitimate, federal investigators uncovered a disturbing “split check” scheme designed to cheat both the payroll tax system and workers’ compensation insurance premiums.

The Heart of the Fraud

From October 2015 to June 2020, the pair managed to avoid reporting a staggering $23 million in wages to the IRS. This led to an eye-popping $4.2 million in unpaid payroll taxes. Even worse, their fraudulent practices allowed them to dodge more than $2.7 million in workers’ compensation insurance premiums. For those who don’t fully grasp the ramifications, this meant that the Slaughters not only stole from the tax system but also created an unfair competitive advantage over other roofing companies.

Personal Income Underreporting

The fraudulent behavior wasn’t limited to just their businesses. Travis Slaughter also underreported his personal income, racking up a tax debt of over $2.4 million between 2014 and 2019. Meanwhile, Tripp Slaughter wasn’t exactly on the up-and-up either, as he ended up underreporting his income as well, leading to a tax bill of over $260,000 from 2015 to 2019. These shocking amounts illustrate just how far the brothers went in their attempts to skirt the law.

Restitution and Asset Forfeiture

The sentences come with substantial financial repercussions. Travis Slaughter has been ordered to pay more than $9.8 million in restitution and forfeit nearly $2.8 million. His brother Tripp Slaughter faces a restitution payment of over $1.1 million and has to forfeit more than $416,000 as part of his penalty. These restitution figures underscore the financial damage their illegal activities inflicted not just on the authorities, but also on honest businesses operating in the same industry.

Long-Lasting Impact

This fraudulent scheme didn’t just affect the brothers; it exploited hundreds of undocumented workers while bilking insurance companies. Authorities noted that their deceptive practices, which reportedly began back in 2007 and continued until 2020, posed a significant threat to fair competition in the construction sector. It has become clear that their actions have created a ripple effect, impacting many legitimate competitors trying to bid for jobs.

Conclusion

Investigated by multiple agencies, including the IRS Criminal Investigation and Homeland Security Investigations, the case was a major blow for those seeking justice in the ongoing battle against fraud. The Slaughters initially faced the possibility of up to 25 years in prison but ultimately accepted plea agreements, resulting in their current, yet still significant, sentences. As this case wraps up, it serves as a stark reminder that crime doesn’t pay, and those who try to cheat the system may end up facing the music in ways far grander than they ever anticipated.

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Additional Resources

• News4Jax: Jacksonville Roofing Business Operators Sentenced
• Jacksonville.com: Roofer Brothers Get Prison for Payroll Scam
• Hoodline: Jacksonville Roofing Business Operators Sentenced
• Encyclopedia Britannica: Tax Fraud
• First Coast News: Men Tied to Jacksonville Roofing Companies Pleaded Guilty