Jacksonville Roofing Company Operators Plead Guilty to Fraud
Jacksonville, Fla. – Two individuals running a local roofing company have recently entered guilty pleas related to multiple fraud charges. Travis Slaughter and Tripp Slaughter, who operated their business under various names over the years, now face the possibility of spending up to 20 years in federal prison.
Fraud Charges
According to the Department of Justice, both men pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit tax fraud. These charges stem from their management of a roofing business that operated primarily in Jacksonville. The company was known under names like Great White Construction, Florida Roofing Experts, and 5 Star Roofing Services. Despite frequent name changes, the business practices remained largely consistent.
Financial Restitution and Forfeiture
As part of the plea agreements, Travis Slaughter has agreed to forfeit approximately $2.7 million in proceeds derived from the fraud. He also faces a restitution payment of about $6.7 million linked to payroll tax losses, an outstanding $2.7 million for unpaid workers’ compensation premiums, and $270,000 for two already paid workers’ compensation claims. Tripp Slaughter’s forfeiture amounts to around $416,000. His restitution obligations include $623,000 for payroll tax losses, $416,000 for unpaid workers’ compensation premiums, and $137,778 for a previous claim.
Business Operations and Tactics
The Slaughters’ roofing business operated from 2007 through 2020. During this timeframe, they contracted with professional employer organizations (PEOs) to manage payroll. However, they failed to disclose the full number of hours worked or wages owed to their employees, facilitating a fraudulent payroll system. Employees received “split checks” — one from the PEO that accounted for some taxes and another from the company that did not, allowing them to evade full payroll tax payments.
Tax Evasion Summary
From January 2017 to July 2020, the total payroll checks issued by the PEOs amounted to roughly $4,930,613, which included the required tax deductions paid to the IRS. In contrast, the Slaughters issued direct checks from their company totaling about $18,545,845, evading payroll taxes to the tune of $2,768,377.
Impact on Workers’ Compensation Insurance
The PEOs also secured workers’ compensation coverage for the business. The premiums were based on the wages the company reported to PEOs. If they had reported the actual payroll, which they did not, the insurers would have charged an additional $2,780,947 in premiums.
Personal Tax Obligations
Both men admitted to failing to report personal income to the IRS as well. For Travis Slaughter, unpaid taxes between 2014 and 2019 amounted to $2,467,183. His co-defendant, Tripp Slaughter, had unpaid taxes of $263,614 from 2015 to 2019.
Next Steps
A sentencing date for Travis and Tripp Slaughter has yet to be scheduled. In a related note, Travis Slaughter is also under investigation for failure to pay $2.2 million in fines imposed by the U.S. Occupational Safety and Health Administration (OSHA).
