JACKSONVILLE, Fla. – Two Jacksonville brothers were sentenced to federal prison for their involvement in a multi-million dollar tax and insurance fraud scheme linked to their roofing businesses in the city.
U.S. District Judge Harvey Schlesinger sentenced Travis Slaughter to 41 months in federal prison and Tripp Slaughter to 21 months.
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In November 2024, the brothers pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit tax fraud.
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The Slaughters operated several roofing companies in Jacksonville, including Great White Construction, Florida Roofing Experts, and 5 Star Roofing Services.
Federal investigators revealed that the brothers avoided paying millions in payroll taxes and workers’ compensation premiums through a “split check” scheme.
According to the Department of Justice, employees were paid partially through a professional employer organization (PEO), which withheld payroll taxes, and partially through direct company checks, from which no taxes were deducted.
Between October 2015 and June 2020, the company failed to report approximately $23 million in wages to the IRS, resulting in more than $4.2 million in unpaid payroll taxes.
Additionally, the underreported payrolls allowed the Slaughters to avoid more than $2.7 million in workers’ compensation insurance premiums, officials said.
The court also found that both men underreported their personal incomes. Travis Slaughter owed more than $2.4 million in unpaid taxes from 2014 to 2019, while Tripp Slaughter owed more than $260,000 from 2015 to 2019.
As part of the sentencing, Travis Slaughter was ordered to pay over $9.8 million in restitution to the IRS and insurance companies and to forfeit nearly $2.8 million in proceeds from the fraud.
Tripp Slaughter was ordered to pay more than $1.1 million in restitution and to forfeit over $416,000.
Assistant Special Agent in Charge Tim Hemker of Homeland Security Investigations Jacksonville noted that the brothers exploited the labor of hundreds of undocumented workers while defrauding insurance companies of millions in premiums.
IRS Criminal Investigation, Homeland Security Investigations, the Department of Housing and Urban Development’s Office of Inspector General, and the Florida Department of Financial Services investigated the case.
Initially, the Slaughters faced up to 20 years in prison on the mail and wire fraud charges and five years for the tax fraud charges before accepting plea agreements.
