United States Attorney Roger B. Handberg announces the return of an indictment charging Travis Morgan Slaughter and Tripp Charles Slaughter with conspiracy to commit wire fraud and conspiracy to commit tax fraud related to a roofing business that they operated. Travis Slaughter is also charged with failing to account for and pay over payroll taxes to the IRS and evading personal income taxes for the years 2017 through 2019. Tripp Slaughter is also charged with filing false personal income tax returns for the years 2016 through 2019.
The wire fraud conspiracy count carries a maximum penalty of 20 years in federal prison and the tax fraud conspiracy and evasion of taxes counts each carry a maximum penalty of 5 years’ imprisonment. The filing false tax return counts each carry a maximum penalty of 3 years’ imprisonment. The indictment also notifies the defendants that the United States intends to seek forfeiture of a total of approximately $3 million, the estimated amount of proceeds obtained as a result of the wire fraud conspiracy.
According to the indictment, Travis Morgan Slaughter and Tripp Charles Slaughter operated a roofing business in Jacksonville under the name Great White Construction, Inc. (a/k/a Florida Roofing Experts, Inc., a/k/a 5 Star Roofing Services LLC). The company contracted with professional employer organizations ("PEOs") to prepare payroll checks for the company's employees, after making deductions for payroll taxes, and to file payroll tax returns and forward tax payments to the governmental authorities.
However, the company did not provide the PEOs with information about all of the hours worked by or all of the wages due to its employees. Instead, the company also paid the employees directly, with separate checks drawn on company bank accounts, and did not deduct payroll taxes from these checks. By paying employees with “split checks”—one from the PEO and one from the company—the company avoided paying the full amount of payroll taxes due to the IRS.
On many occasions, the company issued checks from its checking account in lump sum amounts to work crew leaders for work performed by the crews. Many of the workers on these crews were citizens of other countries who were living and working in the United States illegally. The work crew leaders obtained cash for the checks and paid the workers on the crews in cash. Paying the workers in cash helped these undocumented non-citizens to continue to live and work in the United States illegally.
During the period of January 2017 through July 2020, the PEOs issued payroll checks to the employees totaling approximately $4,930,613, after deducting and paying over to the IRS the payroll taxes due. During that same period, the company issued checks to the employees totaling approximately $18,545,845, with no payroll taxes being deducted or paid. The unpaid payroll taxes on that amount—including only the Social Security and Medicare taxes and income tax that should have been withheld from the employees’ pay—was $2,768,377.
The PEOs also secured workers’ compensation insurance coverage for the company. The premiums charged by the workers’ compensation insurers were based on the total amount of payroll that the company reported to the PEOs. If the company had reported the actual amount of payroll, the insurers would have charged additional premiums totaling millions of dollars.
Travis Slaughter evaded the payment of income taxes for the years 2017 through 2019 by, among other things, failing to file a tax return for 2017 and not filing returns for 2018 and 2019 until 2021, which returns significantly underreported his income from the business. He also withdrew hundreds of thousands of dollars from business bank accounts, fraudulently transferred two properties to his children, and purchased four properties that he fraudulently titled in the names of his children.
Tripp Slaughter filed false tax returns for the years 2016 through 2019 by failing to include the income he was paid directly by the company that totaled approximately $121,492 and failing to report business income that totaled approximately $847,597.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Original source can be found here
