A man from Philadelphia, Henry “Hank” Collins, has acknowledged his role in a scheme to defraud the IRS by paying himself and colleagues in cash, thus avoiding payroll taxes. This development was made public by U.S. Attorney Alina Habba.
Collins, 53, entered a guilty plea in front of U.S. District Judge Karen M. Williams to one count of conspiring to defraud the IRS.
Court documents and testimonies revealed that Collins was an employee at Davis Brothers Chimney Sweep & Masonry in Egg Harbor Township, New Jersey. From January 1, 2018, to April 30, 2024, Collins and the spouse of the business owner orchestrated the conspiracy. They reportedly used a commercial check casher to process Davis Brothers' receipts, subsequently paying employees, including Collins, in cash. The rest of the money was handed over to the business owner and spouse. Collins is said to have provided deceptive information to the business's accounting firm, leading to false payroll tax returns that omitted the cash payments. He also admitted to filing false personal income tax returns to hide his cash earnings. The total tax loss from this scheme is estimated at $1 million.
The conspiracy charge may result in a maximum five-year sentence and a fine soaring to $250,000. Collins' sentencing is slated for August 18, 2025.
U.S. Attorney Habba acknowledged the efforts of the IRS-Criminal Investigation special agents, supervised by Special Agent in Charge Jenifer Piovesan in Newark, for their role in securing the guilty plea.
Assistant U.S. Attorney Jeffrey Bender from the U.S. Attorney’s Office in Camden is representing the government in this case.
Defense is being handled by Joseph Marrone, Esq., based in Philadelphia, Pennsylvania.