A Philadelphia resident, Henry Collins, has admitted to conspiring to defraud the Internal Revenue Service (IRS) by paying himself and his co-workers in cash, a move intended to avoid payroll taxes. The U.S. Attorney Alina Habba disclosed this development.
Henry “Hank” Collins, aged 53, appeared before U.S. District Judge Karen M. Williams. He pleaded guilty to a charge of conspiracy against the IRS.
Details of the case reveal Collins' role at Davis Brothers Chimney Sweep & Masonry in Egg Harbor Township, New Jersey. From January 2018 to April 2024, Collins worked with the business owner’s spouse in a scheme to defraud the IRS. Through a commercial check casher, he negotiated company receipts into cash. This cash was used to pay employees, including himself, without recording these transactions in payroll tax documents. False data was given to the business’s accounting firm, resulting in faulty tax returns and omitting these cash-based salaries. Additionally, Collins admitted to filing his tax returns that hid his cash earnings.
The conspiracy is reported to have caused an estimated tax loss of $1 million. The offense he pleaded guilty to carries a potential five-year prison sentence and a fine reaching $250,000. His sentencing is set for August 18, 2025.
U.S. Attorney Habba acknowledged the investigation efforts of the IRS-Criminal Investigation team under the leadership of Special Agent in Charge Jenifer Piovesan in Newark.
Assistant U.S. Attorney Jeffrey Bender from the U.S. Attorney’s Office in Camden is handling the government’s representation in this matter.
