By: Richard L. Smith
A Philadelphia man has admitted to playing a central role in a years-long scheme to avoid paying payroll taxes by compensating employees in cash and concealing the payments from federal authorities, according to information released by the U.S. Department of Justice.
Henry “Hank” Collins, 53, pleaded guilty before U.S. District Judge Karen M. Williams to one count of conspiracy to defraud the Internal Revenue Service.
The guilty plea stems from a financial scheme involving Davis Brothers Chimney Sweep & Masonry, a business located in Egg Harbor Township, New Jersey, where Collins was employed.
Federal prosecutors say that between January 2018 and April 2024, Collins conspired with the spouse of the company’s owner to underreport employee wages and avoid payroll taxes.
Collins admitted to cashing significant business receipts through a commercial check-cashing service and using the funds to pay himself and other employees off the books.
The remainder of the cash was handed over to the business owner and spouse.
As part of the cover-up, Collins provided inaccurate information to the company’s outside accountants, leading to the filing of false payroll tax returns that excluded employees paid in cash.
He also acknowledged submitting personal tax returns that failed to report his own cash income.
According to court documents and statements made during the proceedings, the scheme caused the IRS to lose approximately $1 million in tax revenue.
The conspiracy charge carries a maximum sentence of five years in prison and a fine of up to $250,000.
Collins is scheduled to be sentenced on August 18, 2025.