Philadelphia, PA – A Philadelphia man has pleaded guilty to a multi-year payroll tax fraud scheme that caused over $1 million in losses to the federal government, according to the U.S. Attorney’s Office for the District of New Jersey.
Henry “Hank” Collins, 53, entered his guilty plea on one count of conspiracy to defraud the United States before U.S. District Judge Karen M. Williams, officials said Friday.
Court records show that Collins worked for Davis Brothers Chimney Sweep & Masonry, a company based in Egg Harbor Township, New Jersey. From January 1, 2018 to April 30, 2024, he conspired with the owner’s spouse to cash gross receipt checks through a commercial check casher. The funds were used to pay workers—including Collins himself—in cash, allowing the company to evade payroll tax obligations.
Collins reportedly distributed cash wages to employees, kept a share, and returned the remainder to company principals. He also gave false information to accountants, leading to fraudulent payroll tax filings that concealed these off-the-books payments.
Additionally, Collins filed false personal tax returns that failed to disclose his hidden income from the scheme.
If convicted, he faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for August 18, 2025.
This case highlights ongoing federal efforts to crack down on employment tax evasion and hold individuals accountable for defrauding the Internal Revenue Service (IRS).
