CAMDEN, NJ — A Philadelphia man admitted in federal court that he conspired to defraud the IRS by paying workers under the table at a New Jersey chimney service company, resulting in a $1 million tax loss, U.S. Attorney Alina Habba announced.
Key Points
- Henry “Hank” Collins, 53, pleaded guilty to conspiring to defraud the IRS by paying workers in cash.
- Collins operated the scheme through Davis Brothers Chimney Sweep & Masonry in Egg Harbor Township, NJ.
- The conspiracy, which ran from 2018 to 2024, caused a tax loss of approximately $1 million.
Cash payments to avoid taxes
Henry Collins, 53, of Philadelphia, pleaded guilty before U.S. District Judge Karen M. Williams to one count of conspiracy to defraud the United States. Prosecutors said Collins worked at Davis Brothers Chimney Sweep & Masonry, where he conspired with the spouse of the company’s owner to avoid paying payroll taxes.
From January 1, 2018 through April 30, 2024, Collins used a commercial check casher to convert company checks into cash. He then used the cash to pay employees, including himself, off the books.
Falsified tax records
Collins admitted that he provided the remaining funds to the business’s owner and spouse. To cover the scheme, he supplied false payroll information to the company’s accounting firm, which led to the filing of fraudulent tax returns that omitted cash-paid employees and their wages.
Collins also admitted to filing false personal income tax returns that concealed his own earnings from the scheme.
Sentencing set for August
The conspiracy count 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.
The investigation was led by IRS-Criminal Investigation under Special Agent in Charge Jenifer Piovesan in Newark.
A Philadelphia man faces prison after admitting to a years-long scheme to cheat the IRS out of $1 million.