Man Pleads Guilty in $1 Million IRS Payroll Tax Fraud Conspiracy

Henry Collins admitted to paying workers in cash at Egg Harbor Township business to conceal wages and avoid taxes over a six-year period.

A Philadelphia man has pleaded guilty to conspiring to defraud the Internal Revenue Service (IRS) by concealing payroll through off-the-books cash payments, resulting in an estimated $1 million tax loss. The announcement was made by U.S. Attorney Alina Habba.

Henry “Hank” Collins, 53, entered his guilty plea before U.S. District Judge Karen M. Williams in Camden federal court to one count of conspiracy to defraud the IRS. Sentencing is scheduled for August 18, 2025. The charge carries a maximum penalty of five years in prison and a fine of up to $250,000.

According to court documents and statements made during the hearing, Collins was employed at Davis Brothers Chimney Sweep & Masonry, a business located in Egg Harbor Township, New Jersey. Between January 1, 2018, and April 30, 2024, Collins conspired with the spouse of the business owner to execute a payroll tax evasion scheme.

Collins used a commercial check-cashing service to convert company receipts into cash. That money was then used to pay Collins and other employees off the books. A portion of the funds was also given to the owner and their spouse. These transactions were concealed from the company’s accounting firm, which unknowingly filed false payroll tax returns that excluded the cash-paid employees and their wages.

Additionally, Collins admitted to filing false individual income tax returns that omitted his own unreported cash earnings. The conspiracy, which continued for more than six years, ultimately deprived the IRS of approximately $1 million in tax revenue.

The investigation was conducted by special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark.

The case is being prosecuted by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.