A Philadelphia man admitted to conspiring with an unnamed Mays Landing couple to defraud the Internal Revenue Service out of $1 million in taxes.
Henry “Hank” Collins, 53, of Philadelphia, was part of a widespread scheme involving his employer, Davis Brothers Chimney Sweep & Masonry in Egg Harbor Township.
Collins admitted that between Jan. 1, 2018 and April 30, 2024, he conspired with the owner and the owner's spouse to negotiate more than $3.2 million in the company's gross receipt checks, using more than $2 million to pay most of Davis Brothers' employees, including Collins, according to court documents.
No payroll taxes were collected as a result.
Collins then gave most of the remaining cash to the owner and spouse, who are referred to only as Co-Conspirator 1 and Spouse 1 in the court documents. They are listed as living in Mays Landing.
The couple did not report the additional income, resulting in an additional loss of $385,000 to the IRS on Co-Conspirator 1's individual tax filing.
Collins pleaded guilty in Camden Federal Court to to an information charging him with one count of conspiring to defraud the IRS, U.S. Attorney Alina Habba announced Friday.
The count of conspiracy carries a maximum penalty of five years in prison and a fine of as much as $250,000. He is scheduled to be sentenced Aug. 18.
