Philadelphia business owner Henry “Hank” Collins Pleads Guilty in $1 Million Tax Fraud Scheme Involving New Jersey Masonry Company
Federal Charges Filed in Massive IRS Tax Evasion Case
In a major development highlighting ongoing IRS investigations into business tax fraud, a Philadelphia man has admitted to helping a South Jersey masonry company evade nearly $1 million in federal taxes, according to the U.S. Attorney’s Office for the District of New Jersey.
Henry “Hank” Collins, 53, pleaded guilty on Friday to conspiracy to defraud the IRS, a federal crime that could carry significant prison time. Authorities say Collins played a central role in a long-running scheme to underreport income and hide cash payments while working at Davis Brothers Chimney Sweep & Masonry, a business based in Egg Harbor Township, Atlantic County, New Jersey.
How the New Jersey Business Avoided Paying Federal Taxes
Federal prosecutors allege that over a six-year period, Collins helped the company and its leadership dodge tax responsibilities by manipulating financial records. Specifically, he cashed large amounts of the company's gross receipts through a commercial check-cashing service, bypassing traditional banking systems and leaving little paper trail.
This cash was then used to pay himself, the business owner, the owner’s spouse, and other employees—none of which was reported to the company's accountant. By omitting this income from official tax documents, the business filed fraudulent returns that significantly understated earnings.
Personal Tax Fraud Adds to the Charges
In addition to helping the company commit tax fraud, Collins also failed to report his own cash wages on his personal income tax returns, further deepening the legal consequences.
The names of the business owner and their spouse have not been released, and no charges have been publicly filed against them at this time.
Sentencing Date Set for August
Collins is scheduled for sentencing on August 18, and he could face a combination of fines, restitution, and prison time. The case serves as a reminder of the IRS’s aggressive stance on corporate tax evasion and the growing scrutiny on small-to-medium businesses involved in under-the-table payment schemes.
SOURCE: NJ.COM
