![[US] Pennsylvania man admits conspiring to defraud the IRS of $1m](http://gpa.net/cdn/shop/articles/bigstock--163197353_2_32be2348-917a-45cb-86e5-4e154734c485_1200x.jpg?v=1745708721)
A man from Pennsylvania has admitted conspiring to defraud the Internal Revenue Service (IRS) by paying himself and his co-workers in cash to avoid payroll taxes, IRS reports.
According to an announcement from U.S. Attorney Alina Habba, Henry “Hank” Collins of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Karen M. Williams to an information charging him with one count of conspiring to defraud the IRS.
Documents filed in this case and statements made in court stated that Mr Collins worked at Davis Brothers Chimney Sweep & Masonry (“Davis Brothers”), a business located in New Jersey. Mr Collins admitted that between January 1, 2018 and April 30, 2024, he conspired with the spouse of the owner of Davis Brothers to defraud the IRS.
As part of the conspiracy, Mr Collins reportedly utilised a commercial cheque casher to negotiate a substantial amount of Davis Brothers’ gross receipts cheques. Mr Collins used some of the resulting cash to pay himself and other Davis Brothers employees in cash. Mr Collins provided the rest of the cash to the business owner and spouse.
He subsequently provided false and misleading information to the business’s outside accounting firm, which resulted in the preparation and filing of false payroll tax returns that omitted the employees paid in cash and their cash wages. Mr Collins also admitted filing false individual income tax returns for himself that concealed his own cash wages. He admitted that the conspiracy resulted in a tax loss of approximately $1 million.
The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000. Sentencing is scheduled for August 18, 2025.
U.S. Attorney Habba reportedly credited special agents of IRS Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to Mr Collins’ April 11 guilty plea.
Source: IRS
A man from Pennsylvania has admitted conspiring to defraud the Internal Revenue Service (IRS) by paying himself and his co-workers in cash to avoid payroll taxes, IRS reports.
According to an announcement from U.S. Attorney Alina Habba, Henry “Hank” Collins of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Karen M. Williams to an information charging him with one count of conspiring to defraud the IRS.
Documents filed in this case and statements made in court stated that Mr Collins worked at Davis Brothers Chimney Sweep & Masonry (“Davis Brothers”), a business located in New Jersey. Mr Collins admitted that between January 1, 2018 and April 30, 2024, he conspired with the spouse of the owner of Davis Brothers to defraud the IRS.
As part of the conspiracy, Mr Collins reportedly utilised a commercial cheque casher to negotiate a substantial amount of Davis Brothers’ gross receipts cheques. Mr Collins used some of the resulting cash to pay himself and other Davis Brothers employees in cash. Mr Collins provided the rest of the cash to the business owner and spouse.
He subsequently provided false and misleading information to the business’s outside accounting firm, which resulted in the preparation and filing of false payroll tax returns that omitted the employees paid in cash and their cash wages. Mr Collins also admitted filing false individual income tax returns for himself that concealed his own cash wages. He admitted that the conspiracy resulted in a tax loss of approximately $1 million.
The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000. Sentencing is scheduled for August 18, 2025.
U.S. Attorney Habba reportedly credited special agents of IRS Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to Mr Collins’ April 11 guilty plea.
Source: IRS