Sicklerville Man Admits Tax Evasion, Hiring Illegal Immigrants: U.S. Attorney

A Sicklerville man has admitted his role in a conspiracy to evade payroll taxes on cash wages paid to illegal immigrants employed at his dry cleaning business, U.S. Attorney Paul J. Fishman said on Friday.

Phillip Hui, 37, pleaded guilty to an information charging him with one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens.

Hui owned New Eastern Cleaners in Voorhees along with Kathy Lei, 35, of Williamstown, according to documents filed in the case and statements made in court.

Lei owned a house on South Main Street in Williamstown with two other people.

Hui and Lei hired foreign nationals, generally from Mexico or Guatemala, who did not have legal status in the United States Hui at various times in 2012 and 2013.

While working at New Eastern Cleaners, the undocumented immigrants lived in the South Main Street house.

They were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Their rent was part of the employment compensation, and Hui and Lei paid them in cash at various points.

Hui also admitted he would arrange for them to come to work from the South Main Street house, or he would pick them up himself.

Hui also admitted that wages and pay employment taxes 2 for at least 13 undocumented immigrant employees in 2012 and at least 14 undocumented immigrant employees in 2013 went unreported for tax purposes. As a result, Lei and Hui failed to pay the IRS employment taxes of at least $97,104 for the undocumented immigrant employees.

Lei pleaded guilty to the same charges on May 2.

Sentencing for both is scheduled for Aug. 11