The president of a rock-crushing business in Brisbane has been convicted on tax fraud charges.
According to a press release from the U.S. Attorney’s Office for the Northern District of California, Joseph Nubla, president of Brisbane Recycling Company, Inc., and his former legal counsel, Henry Ku, were charged with one count of conspiring to defraud the U.S.
In 2021, the Grand Jury indicted Nubla and Ku. They were found guilty of all charges.
Evidence shown during the trial reveals that Ku deposited checks written by Nubla from Brisbane Recycling Company totaling more than $18,000,000.
The U.S. Attorney’s Office said that Nubla would expense payments from the Brisbane Recycling Company to Ku’s company as royalties. This is so the company could avoid paying corporate income taxes.
Ku purchased three homes for Nubla and wrote him a cashier’s check for more than $7 million for a “fake loan” to repay the funds.
The U.S. Attorney’s Office says Nubla failed to report more than $5.8 million in income in 2014 alone.
Ku and Nubla are facing a statutory maximum of five years in prison, with Nubla facing an additional five years and a $100,000 fine for tax evasion.
There is no schedule for the sentencing hearing for the defendants yet.