(KRON) — The president of a rock-crushing business in Brisbane has been convicted on tax fraud charges this week, 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 US. The Grand Jury indicted Nubla and Ku in 2021. Nubla was also charged with one count of tax evasion. The defendants were found guilty of all counts.
Th evidence shared during the trial showed that Ku deposited checks written from by Nubla from Brisbane Recycling Company which totaled more than $18,000,000. Nubla would then expense payments from Brisbane Recycling Company to Ku’s companies as royalties. The men aimed to help the company avoid paying corporate income taxes, the U.S. Attorney’s Office said.
Ku purchased three homes for Nubla and wrote him a cashier’s checks totaling more than $7 million for a “fake loan” in order to repay the funds. The U.S. Attorney’s Office says Nubla failed to report more than $5.8 million in income in the year 2014 alone.
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The sentencing hearing for the defendants hasn’t been scheduled yet, the U.S. Attorney’s Office says. The men both face a statutory maximum of five years in prison. Nubla faces an additional five years in prison as well as a $100,000 fine for tax evasion.