Danville Man Convicted Of Fraud Gets 3 Years, $9.3M In Restitution

DANVILLE, CA — A Danville man was sentenced to 36 months in prison following fraud and tax evasion convictions in April, the Department of Justice announced. Joseph Nubla’s former attorney Henry Ku was sentenced to 30 months. In addition to the sentences, Chief U.S. District Court Judge for the Northern District of California Richard Seeborg ordered Nubla and Ku to pay fines of $15,000 and $10,000, respectively, and $9,322,549 in restitution. The defendants are joint and severally liable for the restitution payment.

Nubla, 45, is president of Brisbane Recycling Company, Inc., a rock-crushing business in Brisbane, California. Ku was formerly counsel for Brisbane and Nubla. Evidence at a trial showed that between February 2009 and March 2015, Ku, along with several businesses he owned, deposited more than $18 million worth of checks written by Nubla on behalf of Brisbane, according to the DOJ. To avoid paying corporate income tax, Nubla expensed Brisbane’s payments as royalties for the use of heavy equipment owned by Ku’s companies.

In reality, Ku had used the funds from Brisbane to purchase the equipment. Ku returned the funds to Nubla, through regular money transfers; purchasing Nubla three homes; and writing cashier’s checks totaling $7 million pursuant to a fake loan. Nubla did not declare those funds as personal income, even though they originated from his business and were taxable.

“These defendants skirted paying their taxes out of pure greed,” U.S. Attorney Ismail Ramsey said in a statement. “Today’s sentences send a clear message to those who try to avoid paying their fair share that our office will always marshal its resources to protect the public treasury.”