Brisbane Recycling Company President Joseph Nubla and the company’s corporate counsel, Henry Ku, have been indicted on charges of trying to hide more than $18 million in income from the IRS, The Mercury News reports.
From 2009-15, court records allege that Nubla wrote checks in excess of $18 million to businesses controlled by Ku, Pegasus Aggregate Inc. and Jupiter Prime Monarch (JPM), to hide the money from the IRS.
Brisbane Recycling Company, located in Brisbane, California, is an aggregates recycling company that serves the San Francisco Bay Area.
Nubla is also accused of providing “false information to Brisbane's tax return preparer that Brisbane monies paid to Pegasus and JPM were for legitimate business expenses, thereby causing inflated cost of goods sold and other false business deductions to be reported on Brisbane's federal corporate income tax returns.”
The indictment also charges Nubla with failing to report more than $6 million in taxable income.
The money gained from the alleged scheme allowed Nubla and Ku to purchase expensive real estate in the Bay Area.
The conspiracy charge can result in a maximum sentence of five years in prison and a $250,000 fine.
The first court appearance for Nubla and Ku has been set for April 16 before U.S. Magistrate Judge Jacqueline Scott Corley.