Former Morgan Hill Real Estate Broker Convicted Of Bankruptcy Fraud
Goyko “Batzi” Kuburovich convicted of multiple fraud crimes related to his personal bankruptcy filing; his daughter, Kristel Kuburovich, also convicted of a bankruptcy offense
SAN JOSE- Goyko Gustav Kuburovich, also known as “Batzi” Kuburovich and “Gus” Kuburovich, and his daughter, Kristel Kuburovich were convicted of bankruptcy fraud-related crimes by a federal jury announced United States Attorney Alex G. Tse and Special Agent in FBI Special Agent in Charge John F. Bennett. The verdicts were handed down yesterday following a jury trial before the Honorable Edward J. Davila, U.S. District Judge.
The jury found Goyko Kuburovich, 58, formerly of Morgan Hill and currently a resident of Auburn, guilty of one count of bankruptcy fraud, one count of concealment of assets during a bankruptcy proceeding, and one count of making false statements during a bankruptcy proceeding. Kristel Kuburovich, 29, also of Auburn, was found guilty of one count of concealment of assets during a bankruptcy proceeding. Ms. Kuburovich was acquitted of one count of bankruptcy fraud.
Evidence at trial showed that Goyko Kuburovich enlisted his daughter, Kristel Kuburovich, in a scheme to defraud the bankruptcy court for the purpose of concealing Goyko Kuburovich’s real property and cash assets. To implement this scheme, Goyko Kuburovich executed multiple financial transactions, including by and through Kristel Kuburovich. The trial evidence proved that when Goyko Kuburovich filed a bankruptcy petition in 2010, he fraudulently omitted his interest in certain real and personal property, the same assets that were the subject of his financial transactions with his daughter. In reaching its verdict, the jury found that through this scheme to defraud, Goyko Kuburovich knowingly and intentionally concealed approximately $870,000 of his assets from the bankruptcy court, while having over $2.5 million of debt discharged by the bankruptcy court.
On August 25, 2016, a federal grand jury indicted the defendants, charging them with one count of bankruptcy fraud, in violation of 18 U.S.C. § 157(1), and one count of concealment of assets during a bankruptcy proceeding, in violation of 18 U.S.C. § 152(1). Goyko Kuburovich also was charged with one additional count of making false statements during a bankruptcy proceeding, in violation of 18 U.S.C. § 152(3).
The defendants are currently released from custody on separate bonds. The next court appearance is set before Judge Davila on October 9, 2018, at 1:30 p.m. for a hearing on the defendants’ motion for a judgment of acquittal. No date has been set yet for a sentencing hearing.
The maximum statutory penalty for each count is five years imprisonment and a $250,000 fine plus restitution, if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Scott Simeon and Jeff Schenk are prosecuting the case with the assistance of Laurie Worthen and Lakisha Holliman. The prosecution is the result of a five-year investigation by the Federal Bureau of Investigation.