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Malibu Man Gets Five Years Probation for Grand Theft and Tax Charges

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Public Affairs Office Brenda Voet

For Immediate Release


Sacramento – A Malibu man was given five years probation after pleading guilty to grand theft and filing false state income tax returns, the Franchise Tax Board (FTB) announced.

Dale Duko, 50, was also ordered to pay restitution of $36,168 to FTB for unpaid taxes, penalties, interest, and the cost of the investigation. According to court documents, Duko was employed as a manager of a local sound studio. Duko abused his position of trust by embezzling more than $230,000 from his employer during the years 1999 through 2006. Duko diverted payments made to his employer into his personal bank account. He failed to claim any of the embezzled income on his state income tax returns for the same period. All income is taxable, including income from illegal sources.

The underreporting of income is part of the $6.5 billion tax gap now facing California. The tax gap is defined as the difference between the tax that is owed and the tax that is due.

Los Angeles County Superior Court Judge David M. Horwitz handed down the sentence in Department 50 of the Clara Shortridge Foltz Criminal Justice Center. Los Angeles County Deputy District Attorney Serena Murillo prosecuted the case. This was a joint investigation between the Los Angeles County District Attorney’s Office and the FTB.

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