On March 30, 2009, United States Attorney James R. Dedrick filed an Information in the United States District Court charging Dunn with income tax evasion.

According to court documents, Dunn admitted that from 2001 through 2006, Dunn earned income providing mortgage-broker related services. Additionally, for the purpose of concealing his income from the IRS through the concealment of personal wealth and assets, Dunn transferred the ownership of various properties from his name into various trusts. Dunn also admitted that he presented to his bank checks payable to his business for immediate cash payment to prevent the checks from posting to his business’ bank account, thereby concealing his income from the IRS in the event of an audit. Dunn admitted that through his conduct he evaded $248,220 in income tax owed to the United States collectively for calendar years 2001 through 2006.

Judge Phillips has scheduled Dunn's sentencing for August 20, 2009. Dunn could receive a sentence of up to five (5) years imprisonment and a $250,000 fine. This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the United States.

For further information, contact U.S. Attorney James R. Dedrick, Assistant U.S. Attorney F. M. (Trey) Hamilton III, or Public Information Officer Sharry Dedman-Beard, at 865-545-4167.