Three Austinites Plead Guilty to Federal Fraud and Tax Charges
Three Austinites face federal prison terms and millions in restitution after pleading guilty to defrauding Dell, Inc. and the Internal Revenue Service announced United States Attorney Richard Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Special Agent in Charge William Cotter, San Antonio.
Appearing before U.S. Magistrate Judge Andrew Austin this morning, 50-year-old Kelly Burton Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return. Yesterday afternoon, Kelly’s wife, 47-year-old Tobie R. Nunn, pleaded guilty to the tax charge and a third defendant in this case, 55-year-old Bryan Dale Wallace, pleaded guilty to the conspiracy charge. The conspiracy charge calls for up to five years in federal prison; the tax charge, up to three years in federal prison. The defendants are also subject to a yet-to-be determined amount of restitution in this case. Sentencing, before U.S. District Judge Sparks, has yet to be scheduled.
According to court records, Kelly Nunn and Bryan Wallace conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell, Inc. (Dell), by charging Dell for services Dell did not receive or excessive amounts for services that Dell did receive. Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services (Bison) for computer-aided-design services related to management of Dell’s business locations. The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled. Wallace subsequently paid over $1 million to Nunn during the course of their scheme.
By pleading guilty, Kelly and Tobie Nunn admitted that in April 2011, they intentionally filed electronically a fraudulent 2010 Individual Income Tax Return with the IRS that substantially understated their actual income.
FBI agents and IRS-Criminal Investigation agents investigated this case. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.