Two Austinites Sentenced to Federal Prison on Fraud and Tax Charges
In Austin today, a federal judge sentenced two Austinites to federal prison for defrauding Dell, Inc. and the Internal Revenue Service, announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Acting Special Agent in Charge Andy Tsui, San Antonio.
Senior United States District Judge Sam Sparks sentenced 50-year-old Kelly Burton Nunn and 55-year-old Bryan Dale Wallace to 40 months and 26 months in federal prison, respectively, followed by three years of supervised release. Judge Sparks also ordered that Nunn pay $10,888,122 restitution; Wallace, $849,000 restitution--jointly and severally with Nunn.
“Today’s sentencing is a reminder that the Department of Justice takes fraud against the business community very seriously,” stated United States Attorney John F. Bash. “Together with our law-enforcement partners, we will remain steadfast in our efforts to protect the American economy from those who seek to profit from deception and dishonesty.”
In November 2017, Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return. Wallace pleaded guilty to the conspiracy charge.
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.
“The defendants in this case carried out a lengthy scheme of fraud and deception for their own personal gain,” said FBI Special Agent in Charge Christopher Combs. “The message today is clear - those who seek to line their pockets by defrauding others will be held accountable.”
On November 8, 2017, Kelly’s wife--47-year-old Tobie R. Nunn--pleaded guilty to the same tax charge as her husband. By pleading guilty, the Nunns 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.
Tobie Nunn remains on bond pending sentencing scheduled for 9:00am on February 23, 2018, before Judge Sparks. She faces up to three years in federal prison.
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.