JUST IN: Two Austinites sentenced to federal prison for defrauding Dell Inc., officials say


A federal judge sentenced two Austinites Friday to more than two years in prison for defrauding Dell Inc. and the Internal Revenue Service, federal officials said.

Kelly Nunn, 50, pleaded guilty to one count of conspiracy to commit wire fraud and one count of submitting a false income tax return. Bryan Wallace, 55, pleaded guilty to conspiracy.

Prosecutors said the two conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell Inc., by charging Dell for services Dell did not receive or charging excessive amounts for services that Dell did receive.

Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services for computer-aided design services, prosecutors said.

“The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled,” according to a U.S. Department of Justice statement. “Wallace paid over $1 million to Nunn during the course of their scheme.”

U.S. District Judge Sam Sparks sentenced Nunn to 40 months in prison and Wallace to 26 months. Nunn must also pay $10.8 million in restitution, and Wallace must pay $849,000 in restitution.


Reader Comments ...


Next Up in Local

Texas jail guard thanks inmates who aided him during heart attack
Texas jail guard thanks inmates who aided him during heart attack

A former Texas jail guard still becomes emotional when he thinks about the day several prisoners helped save his life when he suffered a massive heart attack. “Instead of overtaking me and taking my gun, and killing me or taking a hostage and escaping, they looked at me as a human being,” Gary Grimm told WFAA.  Grimm, 52, was...
San Antonio man arrested after chase, SWAT standoff that closed I-35 in New Braunfels
San Antonio man arrested after chase, SWAT standoff that closed I-35 in New Braunfels

A San Antonio man is in custody Tuesday after a three-hour SWAT standoff with New Braunfels police that shut down Interstate 35 Monday night. Ruben Ramirez Jr., 46, was expected to be booked into the Comal County Jail after authorities said he had robbed a Lowe’s home improvement store and led officers on a chase before the standoff. Police...
Police: Ohio 7th-grader suffers self-inflicted wound after bringing gun to school
Police: Ohio 7th-grader suffers self-inflicted wound after bringing gun to school

A seventh-grader was hospitalized after suffering an apparent self-inflicted gunshot wound at an Ohio middle school, police said Tuesday. Shortly before 8 a.m., the boy shot himself in a restroom at Jackson Memorial Middle School, Jackson Township police Chief Mark Brink said. Superintendent Christopher DiLoreto said middle school officials will decide...
'Kill the NRA' written across billboard on Louisville interstate
'Kill the NRA' written across billboard on Louisville interstate

A vandalized billboard on a major interstate highway in Kentucky has become a focal point for both sides of the gun control debate in the wake of last week’s shooting at a high school in Parkland, Florida, that left 17 people dead. A sign along I-65 in Louisville reads “Kill the NRA,” the Louisville Courier-Journal reported....
TRAFFIC ALERT: Train blocking Oltorf, Mary streets in South Austin
TRAFFIC ALERT: Train blocking Oltorf, Mary streets in South Austin

Traffic delays were expected in South Austin on Tuesday morning after a stalled train blocked both Oltorf and Mary streets just west of South Lamar Boulevard. Drivers were encouraged to find alternate routes through the area. Emergency personnel, including Austin police, had responded to an initial report of a pedestrian being struck, but no one has...
More Stories