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

Posted February 2nd, 2018

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.

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