Texas man sentenced in $1.6 million oil equipment fraud

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KANSAS CITY, Mo. – A Houston, Texas, man has been sentenced in Missouri to five years in federal prison for defrauding two brothers out of $1.6 million, which he used for trips to Las Vegas and other personal expenses.

Duc Nguyen, 58, was also ordered Monday to pay $1.6 million in restitution. He pleaded guilty in July 2021 to one count of wire fraud.

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Prosecutors said Nguyen persuaded Phillip Hudnall of Lenexa, Kansas, and his brother, Brian Hudnall, of Kansas City, Missouri, to invest in a plan to buy, refurbish and sell used oil equipment.

Between August 2018 and June 2019, the brothers raised money and transferred $1.6 million in 29 separate transactions to Nguyen, who admitted he didn't use any of the funds for the oil equipment plan.

Phillip and Brian Hudnall pleaded guilty in June 2020 to defrauding other investors and a bank out of $4.5 million as part of the scheme. Most of that money was used for personal expenses.

Brian Hudnall is serving three year in federal prison and must pay $4.5 million in restitution. Phillip Hudnall is scheduled to be sentenced on April 26.


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