On August 6, 2002, at a hotel in his hometown of Davenport, Iowa, Nunn was arrested after paying an undercover agent $200 for one kilogram of cocaine, which had a street value of $24,000. In May 2003, he pleaded guilty to one count of conspiracy to distribute cocaine. The following January, Nunn was sentenced to 292 months in federal prison by U.S. District Judge William Gritzer, who agreed to a higher sentencing guideline after considering Nunn's long history of drug trafficking and the likelihood that he used a firearm during drug deals.