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Wallace signed with Ole Miss earlier this month after a record-setting season in which he led East Mississippi Community College to the national championship.
He is expected to compete for the starting job when the Rebels begin spring drills in late March.
According to Oxford Police Chief Mike Martin, Wallace was issued a post-arrest citation shortly after 10 p.m., at Rooster's Blues House last Thursday.
Ole Miss coach Hugh Freeze said in a statement that he was aware of the situation and will address it internally.