Lawrence Builder Who Bragged He Had City Commissioner in His Pocket Pleads Guilty to Conspiracy Charge

TOPEKA, KS—David Ray Freeman, 45, Lawrence, Kan., has pleaded guilty to one count of conspiracy to commit bank fraud in connection with a Junction City housing development project, U.S. Attorney Lanny Welch said today.

In his plea, Freeman admits in 2006 while he was a building contractor and a part owner of Big D, LLC, and other companies, he arranged for money to be paid to a Junction City Commissioner and the commissioner’s wife. The payments included:

• A check for $5,000 on May 1, 2006, to the wife of the Junction City Commissioner.
• A check for $5,000 on July 5, 2006, to the Junction City Commissioner.
• A check for $9,000 converted to cash in March 2007 and delivered to the Junction City Commissioner during a meeting at a rest stop between Topeka and Junction City, Kan.

Freeman instructed his assistant to draw and cash checks for amounts of less than $10,000 in order to avoid having the bank make a report to the government on the transactions. The Bank Secrecy Act requires the filing of a currency transaction report for transactions of more than $10,000. Federal law makes it a crime to knowingly structure a financial transaction to cause a bank to fail to file such a report.

In 2004, Freeman met the Junction City Commissioner and become friends with him when Freeman traveled to Junction City, Kan., to look into investments in land for the construction of new houses. At the time, Junction City officials were expecting a large troop buildup at Fort Riley. The city of Junction City began annexation of 1,400 acres and laid plans for the city to grow rapidly.

On May 5, 2006, Freeman and his business partners formed Big D Development, LLC, and Big D Construction, LLC. At the time, Freeman bragged to partners in Big D and others that he had a Junction City Commissioner in his pocket and he could get anything through the City Commission.

On July 27, 2006, Big D was the beneficiary of a development contract with the City of Junction City for Sutter Woods Subdivision. On Aug. 30, 2006, Big D received a development contract for Sutter Highlands Subdivision. Together, the two contracts were worth more than $12 million to Big D.

Sometime after the City Commission awarded the Sutter Wood development contract, Big D set aside a choice lot for a residential home for “firefighter,” which was a code name for the Junction City Commissioner.

Sentencing is set for Sept. 29, 2009. Freeman faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Welch commended the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigation Division, Assistant U.S. Attorney Richard Hathaway and Assistant U.S. Attorney Christine Kenney for their work on the case.