Lawrence Builder Who Bragged He Had City Commissioner in His Pocket Sentenced to Federal Prison

TOPEKA, KS—David Ray Freeman, 46, Lawrence, Kansas has been sentenced to 18 months in federal prison, U.S. Attorney Lanny Welch said today.

Freeman pleaded guilty to one count of conspiracy to commit bank fraud in connection with a Junction City housing development project. Freeman admitted that 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 Junction City Commissioner Michael R. “Mick” Wunder and the commissioner’s wife. The payments included:

• A check for $5,000 on May 1, 2006, to Wunder’s wife.
• A check for $5,000 on July 5, 2006, to Wunder.
• A check for $9,000 converted to cash in March 2007 and delivered to Wunder 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 Wunder and become friends with him when Freeman traveled to Junction City, Kansas 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 Wunder.

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.