Jury Convicts Former Junction City Commissioner on Charges of Taking Bribes From Builder
| U.S. Attorney’s Office October 02, 2009 |
TOPEKA, KS—Michael R. “Mick” Wunder, 52, a former city commissioner, and mayor, of Junction City, Kan., has been convicted on charges of taking bribes from a developer who received city contracts to construct new housing developments.
Wunder’s trial, which began Monday, Sept. 28, in U.S. District Court in Topeka, ended today when the jury returned the following verdict:
- Guilty on one count of conspiracy to commit bank fraud, violate the Hobbs Act and structure financial transactions to evade federal currency reporting requirements.
- Guilty on four counts of unlawfully using his position as a Junction City Commissioner to obtain money and other properties.
- Guilty on three counts of bank fraud.
- Guilty on one count of perjury.
The jury returned not guilty verdicts on one count of structuring financial transactions to evade the Bank Secrecy Act requiring reports on transactions of $10,000 or more, and one count of unlawfully using his position as a Junction City Commissioner to obtain money and other properties.
Prosecutors presented evidence that in 2004 Wunder became friends with co-defendant David Ray Freeman, a developer from Lawrence, Kan., who was considering investing in land for constructing new houses in Junction City. At the time, there were reports that soldiers returning to Junction City and Fort Riley would create a booming market for new housing and the city’s population could double. As a result, the city of Junction City began annexation of 1,400 acres to be developed for housing.
Wunder told Freeman that for $10,000 and construction of a new house on one of the lots, Wunder could deliver the necessary votes and approvals to give Freeman’s company, Big D, the exclusive right to develop Sutter Woods and Sutter Highlands, with more than 500 lots for single family residences, duplexes and condos. The development contracts were worth more than $12 million to Freeman’s company. Under the contract, the city would purchase the infrastructure and Big D would have the exclusive right to sell the lots.
On May 1, 2006, Freeman issued a $5,000 check payable to Wunder’s wife. The memo line on the check said, “Loan for Medical Bills.” On May 5, 2006, Freeman and his partners formed Big D Development, LLC, and Big D Construction, LLC. Freeman, who held a 50 percent interest in the businesses, bragged to his partners that he had a Junction City Commissioner in his pocket and he could get anything approved by the commission.
On July 6, 2006, Freeman issued a $5,000 check to Wunder. The memo line on the check said, “Loan Repayment.”
On July 27, 2006, the Junction City Commission approved an agreement with Big D for development of Sutter Woods Subdivision. On Sept. 8, 2006, the commission approved an agreement with Big D for development of Sutter Highlands. The city commission later approved payments in excess of $12 million to benefit Big D.
In late 2006, the city began accepting bids for renovation of the historic Opera House in Junction City. Wunder told Freeman that for $15,000 he could ensure Freeman would receive the winning bid for any company he selected. Freeman selected the company, which received the winning bid, and sent his administrative assistant to deliver $9,000 to Wunder during a meeting at a rest stop on Interstate 70 near Paxico.
Wunder is set for sentencing Jan. 10, 2010. He faces the following penalties:
- Conspiracy: A maximum penalty of 30 years in federal prison and a fine up to $1 million.
- Unlawfully using his official position to obtain money and other properties: A maximum penalty of 20 years and a fine up to $250,000 on each count.
- Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.
- Perjury: A maximum penalty of five years and a fine up to $250,000.
Co-defendant David Ray Freeman pleaded guilty to one count of conspiracy. He is scheduled for sentencing Oct. 16, 2009.
Welch commended the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigation Division, Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway for their work on the case.