k1083 BC-KS-JunctionCity-Frau 1stLd-Writethru 07-01 0604

Former Junction City commissioner indicted

Eds: RECASTS; CORRECTS that grand jury sted prosecutors making charges; UPDATES with background on indictment, developer's plea; ADDS byline.

By JOHN MILBURN

Associated Press Writer

TOPEKA, Kan. (AP) -- A federal grand jury on Wednesday indicted a former Junction City commissioner on 11 counts, including bank fraud and conspiracy for allegedly taking $19,000 in bribes.

The charges against Michael R. "Mick" Wunder, 52, come a day after a developer pleaded guilty to charges that he gave money to a Junction City commissioner to influence the city's decision to award development contracts.

The indictment against Wunder was issued under seal by a federal grand jury in June and unsealed Wednesday. Wunder was defeated in a re-election bid in April.

Jim Cross, a spokesman for the U.S. Attorney's office, said the case was continuing and that a date hasn't been set for Wunder to make his initial court appearance.

The developer, David Ray Freeman, signed an agreement to cooperate with prosecutors in the ongoing investigation. He is scheduled to be sentenced Sept. 29 and faces up to 30 years in prison and a fine of as much as $1 million.

Efforts to reach Wunder, a city commissioner for more than a decade, were unsuccessful. His number is unlisted in Junction City.

Freeman, 45, of Lawrence, admitted that he gave money to a commissioner with the code name "firefighter" in hopes of winning $12 million in contracts to develop housing in Junction City for soldiers coming to Fort Riley. The Army expects to double the soldier and family population by 2013 with the return of the 1st Infantry Division from Germany. More than 15,000 soldiers are currently assigned to Fort Riley.

When the buildup was announced, military officials told surrounding communities that they would need to build additional housing, schools and infrastructure to handle the influx. Only about a third of all soldiers assigned to Fort Riley are able to live on the northeast Kansas post.

The indictments against Wunder allege that he received cash and gifts not entitled to him in his capacity as a city official in an effort to win contracts to develop housing on the west side of Junction City. Wunder told a grand jury in April that a $9,000 cash payment from Freeman in March 2007 was for three baseballs, a bat and a picture.

According to the charges against Wunder, Freeman issued a $5,000 check from one of his businesses to Wunder's wife on May 1, 2006. Four days later he bragged to his partners and others that he "had a Junction City commissioner in his back pocket."

In June 2006, Freeman allegedly paid for Wunder to spend time at a hotel and restaurant at Country Club Plaza in Kansas City, Mo. Then in July Freeman issued a $5,000 check payable to Wunder.

The Junction City Commission approved a development contract on July 27, 2006, with Freeman's Big D Development LLC to build two subdivisions. One lot in the project was reserved for a home for "firefighter," the code name for Wunder, the indictment said.

If convicted, Wunder faces prison time ranging from five years to 30 years and fines ranging from $250,000 up to $1 million for each count.