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Archive for Wednesday, July 7, 2010

Lawrence developer David Freeman begins prison sentence at Arkansas facility

July 7, 2010

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David R. Freeman: Lawrence developer who pleaded guilty to conspiracy to commit bank fraud in relation to land-development bribery case in Junction City. He also, his attorney Carl Cornwell says, provided information to federal prosecutors, IRS and FBI about ticket problems — involving “hundreds of thousands of dollars” in tickets for KU regular-season and tournament games — involving both Kansas Athletics Inc. and the Williams Fund, problems that spurred the KU investigation that led to five resignations of Kansas Athletics personnel. 
Freeman’s disclosures already had triggered the federal investigations that Cornwell expects to lead to federal charges including theft, money laundering and tax evasion. 
He owned land and started construction of a home that now is owned and occupied by KU Coach Bill Self.

David R. Freeman: Lawrence developer who pleaded guilty to conspiracy to commit bank fraud in relation to land-development bribery case in Junction City. He also, his attorney Carl Cornwell says, provided information to federal prosecutors, IRS and FBI about ticket problems — involving “hundreds of thousands of dollars” in tickets for KU regular-season and tournament games — involving both Kansas Athletics Inc. and the Williams Fund, problems that spurred the KU investigation that led to five resignations of Kansas Athletics personnel. Freeman’s disclosures already had triggered the federal investigations that Cornwell expects to lead to federal charges including theft, money laundering and tax evasion. He owned land and started construction of a home that now is owned and occupied by KU Coach Bill Self.

A Lawrence man whose disclosures to federal investigators led to KU uncovering a theft of nearly 20,000 athletics tickets worth up to $3 million is now in federal custody.

David R. Freeman, 46, will serve an 18-month prison term after being convicted of conspiracy to commit bank fraud. He reported last week to the Federal Correctional Complex in Forrest City, Ark., where he resides in a camp with 300 other minimum-security inmates.

The complex is in eastern Arkansas, a nine-hour drive from Lawrence, just off Interstate 40 between Little Rock, Ark., and Memphis, Tenn.

The complex handles both medium- and minimum-security inmates.

“Mr. Freeman is at the minimum component, also referred to as a camp,” said R.D. Weeks, spokesman for the complex. “Living quarters at the camp are cubicle, meaning dormitory-style housing. … Minimum-security level inmates are screened to ensure that they do not pose a threat to society.”

Freeman was convicted in June 2009, after pleading guilty to conspiracy to commit bank fraud in connection with a bribery scheme involving a Junction City commissioner to land Freeman’s company development contracts worth $12 million.

In connection with a plea agreement, Freeman soon told authorities how he and others schemed to sell Kansas University basketball tickets to brokers. Federal authorities later approached administrators at Kansas Athletics Inc., who in turn eventually asked KU Chancellor Bernadette Gray-Little to order an internal investigation.

That investigation, led by a Wichita-based law firm with assistance from a team of forensic auditors, determined that nearly 20,000 football and basketball tickets had been improperly taken from KU and sold — by five employees of Kansas Athletics Inc. and a sixth working as a consultant — for personal gain.

The KU investigation was limited to regular-season tickets during 2005-2010, the only period that investigators said they could document. Freeman’s disclosures to authorities included information about post-season tickets, reaching back to NCAA Final Fours in Atlanta and New Orleans.

KU officials have acknowledged that the U.S. Attorney’s Office is continuing its own investigation, with input from the IRS and FBI. An investigator for KU’s internal report has suggested that the financial losses detailed by federal investigators likely would push KU’s losses well beyond the $1 million to $3 million outlined in the internal report.

While Freeman received a reduced sentence in exchange for his testimony, he did not escape prison time — something that Freeman’s attorney, Carl Cornwell, hopes to change.

“I’m not going to stop working until I get him out,” Cornwell said.

Comments

whorwe2judge 3 years, 9 months ago

He did the crime and he is now serving his time, Now maybe the LJW will print the rest of the story????...... Let's see if they write about all the other developers in Lawrence that have been involved in all the scams!.......Freeman was not in this alone!......I think they should all be exposed and punished!!.......There's a few other scum bags out there that say and do anything to keep thier names out of the spotlight! .......They want everyone to think the are law abiding citizens, When indeed they have been involved in the "money making scams".......They seem to be all neighbors and for some reason the LJW always reports "NO COMMENT" from those fellows. Hummmmmm wonder who they are paying to keep thier names out of the papers??...........Just wondering???

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cletus26 3 years, 9 months ago

well it's good that he can start doing his time. maybe it is a lesson learned. you can't always get by when doing wrong.

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cletus26 3 years, 9 months ago

well it's good that he can start doing his time. maybe it is a lesson learned. you can't always get by when doing wrong.

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cletus26 3 years, 9 months ago

well it's good that he can start doing his time. maybe it is a lesson learned. you can't always get by when doing wrong.

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oneeye_wilbur 3 years, 9 months ago

Why do we need to be told by the J/W that the place is a nine hour drive from Lawrence? Is someone planning to take a dog crate to the place and do an escape?

What's the point of the driving time? It's only a few minutes across town to the jail and never has the journal world said, Suspect jailed at County Jail, only 15 minutes from Sonic Burger on E. 23rd.

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HogJiver 3 years, 9 months ago

This criminal even looks like a crook.

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okiedave 3 years, 9 months ago

As a showing of public good will and as an act of humility, KU Athletic department should should hand out some free tickets to the low income kids in the community who may otherwise never be allowed to see a high priced KU basketball game.

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JackFrost 3 years, 9 months ago

Why is there an article? Just reading the caption is like plodding through Moby Dick.

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4everahawk 3 years, 9 months ago

g-rock: You're clueless on this whole matter..............if he had not blown the whistle on all the ticket mess, let's see, maybe in a couple of years the loss would be 5 million!!! The corruption needed to cease and it took a crook to make it happen! How ironic is that anyway??? Good chance there were a lot of good people who suspected it was happening, but decided to keep their jobs intact instead.

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blindrabbit 3 years, 9 months ago

swunruh: More Folkes Road speculation; pretty tight group over there!!!

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swunruh 3 years, 9 months ago

Nothing new on Morningstar's involvement?

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Michael Capra 3 years, 9 months ago

I made 4 million in juction city the next day he would say 400 million loud mouth big shot got him

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Ricky_Vaughn 3 years, 9 months ago

The only reason he blew the whistle was to shorten his own sentence...

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blindrabbit 3 years, 9 months ago

rodent: You think that is bad, the LJW continues to use that many years old photo of Corless with that Sh-t Eating Grin.

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rodentgirl16 3 years, 9 months ago

Why does ljworld keep inflating the size of his photo? Yek! Shrink it already! Nobody wants to look at that ugly mug.

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blindrabbit 3 years, 9 months ago

Back in the day I worked with a fellow who had served some time in a Arkansas; minimal security prison. They had him working all summer in the prison garden, primarily tending the several acre okra crop. He indicated the worst part of the sentence was picking okra in the heat and humidity, and soon learned how itchy that crop will make you. Good luck Freeman, keep us posted on the crop success.

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67camille 3 years, 9 months ago

Couldn't happen to a nicer guy! Too bad it's not a longer sentence!

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g_rock 3 years, 9 months ago

Now if he could only be punished for the finger pointing and money that he is costing the KU athletic department......cause like that carp doesn't go on at any other schools....geesh.

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blindrabbit 3 years, 9 months ago

Things are a bit nervous in the Folkes Road neighborhood I'd bet!!

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workinghard 3 years, 9 months ago

Guess he better hope the other two guys from the ticket scandal don't end up there.

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jstthefacts 3 years, 9 months ago

to bad he limited talking freely to KUAC, and not other developers and accomplices.

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KEITHMILES05 3 years, 9 months ago

Good for him talking freely. It has exposed long running scam and corruption at KUAC.

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jstthefacts 3 years, 9 months ago

“I’m not going to stop working until I get him out,” Cornwell said.

Great, it will put a strain having to perpetrate scams from prison, even minimum security. Don't worry Mr. Cornwell, 18 months is just a bump in the road for this scumbag. He will be back at it soon enough.

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nowthetruth 3 years, 9 months ago

Fantastic! Good luck to Mr. Freeman. Karma is going to kick in.........

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coldplay 3 years, 9 months ago

Whatever happened to Ticketgate? Just a slap on the wrist with a scathing report and that's it? If the Feds or local authorities had anything criminal on these guys, it would have come down by now.

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