Guilty Plea In Junction City Federal Fraud Case
KSAL Staff - September 14, 2013 8:28 am
A Kansas couple was sentenced to three years of probation for laundering millions of dollars in suspected drug money through their small town bank.
A Topeka man faces sentencing in December after pleading guilty to bank fraud in connection with plans to build an apartment complex in Junction City.
The U.S. Attorney’s office said Friday that 52-year-old John Wyatt Duncan Jr. entered the pleas this week to two counts of bank fraud, one count of money laundering and one count of making false statements.
Duncan was accused of lying to a Lawrence bank to get a $15.2 million construction loan for his company, Blue Jay Properties, to develop the Quinton Pointe Apartments in Junction City.
Duncan was also chief financial officer of Schmidt Builders. Prosecutors said Duncan falsely claimed that lumber for the project had been paid in full and was being held at Schmidts, available as collateral for the loan.