Tuesday, December 2, 1997
Section: LOCAL & STATE
Page: 9A
By Joe Rodriguez, The Wichita Eagle
The Rev. David Brace will be back on trial next year.
This time, he will face state charges that allege he committed securities fraud in connection with the sale of church bonds - actions the state says cost investors millions of dollars when his enterprise failed.
Brace was convicted of unrelated federal money-laundering charges in 1995, but that conviction was overturned.
Sedgwick County District Court Judge Paul Clark ruled Monday that there was enough evidence presented during the preliminary hearing for Brace, pastor at the former Faith Metro Church, to stand trial on the securities fraud charges and other charges.
Brace's wife, Tammie, and John Lawn, a real estate appraiser, were also bound over for trial.
All three defendants pleaded not guilty. Clark set March 9 as a trial date.
Clark's decision came Monday after nearly three hours of closing arguments. David Brace's attorneys brought up several points - ranging from the lack of evidence against their client to the fact that he was never properly identified in court - to try to get charges dismissed.
The judge's decision brought an end to the preliminary hearing that began Aug. 18. It was interrupted several times because of lawyers' scheduling conflicts.
A fourth defendant, Dale Briant "Tuck" Willson, a former Faith Metro employee, had waived his preliminary hearing.
Prosecutor Roger Walter, general counsel for the Office of the Kansas Securities Commissioner, said his intention was to try all four at the same time.
Each defendant faces slightly different charges, stemming from a two-year investigation by the Office of the Kansas Securities Commissioner into the financial dealings of David Brace, Faith Metro Church and New Life Fellowship Inc., the legal entity that handled business for the church.
David Brace is accused of two counts of securities fraud for the sale of church bonds. He's also charged with one count of securities fraud and one count of selling unregistered securities in connection with the sale of promissory notes.
Tammie Brace is charged with two counts of securities fraud for the sale of church bonds.
Lawn faces two counts of securities fraud in connection with property appraisals he prepared for the sale of church bonds.
And Willson is charged with one count of securities fraud and one count of selling unregistered securities or sale of unregistered securities in connection with the sale of promissory notes.
The charges that David Brace faces are unrelated to federal money-laundering charges he faced in San Antonio. He was convicted of those charges in December 1995. The verdict, however, was overturned earlier this year by the 5th Circuit Court of Appeals on the grounds that Brace had been entrapped and enticed into committing acts that he would not have committed on his own. Federal prosecutors are appealing that decision.
Joe Rodriguez can be reached at 268-6644 or jrodriguez@wichitaeagle.com.
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