To be a good person, you need two things: think positively and only speak the truth. I've no idea how this got stuck in Freddie's head, but it's not working in the Wasteland.
Townsfolk chatter hints that the real problems began when Freddie won a local tournament. This time the haters were really pissed off, they smashed his armored car and even beat Freddie himself. And that wasn't enough for them — they doused the poor guy with acid.
The people in the Valley are savvy: no one believed that Freddie would make it out alive, so they took all the stuff he left behind. Just taking as much as they could on their own backs. And believe it or not, Freddie came round. He took his belongings back and gave the Valley-folk a hint that taking someone else's things before they're really dead isn't very good. He explained as well as he could, and those lucky enough to escape alive are going to remember Freddie's arguments for a very long time.
And then came the turn of the offenders from the tournament. Freddie started a gang and showered them with kind words. Since then, everyone in the Valley keeps well away from good men — who'd want to contract this damn honesty of theirs!