Archive for Wednesday, November 20, 2002

Indictment details allegations against Wittig, Topeka banker

November 20, 2002

Advertisement

— Here's a look at the allegations contained in the federal grand jury indictment against David Wittig and Clinton Odell Weidner II.

The transactions

On April 3, 2001, Weidner approached Wittig about making a $1.5 million investment in the Eagle Ridge project, an exclusive housing subdivision under development outside Scottsdale, Ariz.

Wittig agreed to loan the $1.5 million to Weidner if Weidner would get Wittig's line of credit at Capital City Bank increased from $3.5 million to $5 million.

On April 30, Weidner prepared a loan proposal. The money ended up as a down payment for the Eagle Ridge project, in which Weidner obtained a 50 percent interest.

Count 1

Charge: Conspiracy.

Allegation: Wittig and Weidner conspired to submit false documents, misapply bank funds and launder money.

Count 2

Charge: Making false bank entries, reports and transactions to a federally insured bank.

Allegation: In an April 30, 2001, loan proposal to Capital City Bank, Wittig and Weidner included a statement that suggested Wittig would use the increase in his credit line to purchase stock, make business investments and complete renovations of his home, when both knew the money would wind up in the Eagle Ridge project.

Count 3

Charge: Misapplication of bank credits.

Allegation: Wittig and Weidner cause the $1.5 million loan to Wittig to be misapplied to the Eagle Ridge project.

Count 4

Charge: Making false bank entries.

Allegation: Wittig and Weidner caused the filing of an officer's questionnaire with Capital City Bank, signed by Weidner on May 14, 2001, that failed to disclose that the loan to Wittig would benefit Weidner.

Count 5

Charge: Making false bank entries.

Allegation: Wittig and Weidner caused to be filed with Capital City on May 31, 2001, a personal financial statement for Weidner that failed to disclose the $1.5 million loan.

Count 6

Charge: Charge: Making false bank entries.

Allegation: Wittig and Weidner caused to be filed with Capital City on Jan. 11, 2002, a balance sheet for Wittig that concealed his loan to Weidner and its connection to his credit line.

Count 7

Charge: Money laundering.

Allegation: Wittig and Weidner engaged in a monetary transaction affecting interstate commerce in criminally derived property worth more than $10,000.

Count 8

Allegation: Wittig and Weidner are required to forfeit to the federal government $1.5 million in cash and two parcels of land near Scottsdale, Ariz., or property of an equal value.

Commenting has been disabled for this item.