Wittig, Weidner guilty
Ex-Westar CEO, banker could get 135 years in prison
KANSAS CITY, KAN. ? Former Westar Energy Inc. chief David Wittig and his Topeka banker each face up to 135 years in prison after a federal jury found them guilty Monday of conspiracy, bank fraud and money laundering.
Wittig’s co-defendant, Topeka banker Clinton Odell Weidner II, pleaded guilty to two counts of making false bank entries before the trial began two weeks ago. On Monday, the jury also found him guilty of one count of money laundering, one count of conspiracy and two counts of making false bank entries.
The jury found Wittig guilty of all six counts. The jury later ordered Weidner to forfeit his share of an Arizona real estate project at the center of the case.
Both men were ordered to surrender their passports, request permission for any travel and to return to the court Oct. 20 for sentencing.
“Any attempts to falsify … filings or reports, or to mislead or deceive bank officers or regulators, will be dealt with aggressively by federal investigators and the U.S. Attorney’s Office,” Eric Melgren, the U.S. attorney for Kansas, said in a statement.
Assistant U.S. Atty. Richard Hathaway, who tried the case, declined to comment after the verdict was read. U.S. marshals said members of the jury did not want to speak to reporters.
Wittig, the former chief executive of the state’s largest electric utility, turned white as the verdicts were read shortly before 5 p.m. Monday in U.S. District Court. Wittig did not testify during his trial and his attorneys did not call a single witness in his defense, saying the government presented no evidence that Wittig knew of, or helped plan, Weidner’s falsification of bank documents.
“Obviously, we’re disappointed in the outcome,” said Jim Eisenbrandt, Wittig’s attorney.
Eisenbrandt said he planned to file postconviction motions seeking a new trial or an acquittal, and if they fail, an appeal. Pedro Irigonegaray, Weidner’s attorney, said he also planned to appeal the jury’s verdict.
A questionable loan
The case centered on two transactions April 30, 2001, at Topeka’s Capital City Bank, where Weidner was president as well as Wittig’s personal loan officer.
First, Wittig’s personal credit line was increased — at his request and on Weidner’s recommendation — by $1.5 million. Hours later, $1.5 million was transferred from Wittig’s Capital City account into an Arizona real estate project in which Weidner was investing.
The government said Wittig loaned Weidner the $1.5 million in return for his help in making $20 million worth of bank loans available to Westar executives. Prosecutors said the executives, including Wittig, wanted the money to buy stock in a company Wittig intended to create from Westar assets. State energy regulators blocked the creation of the spinoff company.
None of the charges against Wittig were directly related to Westar business.
Apologies for Wittig
During nearly two days of testimony last week, Weidner repeatedly acknowledged falsifying two bank documents related to the loan from Wittig. But he insisted Wittig knew nothing about his actions. He called the government’s claim the two men conspired “absurd” and apologized from the stand to Wittig for the trouble his actions had caused.
Weidner contended he expected the loan to come from one of Wittig’s accounts at a different bank. Federal regulations and his bank’s policy prevented him from borrowing the money from Capital City.
Weidner said his administrative assistant, Christy Gurney, mistakenly wired the money to the Arizona real estate project without his knowledge or instructions. He admitted that when he found out about the transaction, he decided to try to cover it up, rather than bringing it to the attention of bank officers.
Weidner’s two attorneys argued in closing statements Friday the government had not come close to making its case against the two men. Irigonegaray said the government brought the case out of a desire to bring down Wittig, a wealthy and once-powerful man who left Westar last year amid controversy. The company currently is trying to force Wittig and another former executive to repay millions in compensation.
Hathaway told the jury that a series of bank activities he had detailed during the trial, in addition to Gurney’s testimony, proved the two men conspired. He also said the defense’s entire case rested on Weidner’s testimony.




