Feds want limits placed on Wittig

? Prosecutors are asking a federal judge to reimpose limits on how former Westar Energy Inc. chief executive David Wittig can shuffle his assets.

In court documents filed this week, prosecutors asked U.S. District Judge Julie Robinson to reinstate restraining orders that would prevent Westar from paying millions of dollars in legal fees for the attorneys of Wittig and his co-defendant, former chief strategy officer Douglas Lake, and force Wittig to make regular reports to the court on the status of his assets.

Wittig, who at one time listed $31.7 million in assets, now says he has none, prosecutors said in their filing.

Wittig and Lake were convicted in September 2005 of conspiracy, wire fraud, money laundering and circumvention of internal controls in a series of schemes aimed at “looting” millions of dollars in additional salary and benefits from Westar. A federal appeals court overturned the convictions on Jan. 5.

The appeals court ruled that the two couldn’t be retried on the wire fraud and money laundering charges, but could still face one count each of conspiracy. Wittig could face 14 counts of circumventing internal controls while Lake could face 13 counts.

Jim Cross, spokesman for the U.S. attorney’s office, said a decision hasn’t been reached on whether to retry the men.

In the meantime, however, prosecutors said they want to prevent Wittig from being able to sell off or otherwise hide assets, which could be seized later as restitution.

Prosecutors said they want regular accounting reports from Wittig, including his own accounts and those held by his wife and their children.

Wittig served more than a year in federal prison after Robinson determined in January 2006 that he had violated an earlier order prohibiting him from divesting or transferring assets without court approval.

She rescinded the restraining orders when Wittig agreed in July to forfeit more than $7 million. One of Wittig’s defense attorneys, Jeff Morris, has asked prosecutors to return the money, now that the convictions are overturned.

Wittig was released from prison Feb. 12 while he appeals a two-year sentence in an unrelated bank fraud case. Prosecutors said in their filing this week that he told parole officers that he no longer had any assets.

“He has signaled his continuing contempt of this court’s orders and his intention to continue with this sham and artificially created indigence to thwart the will of this court,” the prosecutors wrote.