Third Wittig trial to begin in January

? The third trial of former Westar Energy Inc. CEO David Wittig and Chief Strategy Officer Douglas Lake on charges they tried to loot the state’s largest electric utility will begin Jan. 14, a federal judge ruled Monday.

U.S. District Judge Julie Robinson also scheduled a hearing later this month to determine what should happen to $7 million that Wittig forfeited to the government after being convicted two years ago for conspiracy, wire fraud, money laundering and circumventing internal controls.

The 10th U.S. Circuit Court of Appeals in January threw out those convictions, as well as those against Lake, and said the most serious charges of fraud and money laundering couldn’t be retried.

Wittig, of Topeka, will face one count of conspiracy and 14 counts of circumventing internal financial controls. Lake, of New Canaan, Conn., will face the conspiracy charge and 13 circumventing counts identical to Wittig’s.

Neither man was present during the hearing Monday.

Assistant U.S. Attorney Richard Hathaway said even without the more serious charges, he expected the trial would take 10 to 12 weeks because of the complex web of alleged schemes he accuses Wittig and Lake of using to inflate their compensation until being forced out of Westar in late 2002.

Both sides continued to fight Monday over $7 million that Wittig forfeited to the government as part of his sentence.

Because some of the assets were partially owned by Wittig’s wife, Beth, she negotiated a settlement with the government last year, agreeing to give up alternative assets.

The money was returned last week in a check issued to David Wittig, his wife and their defense attorney, Jeff Morris. Morris said Hathaway then sent him an e-mail saying the check would void Beth Wittig’s settlement agreement.

Hathaway said Monday that he worried David and Beth Wittig were trying to confuse authorities over who owned assets and where – David Wittig has argued in the past that he had no assets, having transferred some of them to his wife.

“This money is a shell game, and the court needs to be fully notified as to what’s going on,” Hathaway said.

But Morris denied any ulterior motive, arguing that the government had no legal right to hold the money, given that David Wittig’s convictions have been overturned. He said he agreed to hold the money in an escrow account until the case reaches a final determination and wanted the money paid only to him or David Wittig.

Robinson said she would rule on the matter later.