Feds seek freeze on Wittig’s assets until trial

? Prosecutors have asked a federal judge to keep a settlement agreement in force against David Wittig pending the third trial of the former Westar Energy Inc. executive on charges that he tried to loot the utility of millions of dollars.

In a document filed Friday, federal prosecutors asked that a settlement agreement, which includes a $7.017 million payment by Wittig’s wife, Beth, to the federal government, remain in full force.

That filing was a response to one in March by Wittig’s attorneys asking District Judge Julie A. Robinson not to reinstate a restraining order to block Wittig from disbursing his funds.

Wittig, 51, of Topeka, former Westar chief executive officer, president and chairman of the board of directors, will be retried on 14 charges of circumvention of internal financial controls and one conspiracy charge.

Former Westar Chief Strategy Officer Douglas Lake, 56, of New Canaan, Conn., will be retried on 13 charges of circumvention of internal financial controls and one conspiracy charge.

Their third trial will start Jan. 14. The first trial ended in a mistrial. In a second trial, the two were convicted of conspiracy, wire fraud, money laundering and circumventing internal controls. However, the 10th U.S. Circuit Court of Appeals in Denver overturned those convictions and said the most serious charges of fraud and money laundering couldn’t be retried.

Prosecutors allege Wittig and Lake used a complex web of schemes to inflate their compensation until being forced out of Westar in late 2002.

Robinson had issued orders restraining Wittig’s assets, but those orders were rescinded in July 2006, after Wittig forfeited $7.017 million to the federal government as part of his convictions.

After Wittig’s convictions were overturned, his attorney, Jeff Morris, asked that the money be returned.

On Friday, prosecutors asked Robinson to reimpose the restraining orders.

“The restraining orders are necessary to protect the victim, Westar, from further dissipation of assets that would constitute restitution in the future,” prosecutors wrote.

Prosecutors contend the Wittigs shifted their jointly held wealth to Beth Wittig so David Wittig could “begin claiming financial hardship.”

For example, David Wittig said he couldn’t pay a $1 million fine imposed on him in a separate federal bank conspiracy conviction because he didn’t have the money, prosecutors wrote.

Prosecutors and defense attorneys will argue during a motion hearing Wednesday whether the judge should reinstate the restraining order and the status of forfeited $7.017 million.