Judge Allows Convicted Criminal to Stay in Reburbished Mansion

U.S. District Judge Julie Robinson will allow convicted former utility chief, David Wittig, to stay in his refurbished mansion, saying the the state had failed to provide a direct tie between Wittig’s fraudulent schemes and his purchase of the historic Alf Landon Mansion.

David Wittig, the former Westar Energy Inc.chief executive, and his former chief strategy officer, Douglas Lake, were convicted of looting the utility by a Kansas jury and were directed to forfeit millions of dollars in stock, insurance payments, incentive bonuses and other assets to their crimes. However Wittig will be allowed to keep the historic mansion and its contents which inlcude $282,500 in audio/video equipment and a $15,000 pool table, an Associated Press story confirmed.

The judge did say Wittig will have to forfeit $4 million connected to the value of the renovations Wittig made to the mansion with a line of credit that used Westar stock and other collateral tied to Wittig’s fraud. Wittig is said to have invested $6.5 million in the mansion and hoped to recoup the money through a provision in his employment agreement with Westar that required the firm to buy the mansion and include the value of all renovations, plus 17 percent, if the utility was sold.

Wittig and Lake were found guilt Sept.12, 2005 of consipiracy, wire fraud, money laundering and circumventing internal controls during their employment at Westar, the largest electric utility in Kansas. Both are expected to be sentenced in April.

Topics Fraud Legislation