Former Westar CEO Gets 18 Years in Prison
Former Westar Energy Inc. CEO David Wittig was sentenced to 18 years in prison on April 3 for looting millions from the Topeka, Kansas, U.S., utility. Co-defendant Douglas Lake, former executive vice president for Westar, received a 15-year sentence. In addition to their sentences, Wittig must pay US$14.5 million and Lake must pay $2.875 million in restitution to Westar, and both men must pay $5 million in fines. Their attorneys said they will appeal.
Wittig was convicted of 39 counts, while Lake was convicted of 30 counts and acquitted of nine. The two men were found guilty in September 2005 of conspiracy, wire fraud, money laundering and circumventing internal controls in their positions at Westar.
In addition to using company airplanes for family travel, Wittig and Lake influenced Westar's board to invest in companies the men had a conflict of interest in. They also convinced the board to sell Westar's regulated utilities so they could spin off a series of Westar subsidiaries to a new, debt-free business they would operate. Ultimately, the spin-off was denied by the Kansas Corporation Commission.
Wittig has been serving federal prison time since January on a separate bank fraud conviction, in which his bond was revoked because he violated the terms of his release. He will be sentenced for that charge on April 24.
Want to use this article? Click here for options!
© 2008 Penton Media Inc.














