Energy boss, bank president accused of fraud over loan for Arizona real estate deal

<br>TOPEKA, Kan. (AP) _ The top executive at Kansas' largest electric company and the former president of a Topeka bank have been indicted on federal fraud charges over a $1.5 million loan for an Arizona

Thursday, November 7th 2002, 12:00 am

By: News On 6

TOPEKA, Kan. (AP) _ The top executive at Kansas' largest electric company and the former president of a Topeka bank have been indicted on federal fraud charges over a $1.5 million loan for an Arizona real estate deal.

U.S. Attorney Eric Melgren announced the charges Thursday and said there were no indications the indictment involved Westar Energy Inc.'s business matters. Still, the New York Stock Exchange suspended trading of company stock.

The charges against David Wittig, 47, Westar's chairman, president and chief executive officer, include submitting false entries, conspiracy and money laundering. Indicted on the same charges was Clinton Odell Weidner II, 49, the former president of the Capital City Bank.

The charges stem from Weidner's decision in April 2001 to increase Wittig's line of credit at the bank.

Prosecutors say Weidner proposed a real estate venture in Scottsdale, Ariz., that required a $1.5 million downpayment. According to the indictment, Wittig agreed to make a loan in the same amount if Weidner would increase Wittig's credit.

The indictment accuses the two men of trying to conceal the deal.