REMARKS
OF AD GRANT ASHLEY FOR PRESS CONFERENCE ANNOUNCING
INDICTMENTS OF FORMER WESTAR ENERGY EXECUTIVES - 12/4/03
THE INDICTMENT UNSEALED TODAY IS THE RESULT OF AN
INTENSIVE 14-MONTH INVESTIGATION BY SPECIAL AGENTS
OF THE FBI AND IRS TOGETHER WITH THE RESOURCES OF
THE PRESIDENT’S CORPORATE FRAUD TASK FORCE TO
INCLUDE THE SEC.
AS
ALLEGED IN THE INDICTMENT, THE INVESTIGATION DETERMINED
THAT FORMER WESTAR EXECUTIVES DAVID WITTIG AND DOUGLAS
LAKE USED NUMEROUS DECEPTIVE AND FRAUDULENT SCHEMES
TO ULTIMATELY LOOT A PUBLIC COMPANY THEY WERE ENTRUSTED
TO MANAGE. THESE INDIVIDUALS WERE PERSONALLY ENRICHED
BY MORE THAN $32 MILLION DOLLARS THROUGH THEIR SELF-DEALING
SCHEMES.
AS
A CONSEQUENCE OF THEIR ACTIONS, WESTAR INCURRED $3.0
BILLION IN DEBT AND THE SHARE PRICE PLUMMETED FROM
$44.00 TO $9.00 PER SHARE.
IN
MANY OF THE CORPORATE FRAUD CASES THE FBI AND ITS
PARTNERS ARE PURSUING, THE VICTIMS ARE NUMEROUS, INCLUDING
THE SHAREHOLDERS, EMPLOYEES, AND PENSION PLAN INVESTORS.
FURTHERMORE,
CASES INVOLVING SELF ENRICHMENT OFTEN CHEAT THE U.S.
TREASURY AS WELL AS HONEST TAXPAYERS.
THIS INDICTMENT REPRESENTS THE CONTINUED COMMITMENT
OF THE CORPORATE FRAUD TASK FORCE TO PROSECUTE ALL
ASPECTS OF CORPORATE FRAUD.
I
WANT TO THANK THE FBI AGENTS, SUPPORT STAFF, AND CORPORATE
FRAUD TASK FORCE PARTNERS, WHO WORKED TIRELESSLY AND
EFFICIENTLY TO INVESTIGATE THIS CASE IN A TIMELY MANNER.
THE
PARTNERS IN THIS INVESTIGATION INCLUDE THE IRS AND
THE SEC, WHO CONTRIBUTED EXPERTISE FROM THEIR RESPECTIVE
FIELDS TO GREATLY ENHANCE THE THOROUGHNESS OF THIS
INVESTIGATION.
I
ALSO WANT TO THANK ASSISTANT ATTORNEY GENERAL CHRIS
WRAY, ACTING DEPUTY ATTORNEY GENERAL JIM COMEY, U.S.
ATTORNEY ERIC MELGREN, ASSISTANT U.S ATTORNEY RICHARD
HATHAWAY, AND COMMISSIONER MARK EVERSON OF THE INTERNAL
REVENUE SERVICE, WHO IS HERE TODAY.
FINALLY,
AN OVERVIEW OF THE CORPORATE FRAUD PROBLEM, AT THE
PRESENT TIME, THE FBI IS INVESTIGATING 146 LARGE SCALE,
HIGH PROFILE, AND HIGH LOSS CASES.
THE FBI IS OPENING 3 TO 6 NEW HIGH PROFILE CORPORATE
FRAUD CASES A MONTH. TO DATE THERE HAVE BEEN 195 INDICTMENTS
AND 107 CONVICTIONS IN THESE MAJOR CORPORATE FRAUD
INVESTIGATIONS.
IN
ADDITION, THE FBI IS INVESTIGATING IN EXCESS OF 1200
CASES, WHICH INVOLVE SECURITIES FRAUD THAT ARE SMALLER
IN LOSS AMOUNT, BUT NONE-THE-LESS SIGNIFICANT TO THE
SHAREHOLDERS AND EMPLOYEES OF THOSE CORPORATIONS.
