Wiederhorn, 39, claims in a petition filed in U.S. District Court that staff members at the Federal Prison Camp at Sheridan have refused to provide his requested treatment for a medical problem.
Wiederhorn asked that the U.S. Bureau of Prisons transfer him to a community treatment center in Portland or to confinement at his home.
Sheridan personnel have declined to allow Wiederhorn his preferred treatment despite the recommendation and support of Wiederhorn's physician as well as the prison's medical staff, Wiederhorn claims in the court documents.
Specifics of Wiederhorn's illness were redacted from public court documents, but the Portland executive is known to have diabetes.
Sheridan officials declined comment when reached by The Oregonian, citing privacy reasons.
Wiederhorn began serving an 18-month sentence Aug. 2 for his role in the Capital Consultants investment scandal. He pleaded guilty to filing a false tax return and paying an illegal gratuity to Jeffrey Grayson, former CEO of Capital Consultants. As part of his plea agreement, Wiederhorn agreed to pay $2 million in restitution.
Following the plea hearing, Fog Cutter Capital Group, Wiederhorn's company, agreed to pay him a $2 million bonus. Between the bonus and his regular salary, Fog Cutter could pay Wiederhorn as much as $4.8 million during his prison term, the company has disclosed in Securities and Exchange Commission documents.
Capital Consultants' collapse in September 2000 cost the firm's clients hundreds of millions of dollars and set off a criminal investigation that led to charges against 11 people.
Grayson pleaded guilty to fraud charges in 2002, but his poor health prevented him from serving time in prison.
(Copyright 2005 by The Associated Press. All Rights Reserved.)