Court Told of Hedgecock Financial Woes

Mayor Roger Hedgecock “campaigned nearly full time” for the city’s top office for years, and that zeal sparked a scheme to illegally funnel almost $360,000 to his 1983 mayoral campaign, a prosecutor said Monday as Hedgecock’s conspiracy and perjury trial drew to a close.

In his closing arguments, Assistant Dist. Atty. Richard Huffman told a packed courtroom that Hedgecock’s campaign began “running into money problems” by 1981.

Hedgecock, who was elected in 1983 to serve out the unexpired term of Mayor Pete Wilson after Wilson ascended to the U.S. Senate, easily won election to a full four-year term in November despite the pending criminal indictment against him.

However, under city law, he would be removed from office if found guilty of any of the 12 counts of perjury or one count of conspiracy with which he is charged. Such an ouster would take effect when the judgment was officially entered, presumably at the time of sentencing. He could be sentenced to a maximum of four years in prison on each of the perjury counts and three years on the conspiracy count.

Others in Alleged Scheme

Closing arguments were expected to be concluded this afternoon, after which Superior Court Judge William Todd will instruct the 12-person jury and deliberations will begin.

Hedgecock is accused of participating in the illegal campaign contribution scheme with jailed financier J. David Dominelli, founder of the now-bankrupt J. David & Co. investment firm; Nancy Hoover, Dominelli’s business partner and girlfriend; and Tom Shepard, Hedgecock’s former political consultant.

Prosecutors allege that Dominelli and Hoover laundered funds to Hedgecock through Shepard’s consulting firm. Dominelli, Hoover and Shepard face trials on related charges later this year.

The mayor has pleaded innocent and claimed that he was a victim of a vendetta by Dist. Atty. Edwin Miller, a longtime political foe.

However, Huffman said in his summation that Hedgecock had begun seeking support for a mayoral bid after first becoming a San Diego County supervisor in November, 1976.

Faced Money Problems

“This candidate (Hedgecock) has campaigned nearly full time since he was elected for the first time, and that takes money,” the prosecutor said. “By the summer and fall of 1981, the Roger Hedgecock election committee was running into money problems.”

Prosecutors claim that Dominelli’s company entered the picture about that time, and Huffman said it was the company’s collapse that led to the charges against Hedgecock. J. David & Co. was forced into involuntary bankruptcy last year, and Dominelli was jailed on charges of defrauding investors of more than $60 million on the international money trading market.

“When the house of cards that was the J. David company came crashing down, it pulled the cover off the defendant in this case,” Huffman said.

Hedgecock took the stand in his own defense during the trial, which began Dec. 3, and repeatedly denied any wrongdoing. He admitted making mistakes on some of his campaign disclosure forms, but, he said, they were unintentional and he was not trying to hide anything.