Gun Found as Investor Goes to Court Over J. David

A former investor in J. David & Co., on his way to a lawsuit settlement conference before a U.S. magistrate, was arrested Friday after allegedly bringing a concealed, loaded handgun into the federal courthouse in downtown San Diego.

Authorities later said that Nicholas Valentino, 39, a La Jolla real estate developer, did not have a permit to carry the gun and that the weapon had been reported stolen in New Jersey.

Valentino was charged with misconduct on federal property, a misdemeanor, and with making false statements to a federal agent, a felony.

About 3:30 p.m. Friday, federal marshals saw the outline of a gun in Valentino’s briefcase as it passed through an X-ray machine during a routine inspection in the foyer of the federal courthouse.

Authorities opened the briefcase and found a loaded .25-caliber automatic pistol and $1,400 in cash inside.

A sign posted just inside the courthouse states that bringing weapons or firearms into the building is prohibited.

Valentino was charged with misconduct on federal property.

As he was being read his rights, Valentino interrupted the U.S. marshal and said: “I don’t know what the big deal is, I have a permit for it,” according to a complaint filed in court late Friday.

Authorities ran a computer check and found that Valentino does not have a gun permit.

He was then charged with making false statements to a federal agent, which is punishable by five years in prison and a fine of $250,000.

At Valentino’s bail hearing before U.S. Magistrate Barry Ted Moskowitz on Friday evening, Assistant U.S. Atty. Kevin McInerney said that that the weapon had been reported stolen in New Jersey.

Valentino was released Friday night on a $100,000 personal appearance bond.

The incident began after Valentino parked his white 1969 Rolls-Royce convertible in a loading zone in front of the courthouse. Valentino had arrived to discuss a lawsuit filed against him by the J. David & Co. bankruptcy trustee. U.S. Magistrate Harry McCue and the trustee, Louis Metzger, were waiting for Valentino in McCue’s chambers.

According to Metzger’s lawsuit, Valentino received $211,000 from J. David within 90 days of the fraudulent La Jolla investment firm’s bankruptcy in February, 1984. Bankruptcy law defines such payments as “preferences,” and they are supposed to be returned to the bankruptcy trustee.

Many J. David investors have balked at returning such preference payments, which total more than $25 million.

According to sources familiar with the J. David case, Valentino and Metzger were close to reaching a settlement.

Valentino’s brother is Patrick Frega, an attorney for several other former J. David investors in lawsuits filed against the legal and accounting firms that once represented the company.