San Diego

An accountant and a bankruptcy trustee took the witness stand Wednesday as the prosecution began its case against Nancy Hoover Hunter, who is on trial on charges stemming from her role as a top executive of the fraud-ridden J. David & Co. investment firm.

Earl Cantos, a retired Municipal Court judge who served as a Bankruptcy Court trustee in the days after J. David’s collapse in February, 1984, testified that he made several attempts to elicit the cooperation of J. David (Jerry) Dominelli, the firm’s head, but got only empty promises.

On one occasion several days after investors forced the firm into bankruptcy court, Cantos drove to the Rancho Santa Fe home shared by Dominelli and Hoover and was invited in. He said he spoke privately with Dominelli and, on cross-examination, said he saw Hunter only briefly that night when she entered the room to offer him a soft drink.

Hunter’s attorneys are attempting to convince the jury that Dominelli was responsible for the fraud committed by the firm and that she was unaware of his illegal activity.

Investors lost about $80 million in the huge Ponzi scheme.

Also testifying Wednesday was George Kilcrease, an auditor with Touche Ross & Co., the accounting firm that was called in to take charge of J. David’s records after the firm’s collapse. The records in J. David’s La Jolla office were in such disarray that it took a team of auditors months to unscramble them, Kilcrease said. His testimony continues today in federal court.