San Diego

A construction contractor who worked for the J. David & Co. investment firm testified as a prosecution witness Thursday about the “chaotic” night in 1984 when he helped stuff large trash bags with the firm’s documents to keep them from bankruptcy court officials and other investigators.

Parin Columna, who did extensive remodeling work for the firm, told the jury at Nancy Hoover Hunter’s fraud trial that he filled his van with the “lawn-size” bags on Feb. 9, 1984, and stored them in a garage. Hunter, a top executive at the firm; J. David (Jerry) Dominelli, the firm’s head, and other employees were present and helped fill the bags, he said.

Investors who became nervous when the firm’s checks began to bounce forced J. David & Co. into bankruptcy four days later. Dominelli is serving a 20-year prison term, and Hunter is on trial on charges of fraud, conspiracy and income tax evasion stemming from her alleged involvement in the huge Ponzi scheme, in which investors lost $80 million.

Columna said he and Hunter believed in Dominelli until the end and thought he was a legitimate businessman. He testified that he and Hunter persuaded Dominelli to permit them to turn over some of the trash bags to the U. S. attorney’s office.

However, he also testified that he did not turn over three bags full of records and said Hunter was aware that the bags had been withheld. He said he and Hunter were having breakfast at a Del Mar restaurant around the time of the firm’s collapse and were approached by Dominelli’s driver, who instructed them that Dominelli wanted the three bags to be taken to his home in Rancho Santa Fe.

Columna said he carried out the order and that Hunter, who was aware of the plan, did not try to intervene or suggest that the documents be turned over to prosecutors.

Columna said both he and Hunter believed that Dominelli wanted to preserve the records in order to help his clients.