Nancy Hoover Hunter’s initials appeared at the bottom of several monthly account statements an Escondido man received from the J. David & Co. investment firm, the man testified Tuesday in Hunter’s fraud and tax-evasion trial.
Harvey Rosenberg, who at first invested $10,000 in a J. David limited partnership, said he received two statements for May, 1981, because corrections were made to the figures.
Rosenberg, who testified he never had any contact with Hunter, said he spoke with Jerry Dominelli and received copies of Dominelli’s trading records before investing in December, 1980.
Dominelli “mentioned he did a combination of investing in commodities and safe investments” like bonds, Rosenberg said.
Dominelli said he could invest any amount because investor funds were pooled into one large account that would be used to purchase commodities, Rosenberg testified.
Rosenberg said Dominelli personally called him to say the Securities and Exchange Commission had intervened in J. David because of trading irregularities. Dominelli then offered to return all his investment with interest, Rosenberg said.
Under cross-examination by defense attorney Richard Brewer Jr., Rosenberg said he interpreted the SEC’s findings as a “technical violation.”
Rosenberg testified as part of the federal prosecutors’ case against Hunter, which alleges that she played an active role in the J. David & Co. Ponzi scheme, which defrauded 1,500 investors out of $80 million.
The defense maintains that Hunter did not know about Dominelli’s fraudulent activities because she was blinded by love for the man many considered to be a genius trader.
Rosenberg is one of about 100 investors who have testified in the trial, which began in April. Prosecutors have said they hope to rest their case at the end of the month, but the trial is expected to continue until October.
Testimony is expected today from Debra Hart, who was Dominelli’s personal secretary and one of his entourage who fled to Montserrat in the West Indies after the fall of J. David in February, 1984.