San Diego

Former San Diego Mayor Roger Hedgecock will be called Tuesday to testify in the Nancy Hoover Hunter fraud and tax evasion trial in federal court as Hoover’s attorneys begin to mount their defense in the complex case.

Hedgecock, who was forced from office after being convicted in a campaign-funding scheme, will testify about the legitimacy of Tom Shepard & Associates, the firm that managed his 1983 mayoral campaign, according to defense attorney Richard Marmaro.

As part of the government’s case against Hunter, prosecutors allege that losses she claimed on her 1983 tax return, after investing about $190,000 in the consulting firm, were fraudulent because Tom Shepard & Associates was set up as a “sham company” to illegally finance Hedgecock’s campaign.

Tom Shepard testified that he ran a legitimate business.

Marmaro said that Hedgecock, who is appealing his conviction, is expected to testify that he never attended any meetings with the Shepard firm at which the issue of financing his campaign was discussed.

But Assistant U. S. Atty. Stephen Clark, who will be cross-examining Hedgecock, told Judge Earl B. Gilliam that, if Hedgecock makes that assertion, he will “impeach Mr. Hedgecock with everything available, including the kitchen sink if it’s allowed under the rules.”

The right to avoid self-incrimination and the issue of immunity for Hedgecock, because his case is being appealed to the California Supreme Court, will be discussed by attorneys Tuesday morning.

When the defense phase of the 5-month-old trial begins, Hunter’s attorneys will be defending her against 37 fewer charges. Prosecutors succeeded Friday in having a motion granted to have the counts dropped from the 234-count indictment.

During a motions hearing Friday after the last prosecution witness left the stand, Assistant U. S. Atty. Gay Hugo read a list of the charges the government wanted dropped, and Gilliam granted her request.

Most of the charges dropped alleged that Hunter participated in mail fraud by sending to investors either false monthly statements of their accounts or inaccurate records purporting to document the success of her former lover, J. David (Jerry) Dominelli.

But one of the charges dropped was aiding and abetting in the preparation and presentation of a false tax return for one of the J. David commodities partnerships.

Prosecutors allege that Hunter was a knowing partner in the giant J. David & Co. fraud, which bilked about 1,200 people out of nearly $90 million. Dominelli is serving time in federal prison.