McDougal’s Defense Set to Take the Stage

After 23 days, 141 exhibits containing thousands of pages of documents and testimony from about 20 witnesses, the embezzlement case against Susan McDougal has come down to McDougal’s word against that of her former employer, socialite Nancy Mehta.

The two courtroom adversaries once were friends. But neither acknowledged the other during Nancy Mehta’s seven days on the witness stand in the embezzlement trial that grew from her accusations against McDougal, her former personal assistant.

Now, it’s McDougal’s turn.

The prosecution rested its case Monday. And the defense, after asking the judge to dismiss the charges for insufficient evidence--standard procedure at this stage in a criminal case--expects to launch its case today.

The prosecution case, which relied heavily on the testimony of Mehta, wife of conductor Zubin Mehta, lasted five weeks--two weeks longer than attorneys originally estimated the entire trial would take.

Much of the time--12 days in all--was consumed by detailed cross-examination of Mehta and police Det. Ignacio Gonzalez, who testified about pages upon pages of credit card receipts, allegedly forged checks and computer printouts concerning the wealthy Brentwood couple’s finances.

The prosecution’s case also has featured occasional glimpses into the Mehtas’ lavish, globe-trotting lifestyle--including testimony that Nancy Mehta spent tens of thousands of dollars flying her assistants, her pet borzoi and even a favored Los Angeles plumber halfway around the world. She also put a cousin through law school and paid for her $100,000 wedding.

McDougal’s mood was visibly lightened, and her mother and sister joined her at the Santa Monica courthouse Monday as the focus of the case shifted from prosecution to defense. Defense attorney Mark Geragos has told jurors that McDougal will testify in her own defense.

The defense case is expected to last about a week. Its highlight will be testimony from McDougal and her fiance, Eugene “Pat” Harris, who briefly worked for the Mehtas.

McDougal, 43, is charged with a dozen counts of grand theft, forgery, credit card fraud and failing to file state income tax returns. The Superior Court case in Santa Monica is not related to the Whitewater investigation, which brought notoriety to McDougal when she chose to go to jail rather than tell a grand jury about her business dealings with Bill and Hillary Rodham Clinton, her former partners in an Arkansas land deal.

Prosecutor Jeffrey Semow charges that McDougal forged Nancy Mehta’s signature to fraudulently obtain a bank credit card on which she charged about $90,000 worth of personal expenses. She also is accused of taking an additional $60,000 by using Mehta’s checks without permission.

McDougal worked for the Mehtas from 1989 to 1992--after she had left Arkansas but before the Whitewater scandal made hers a household name. Initially, she took over Harris’ job managing the Mehtas’ five Westside rental properties. Eventually, she also took over the bookkeeping duties.

Mehta testified that she was oblivious to the alleged theft until a bank official contacted her in mid-1992 while she was traveling in Europe. By summer’s end, she and McDougal had parted company.

The defense contends that the transactions in dispute either were authorized by Mehta or were expenses McDougal used to compensate herself for her bookkeeping duties under her arrangement with the Mehtas.