LEXINGTON, S.C. (AP) -- Prosecutors say former HomeGold Financial Inc. chairman Jack Sterling knew his company was heading into ruin and intentionally kept the information from investors.
In her opening statement at Sterling's securities fraud trial Monday, prosecutor Susan Porter said Sterling spun, hid and intentionally omitted information about his company's health from financial statements.
HomeGold went under in March 2003, bringing down subsidiary Carolina Investors with it. About 8,000 investors lost more than $275 million in what was at the time the largest bankruptcy in South Carolina history.
Defense attorneys will give their opening statement Monday afternoon. Sterling has been charged with conspiracy and securities fraud and faces up to 25 years in prison if convicted.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
APNP 02-09-09 1341EST
TV Station Profiles & Public Inspection Files forWACH