The Region - News from March 14, 1985

Jailed financier J. David (Jerry) Dominelli, whose now-fallen San Diego money-trading firm once lured nearly 1,000 investors and $100 million, could face a prison sentence of 20 years under terms of a plea agreement with federal prosecutors. Dominelli will plead guilty next week to four felonies--two for crimes committed before the bankruptcy of his once-mighty J. David & Co. investment firm, and two for crimes occurring after, according to sources close to the case. The pleas include one count of mail fraud and a tax violation charge before the Feb. 13, 1984, involuntary bankruptcy of J. David & Co., as well as charges of bankruptcy fraud and mail fraud. Each carries a maximum prison sentence of five years. Assistant U.S. Atty. Robert D. Rose would not comment on the nature or number of the charges involved in Dominelli’s plea. The agreement ends the federal government’s investigation of Dominelli, although the grand jury will continue to investigate others.