The top two executives of Amerindo Investment Advisers Inc., Alberto Vilar,  who is also recognized as one of the world's leading art patrons, and Gary Tanaka had been accused of stealing millions of dollars from the Investment Advisors Inc.’s clients.

The opening statements in the trial took place Monday. Prosecutors said Vilar and business partner Tanaka had an assistant snip Lily Cates' signature from one document and tape it to another authorizing a $250,000 transfer into Vilar's personal account.

Mr. Vilar, 67, and Tanaka, 65, are charged with conspiracy and securities fraud, investment adviser fraud, mail fraud, wire fraud and money laundering while handling funds of clients of their firm, Amerindo Investment Advisors, from 1986 to 2005. But they pleaded not guilty. If found otherwise they are likely to spend up to 20 years in jail.

Vilar’s lawyer, Herald Price Fahringer, also said his client was innocent. And he most certainly plans to turn things in his favor by underlining Vilar’s numerous good civil deeds. Vilar contributed more than $10 million to the arts and music community in the Vail Valley, helping to finance a performing arts center in Beaver Creek and to remodel the Gerald R. Ford Amphitheater in Vail.

Tanaka's lawyer, Glenn Colton, told jurors the case is the result of impulsive behavior coming from prosecutors, who "converted a simple contract dispute with a few disgruntled investors into a criminal case."

On the other hand, Assistant U.S. Attorney Benjamin Naftalis said the men repeatedly lied to clients from 1986 to 2005 by promising safe and steady returns even while they invested much of their portfolio in risky technology stocks that ultimately lost most of their value.

“He told them to their face their money would be safe and guaranteed,” Mr. Naftalis said, calling that an “absolute sham.” The money instead was put in risky technology stocks that ultimately lost most of their value, he said. Mr. Vilar never made that clear, Mr. Naftalis added.

The most concrete situation is Lily Cates’, an Amerindo client for 18 years and one of the first victims, who was convinced to invest $5 million after lying to her about receiving a special government license for an investment opportunity. Cates is an heiress and the mother of actress Phoebe Cates.

The prosecutor also outlined the fact that Mr. Vilar diverted $5 million in 2002 from Lily Cates, for personal and business expenses, including fulfillment of a $500,000 pledge to his alma mater, Washington and Jefferson College. It seems that about $3 million went to pay back another investor. Mr. Vilar never let Ms. Cates know about all these, Mr. Naftalis said, adding, “That’s crime. That’s fraud.”

The defense lawyers replied to this whole situation by underlining the fact that in the end, all the clients were repaid. Moreover, Fahringer said he could prove that after an initial investment of $1.2 million, Amerindo returned close to $6 million to $7 million to Cates.