LEXINGTON – The trial of the former chairman of HomeGold continued this week, even through the President’s Day holiday Monday.

Two former chief financial officers for the company testified Monday in the trial of John “Jack” Sterling, who is charged with securities fraud and conspiracy in connection with the downfall of HomeGold and Pickens-based Carolina Investors.

Former CFO Charlie Sides testified Monday about how HomeGold was operated and described the Greenville business man as “a wolf in sheep’s clothing.”

Larry Gosnell was also a CFO for the company, but he testified that he only worked there eight weeks because he was not comfortable with its accounting practices, WSPA reported.

But the former officer also testified that Sterling did not advocated violating generally accepted accounting principles or do anything illegal during his tenure with the company.

Last week, other former CFOs of the company testified as well, including Karen Miller, who pleaded guilty to conspiracy in the case, and Kevin Mast.

Mast testified that he believed HomeGold may have been doctoring financial records as early as the second half of 2000, according to the WSPA report.

The State newspaper also reported that Miller testified last Wednesday that Sterling ordered her to destroy records of a telephone conference held by board members to discuss selling come of the company’s assets.

Miller testified, however, that she did not follow those orders and saved the typed notes.

She also testified that Sterling stayed actively involved with the company, even after its merger with Ronald Sheppard’s HomeSense Financial Corp. in 2000.

Keith Giddens, a former Carolina Investors CPA also took the witness stand on behalf of the prosecution.

Giddens later became president of Emergent Group from 1991 to 2000.

Sterling, 70, was indicted by a state grand jury on two counts of securities fraud and one count of conspiracy.

If convicted, he could face up to 25 years in prison and $105,000 in fines

He maintains his innocence of the charges.

The S.C. Attorney General’s Office has had five convictions related to the collapse of HomeGold and Carolina Investors.

Former Carolina Investors Chairman Earle Morris, is serving a 44-month sentence at Perry Correctional Institute and was turned down for parole last week.

Carolina Investor’s former president Larry Owen served about half of an eight-year sentence before being released from prison in August 2008.

His wife, Ann Owen, a former Carolina Investors vice president pleaded guilty in 2005 to eight counts of securities fraud. She spent 90 days in jail following a 10-year suspended sentence, as well as five years probation. She has already served the prison time.

Miller pleaded guilty in 2005. She has not been sentenced for the one count of conspiracy as she continues to cooperate with the prosecution.

More than 12,000 lost about $278 million when Carolina Investors closed its doors unannounced in March 2003.

They recouped about 18 cents on the dollar during the bankruptcy process for the two companies.