He did allow prosecutors to present evidence that the payments were made in cash, in various amounts, for the non-business spending.

The case was in recess yesterday before both sides make final motions and give their closing arguments June 10.

Mr. Segal, the former chief executive officer of Chicago-based brokerage firm Near North Insurance Brokerage Inc., is on trial for misappropriating more than $20 million from the firm's premium trust fund account over a 12-year period for his own and company use.

Mr. Segal and his firm have been charged with making false statements to the Illinois Department of Insurance to hide the alleged fraud. They have also been accused of giving rebates and discounts on insurance premiums financed through the misappropriations.

Randall Samborn, public information officer for the U.S. Attorney of Northern District of Illinois, said the jury is expected to receive the case by June 14 and begin deliberations.

According to court papers filed by prosecutors, Mr. Segal is alleged to have spent more than $220,000 of the firm's funds on escort services during a 12-year period.

Other money allegedly paid for airline tickets and other personal expenses of individual young women not employed with the firm.

Evidence was also introduced linking alleged illegal discounts for insurance policies with major Chicago area political figures and celebrities.

Mr. Segal's defense has been that the fault does not lie with misconduct on his part, but poor accounting practices on the part of Near North. The company, the defense argues, was in the process of straightening out its accounting mess. The firm alerted the Illinois Department of Insurance of the situation. Mr. Segal was arrested in January of 2002 by the FBI shortly after making the situation known to the department.

A spokeswoman for Mr. Segal, Kitty Kurth, said that "Near North Insurance was growing so fast under Mr. Segal's entrepreneurial leadership that it became sloppy in its accounting, and conversion to a new computer system exacerbated the problems.

"However," she continued, "the attorneys emphasized that no customer went without insurance coverage and no insurance companies went unpaid."

If convicted, Near North could face five years probation and fines of $500,000 for each count. Mr. Segal could face jail time ranging from 5-to-20 years for each count and a maximum of $250,000 in fines for each count.