An airline pilot has told a jury how he lost £210,000 which he invested in a Topsham boatyard.
Robert White sunk his money into the Exe Leisure business after being introduced to bosses Andrew Bowden and Paul Randle by his daughter Natalie.
Randle, aged 47, is on trial at Exeter Crown Court accused of fraudulent trading at the company which went bust in July 2006.
The prosecution say he and Bowden swindled boat owners who sold their craft through Exe Leisure and its brokerage business called Solent Management.
They also allegedly defrauded finance companies by buying boats on hire purchase and selling them without permission and took deposits and payments for expensive engines which were never delivered.
The two directors are alleged to have siphoned £136,000 from brokerage clients, and tens of thousands from hire purchase companies and engine buyers to try to prop up the failing business.
They say Exe Leisure went from making profits of £40,000 a year to losses of £4,000 by 2005-6 and the directors were desperate to keep the venture afloat.
Randle, aged 47, of Exeter Road, Topsham, denied fraudulent trading. He says he was not involved in handling money within the business.
He is jointly charged with fellow director Bowden but the jury have been told they do not need to worry about considering verdict in his case.
Randle says he played no part in the financial management of the company and lost £138,000 in personal guarantees when it went into administration.
Commercial pilot Mr White, who is usually known by his middle name Ian, said he became involved in 2002 and invested £170,000 initially and a further £40,000 later.
He received a 20 per cent share of the company but rarely visited its offices and workshops on Topsham Quay and Tremlett's Yard and never became a director or played any part in day to day management.
He said he gave up his job to try to save his investment when he realised the company was in severe financial difficulty.
His daughter Natalie, who is a Royal Yachting Association qualified sailing and powerboat instructor, worked for Exe Leisure when he first invested but had left by 2006.
Mr White said:"I became aware things were going wrong in 2005. At that time I was working but I stopped so I could spend six to eight weeks trying to save my investment.
"I was trying to find out how things were going and. I kept being asked by the directors if I could put in more money.
"Mr Bowden would be the one asking but Mr Randle would be around. I asked to meet the bankers to discuss the state of the company and me and Mr Bowden met two or three people from HSBC.
"I was recommended to see a company in Exeter who were specialists in business restructuring and they came to the offices on the Quay at Topsham.
"Both directors were running the business, selling boats and engines. Mr Bowden was selling the boats and Mr Randle was doing more of the engines and spares and ancillary equipment.
"I put in the further £40,000 but I never received anything back from my entire investment."
