MIAMI - A former University of South Carolina president testified at his visa fraud and money laundering trial Thursday that he was running a scam on a man he thought was a Russian mobster because he was desperate for money to treat his mental illness.

In reality, the mobster was an undercover detective and James Holderman was arrested. He could get up to 20 years in federal prison if convicted of visa fraud, money laundering and conspiracy. The jury was expected to begin deliberations Friday.

Holderman, head of the university for 13 years until a financial scandal in 1990, testified that he wouldn't know how to begin money laundering.

But prosecutor Richard Gregorie confronted him with his 1996 bankruptcy fraud conviction, which included a money laundering count.

At first, Holderman said he didn't remember that charge. When Gregorie read an excerpt from the law involving wire transfers, Holderman said, "I didn't understand that to be money laundering."

Holderman called, met with and exchanged e-mails with Miami Beach police Detective Sgt. Peter Smolyanski for nine months. The officer posed as a drug trafficker in need of U.S. visas for himself and up to 200 associates and $500,000 to $1 million a month in clean profits from his crimes.

"This idea of violating the law originated with the government," defense attorney Neil Nameroff told jurors. "It is your job to judge the accusers before you judge the accused."

Holderman, 67, of Charleston, S.C., said he was willing to take $15,000 from Smolyanski twice as part of his own "charade" to get treatment for his bipolar disorder but never did anything to get illegal visas or to launder money.

"I was desperate for money and I was grasping at straws. I needed to get on my medications and I knew it. I needed to see my doctor for therapy, and I knew that," Holderman said. "I wasn't about to get involved with him for $1 million. ... That's killing money."

Holderman said he talked up his connections to White House chief of staff Andrew Card, former U.S. Secretary of State Lawrence Eagleburger and former White House chief of staff Howard Baker but never contacted them about the mobster.

"I was leading him on. I was practicing a charade on him," Holderman testified. "I didn't think for $10,000 or $15,000 that he would break my legs. ... I was willing to take the risk."

In closing arguments, prosecutor Scott Ray said, "He knows what he's doing is illegal. I think what they call this in Washington, D.C., is plausible deniability."

Holderman's co-defendant and former protege, Rafael Diaz Cabral, testified Wednesday that he was brought in by Holderman and thought it was a mistake to get involved but still agreed to participate.

The two holders of doctoral degrees were arrested counting out money from $400,000 dumped by Smolyanski on a table during a hotel meeting last March. Diaz said he would take $15,000 to the Dominican Republic to begin work on the visa deal.

Diaz said he and Holderman also agreed to split a one-time laundering fee of $250,000 for the purchase of a Dominican casino license from Diaz's father.

Diaz, 39, of Greenville County, S.C., is to report to prison in November to begin serving a 14-month prison term, which was shortened due to his cooperation.

Holderman is not claiming an insanity defense but wants jurors to consider his mental state. He was hospitalized soon after his arrest in March when jailers cut off his medication.