LOS ANGELES -- Two women in their 70s saw a chance to make a profit from the plight of the homeless and hatched a murder plot that led to the death of two men and allowed the women to collect more than $2.8 million in insurance proceeds, a prosecutor told jurors Tuesday.

Video | March 2007 Images

"They made $2.8 million by murder -- murder to collect life insurance benefits of two men who had nothing," Deputy District Attorney Truc Do told the nine-man, three-woman jury.

Helen Louise Golay, 77, of Santa Monica, and Olga Rutterschmidt, 75, of Hollywood, are charged with two counts each of murder and conspiracy in the deaths of Kenneth McDavid and Paul Vados.

The prosecution on Tuesday showed jurors a videotape of one defendant accusing the other of being too greedy in taking out too many insurance policies on homeless men.

"It's your fault," Rutterschmidt told Golay in the tape. "You can't have that many insurers. ... You were greedy. That's the problem."

The tape was played during an opening statement by Do.

Do presented jurors an outline of evidence she said will tie the women to the deaths of two homeless men who were run over by cars.

Authorities allege that the defendants conspired to insure two indigent men, kill them in fake hit-and-run accidents and collect on the insurance policies.

Both women have pleaded not guilty. The prosecution is not seeking the death penalty.

Defense attorneys deferred their opening statements until the prosecution side of the case concludes.

"We have evidence to show she's not guilty," Golay's attorney, Roger Jon Diamond, said in an interview Monday. "They have over 100 witnesses but they have no eyewitness, no confession. It's all circumstantial."

The videotape was recorded by the FBI when the women were in custody for what was initially a mail fraud investigation.

In one part of the videotape, Golay coolly attempted to say that one victim loved her and Rutterschmidt and felt they were his family.

Rutterschmidt snapped back: "I was the cousin. You were the fiancee. Baloney."

Do said the women found the men in a homeless shelter at a Hollywood church, set them up in apartments and supported them for two years, all the while taking out multiple life insurance policies on them.

The prosecutor said they ultimately profited to the tune of $2.8 million and were still trying to collect on policies when they were arrested.

During the prosecution's opening statement, the jury was shown pictures of the victims' bodies, receipts for rent, a car that has been linked to one of the killings and a rubber stamp with one victim's signature that was allegedly used to sign insurance policies.

The case began in 2006 in federal court with a grand jury indicting the women on nine counts each of mail fraud and related charges for making false insurance claims. But when further evidence developed in the alleged hit-and-run scheme, the case was transferred to Los Angeles County Superior Court and murder charges were filed.

In the videotaped conversation, the women apparently thought their only problem was a mail fraud investigation and Golay calmly told Rutterschmidt, "Be quiet. The only thing they're after is mail fraud."

Rutterschmidt replied, "They have no proof."

Rutterschmidt talked on agitatedly in spite of the warning. She berated Golay for taking too many insurance policies and said, it was "your fault it ended up like this."

"I paid for them," replied Golay.

"You have to pay back," said Rutterschmidt. "They will lock you up."

Do said the women spent about $64,000 for insurance policy premiums and to support the men. They took out a total of $5.7 million in insurance policies, she said.

"After putting all that money into Mr. McDavid, his life was theirs," the prosecutor said.

She showed jurors a photo of the palm-shaded Hollywood building where Golay and Rutterschmidt rented a studio apartment for McDavid at $875 a month and the rental checks they signed.

Do said the women brought him food and closely monitored his life but the plot almost soured when McDavid invited four or five other homeless people to move in with him. When the women discovered it, she said, they brought police to evict the others and hired armed security guards to sit outside the apartment. The guards were expected to testify.

Do said each man was kept by the women for two years, the length of time that would make their insurance policies uncontestable, then killed them. She said they were confident of getting away with the McDavid murder because they had killed Vados five years earlier.

On June 21, 2005, she said, Golay "and possibly others" ran over McDavid in an alley. She said Golay then called for a tow because the car had problems.

The tow truck driver is to testify that it was taken to Golay's home. Later, it was abandoned in Hollywood and investigators found McDavid's DNA on its undercarriage.

Do said Golay went to the coroner's office, claimed McDavid's body as a relative and had it cremated.

The first two witnesses were men who found McDavid's body and called police. There are no eyewitnesses to the death.

Previous Stories:

• March 29, 2007: Women Plead Not Guilty In Fatal Hit-And-Run 'Black Widow' Case
• March 15, 2007: Two Women Ordered To Stand Trial In 'Black Widow' Case
• February 5, 2007: Judge Dismisses Insurance Lawsuit In 'Black Widow' Case
• January 18, 2007: Charges In 'Black Widow' Case Re-Filed After Dismissal
• September 13, 2006: 'Black Widows' Plead Not Guilty To Homicide Charges
• August 29, 2006: Attorney Complains Of Jail Conditions For 'Black Widow' Suspect