Bonds claimed Hoskins was forging the player’s signature on contracts and keeping proceeds from sales of memorabilia that was to have been split between the two partners, according to Cardoza.

Bonds made “an obscene amount of money that would make a normal human being cringe” for the autographs, but felt Hoskins was not paying him what he was owed, Cardoza said.

Soon after, Bonds went to the U.S. Attorney’s Office in San Francisco and filed a complaint about Hoskins, Cardoza said.

Hoskins met with federal prosecutors, according to his lawyer. He presented detailed records of all disputed transactions and the investigation was dropped a year later, Cardoza said.

Hoskins did not know whether Bonds was paying taxes on profits from the memorabilia business, Cardoza said.

The timing of the dispute between Bonds and his former friend raises questions about whether Hoskins agreed to cooperate with federal prosecutors investigating whether Bonds lied to a grand jury in December 2003, when he reportedly said he never knowingly used performance-enhancing drugs.

A grand jury has been meeting in secret for months to consider charges against Bonds. Witnesses known to have testified in the probe include Giants trainer Stan Conte and Bonds’ surgeon, Arthur Ting.

Bonds’ personal trainer, Greg Anderson, who served three months in prison after pleading guilty last year for his role in the BALCO scandal, has been jailed since July 5 for refusing a judge’s order to testify before the grand jury.

More on Barry Bonds, new HR king Bonds passes Aaron with 756th HR Opinion: Record-setting night was a blast At Bat blog: Bonds is San Francisco's treat Beyond Bonds: Candidates for homer crown   Charting Bonds' career  |    Funny fans Compare 700 club |   Discuss | Stats

In court papers filed with a federal appeals court Monday, Anderson’s attorney Mark Geragos argued that his client shouldn’t have to testify because previous grand jury testimony has been publicly disclosed. Geragos also argued that Anderson’s plea agreement last year stipulated that he will not cooperate with the government’s investigation and stated the trainer was a target of an illegal wiretap.

The government filed papers with the appeals court Thursday arguing against releasing Anderson, but asked that the submission be kept sealed. The court declined to release the government’s papers pending a ruling from a judge, expected Friday.

Slide show   The Week in Sports Pictures The Giants on top of the football world, getting ready for the London Olympics and more. more photos

With the grand jury widely expected to deliver its findings soon, the relationship that boiled over between Bonds and Hoskins could play a key role in any indictment against one of baseball’s greatest sluggers.

Bonds hit 12 home runs in the first half of this season to give him 720 for his career, 35 from tying home run king Hank Aaron’s record of 755. He passed Babe Ruth and moved into second place on the career list with No. 715 on May 28.

He’s batting .249 this season with 38 RBIs, and has missed 20 games with knee problems.

If charged with perjury and convicted, he could face up to five years in prison. He could face another five years if charged and convicted of money laundering.