Michael Jackson severed ties with a producer when he learned the man was connected to gay pornography, the pop star's attorney said Wednesday as jury selection began in a $3.8 million lawsuit brought by the former business associate.

Michael Jackson visits an orphanage in Tokyo, May 28, 2006. Jackson, who earlier this year shuttered his Neverland Valley Ranch in California, will move to Europe to reignite a musical career stalled by his sex abuse trial, a spokeswoman for the pop star said on Tuesday.[Reuters]

It was a glimpse into the trial in which F. Marc Schaffel claims he is owed for loans, expenses, and salary for work on a charity record.

The record was never distributed in the U.S., and there are disputes over whether Schaffel profited from its sales in Japan and whether he was ever paid for his services.

Jackson's attorney Thomas C. Mundell told prospective jurors that evidence would show Schaffel had no expertise in the recording industry and actually owed Jackson money.

Jackson was not expected in the courtroom but would give videotaped testimony, Mundell said.

"I'd love for him to be here, but he lives in Bahrain, which is 10 time zones away," Mundell said.

Jackson moved to the Middle East after he was acquitted of child molestation charges a year ago.

Three of the 12 jurors selected to hear the case said they still believed Jackson was guilty of the molestation charges.

It was expected that panelists had some opinion about the superstar.

A retired nurse said she met Jackson at the hospital where he was treated when his hair caught fire during a commercial shoot in 1984.

As for her impressions of him, she said: "He was wonderful with the kids."

The entire audience of prospective jurors burst into laughter and the woman was dismissed from the panel.

Jury selection was scheduled to resume Thursday, followed by opening statements and witness testimony.

The trial could expose the financial dealings of Jackson, who has been rumored to be on the verge of bankruptcy for some time.

Among those in the courtroom Wednesday was L. Londell McMillan, a New York lawyer who recently was hired by Jackson to restructure his business affairs.

Schaffel's lawyer, Howard King, said Jackson had hired Schaffel to make two television shows designed to rebut a notorious documentary called "Living With Michael Jackson."

King said that for a time, Schaffel was paid and then Jackson ran out of money. "Mr. Schaffel was left holding the bag," he said.

Judge Jacqueline Connor told the panelist that attorneys failed to settle the case out of court.

"We have done everything we could to work it out up until yesterday and we put in our best efforts," Connor said.