The judge overseeing the Starkey Laboratories fraud case said this morning that defense attorneys will be able to question owner Bill Austin about his personal life, a tactical win for the four businessmen accused of crimes.

The defendants have argued that they did things Austin wanted them to do and are trying to bring jurors' attention to his involvement in previous wrongdoing, some evidence of which emerged in divorce proceedings in the 1990s.

In making the decision, U.S. Chief Judge John R. Tunheim said defense attorneys will be able to question Austin about his divorce settlement, issues with tax filings and allegations that he fit people with hearing aids without a license. Tunheim said they could bring up those issues with other witnesses only if they had direct knowledge of them.

Two former executives of Eden Prairie-based Starkey — Jerry Ruzicka, its former president; Larry Miller, former human resources chief — and associates W. Jeffrey Taylor and Lawrence T. Hagen are accused of stealing $20 million from the company and Austin. The defendants say they did nothing wrong and instead saved the company from bankruptcy, lawsuits and industry mistrust created by Austin.

Prosecutors asked Tunheim earlier this week to limit the evidence and questioning about Austin's previous actions. They said Austin is a victim of the defendants and has never been charged with a crime. The defense "is trying to paint Mr. Austin as dishonest," assistant U.S. prosecutor Lola Velazquez-Aguilu said in court Tuesday.

John Conard, who is representing Ruzicka, said a full discussion of Austin's character was necessary to provide a complete defense.

All four defendants have pleaded not guilty to charges that they secretly created sham subsidiaries, forged Austin's signature on documents or illegally transferred $15 million in restricted company stock from Austin to themselves. They say Austin knew and approved of all transactions and that he pledged in signed documents to exercise financial oversight over Starkey, which is America's largest hearing aid manufacturer.

Austin is expected to take the stand Thursday.

Taylor, the former president of hearing aid parts supplier Sonion U.S., was fired in November 2015 after being accused of working with Ruzicka to create two sham companies that allegedly bilked millions in phony commissions, fees, discounts and bonuses from Starkey and Sonion. Their attorneys have sought to present e-mails or signed documents as evidence showing that Austin knew and approved all transactions.

However, Sonion CEO Christian Nielsen is testifying this morning.

On Tuesday, Nielson testified that Taylor never had the authority to create subsidiaries for Sonion and had a noncompetition clause in his employment contract.