SAN DIEGO -- A City Heights resident accused of sexually assaulting and murdering a man in San Diego and sexually assaulting another young man told one of his former bosses he liked to pick up young men, drug them and have sex with them, the former employer testified Wednesday.

Billy Sharrock testified during the second day of a preliminary hearing for Philong Huynh, who is charged with murder and a special circumstance of sodomy in the January 2008 slaying of 23-year-old Dane Williams of Huntington Beach, who had come to San Diego to work at a convention for a Costa Mesa-based skate and surfwear clothing company.

The defendant was arrested after a second young man came forward last year with DNA evidence that allegedly tied Huynh to Williams' murder.

Sharrock, the former co-owner of a company that produced amateur gay porn, testified that he hired Huynh in August 2006 to take care of the firm's computers.

When asked how a particular weekend went, Huynh said he had met a young man and treated him to a night of women and drinking in Tijuana, the witness testified.

Huynh said that after showing a young man a good time, he liked to offer him something to "relax," then would "have his way" with the man, Sharrock testified.

"He said he spent all that money ... he was going to have his way," Sharrock testified.

Huynh, 39, liked straight guys because they were "more of a challenge," the witness said.

"He told me he would offer a drug to them ... the majority of them took it," Sharrock testified.

The witness said he saw Huynh with Valium at the office. Sharrock said the defendant told him he had a medical background and got his drugs in Mexico.

Sharrock said Huynh told him that "these boys were unconscious when he was having anal sex with them. That was his form of entertainment."

The witness said Huynh told him he liked intoxicated men and young men in the military.

"He told me he would provide them with alcohol and hopefully he would have sex," Sharrock testified.

The preliminary hearing is expected to continue Thursday.

A Navy man identified as Jeremiah R. testified in December that he met the defendant in downtown San Diego on June 6 last year.

The witness said the defendant offered him a ride to the beach. On the way, the defendant stopped at a liquor store and bought two bottles of liquor and two bottles of Coke, Jeremiah said.

Jeremiah said that after going to Ocean Beach, he had a headache and the defendant gave him a pill or two from a Tylenol bottle. He said he blacked out at some point and has only scattered memories of the rest of the evening.

The next morning, he woke up at the defendant's home without his underwear on, he said.

An officer later recommended he get a sexual assault exam, the witness said, denying any sexual interest in men.

Prosecutors said doctors found Jeremiah had benzodiazepine intoxication and visible signs of a sexual assault consistent with sodomy. Benzodiazepine is a central nervous system depressant.

Pharmaceuticals were later found in the defendant's home, including a prescription for benzodiazepine that was filled in January 2008, the month Williams was killed, the prosecution said.

Williams disappeared after leaving the Hard Rock Cafe in the Gaslamp Quarter in the early morning hours of Jan. 26, 2008.

He was intoxicated and seen falling to the ground when he left the club, prosecutors said. His body was found three days later in a City Heights alley, one block from where Huynh lived, authorities said.

Williams' underwear was missing, and DNA evidence was recovered from his shirt and body, said Deputy District Attorney Gretchen Means.

At the end of the preliminary hearing, Judge Charles Rogers will decide if enough evidence was presented for Huynh to stand trial.

District Attorney Bonnie Dumanis will decide later whether the defendant will face the death penalty or life in prison without parole if convicted.