SAN DIEGO -- Opening statements began Tuesday in the case of a former Santee man accused of killing his estranged wife, though her body has never been found.

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James Dailey (pictured, left), 35, pleaded innocent to charges of murder in connection with the disappearance of his wife, Guadalupe, who was last seen in 1997.

Defense attorney Michael Begovich told jurors that the alleged victim may still be alive and living with relatives.

"This is a circumstantial case," attorney Michael Begovich said in his opening statement. "There is no direct proof of death ... there is no proof that Guadalupe (pictured, right) is dead."

Dailey allegedly told a number of co-workers at the Viejas Indian Casino that he was going to kill his spouse, who he blamed for their money problems.

Deputy District Attorney Dan Goldstein said that Dailey told one person that he was going to dump "Lupe" Dailey's body where it couldn't be found.

"He told the witness, 'I'm going to kill her and nobody's ever going to find her,"' Goldstein told the jury.

Witnesses at Dailey's preliminary hearing in May testified that he talked about strangling his wife, breaking her neck or throwing a radio into her bath water.

The defendant allegedly told one person that he would strap weights to his wife and toss her into the ocean.

"Mouthing off doesn't equal murder," Begovich said, adding that none of Dailey's co-workers contacted police about the alleged threats.

Dailey was also upset after his young daughter told him that her mother had men stay overnight at her apartment, a co-worker testified.

The defendant told a sheriff's investigator four years ago that he last saw his estranged wife at about 6 p.m. on Aug. 31, 1997, when she left his residence after they argued about money.

Dailey told detectives that he arranged for a babysitter that night so he could "cool off" after the argument.

He told authorities that he put his boat in the water and motored around Mission Bay. But investigators checked and found the vessel inoperable, Goldstein said. The victim's checkbook -- with a receipt from Aug. 30 -- also was found in the boat, the prosecutor said.

Witnesses testified that Guadalupe Dailey was afraid of the water.

Six or seven months after his wife disappeared, Dailey moved to Indiana with the couple's two young children.

Dailey lived in Muncie in his sister's home until early this year, when he was arrested and charged with murder.

Begovich has suggested that someone who hated Guadalupe Dailey -- possibly one of her boyfriends -- may have killed her, if she is even dead.

The defendant faces 15 years to life in prison if convicted.