Hunter’s Testimony Nears End at Her Trial in J. David Fraud

Nancy Hoover Hunter is expected to finish her testimony today, after eight days on the stand in her fraud trial, and prosecutors are scheduled to present three rebuttal witnesses.

“She’s the last witness,” Hunter’s attorney, Richard Marmaro, told U.S. District Judge Earl Gilliam Jr. after Marmaro finished questioning her.

Assistant U.S. Atty. S. Gay Hugo said she had some more questions on re-cross examination and then would put on two Internal Revenue Service agents and a handwriting expert as rebuttal today.

The case, which began in March and is one of the longest in San Diego history, may go to the jury next week, depending on when closing arguments are scheduled.

Hunter, 51, is charged with 197 counts of mail and commodity pool fraud, tax evasion and making false statements in connection with the failed J. David & Co. investment business that caused a loss of $80 million to 1,500 investors.

She again tearfully recounted the circumstances under which she pleaded guilty to a conspiracy charge in 1986. In that case, she, then-Mayor Roger Hedgecock, her lover Jerry Dominelli and campaign consultant Tom Shepard were charged with campaign violations in the mayoral race.

“I was not guilty. I signed it (the plea agreement) because it was part of what I had to do,” said Hunter. “Everybody who does a plea bargain has to say they’re guilty, whether they’re guilty or not.

“I know it says under penalty of perjury, but I did not do a conspiracy with Roger Hedgecock.”

She disclosed that she initially helped the U.S. attorney’s office in its fraud case against Dominelli. Hunter said she phoned a prosecutor in 1984 to tell him that Dominelli had fled San Diego for the Caribbean island of Montserrat.

“I was trying to be helpful,” Hunter said.

Dominelli is now serving a 20 year sentence for fraud.

Hunter, a former mayor of Del Mar, said she also recalled preparing payments of $30,000 a month to Dominelli’s wife, Anjie, for what she thought was a divorce settlement. However, although Dominelli and Hunter were living together, he did not divorce his wife.

Marmaro asked her about those checks, and Hunter remarked: “It was more money than anyone I ever knew had in a divorce settlement.