San Diego

After hearing final instructions Tuesday morning from U. S. District Judge Earl B. Gilliam, the jury in the fraud and tax-evasion trial of Nancy Hoover Hunter began deliberating the 197 charges against the former J. David and Co. executive.

The seven-woman, five-man jury received instructions for about an hour before beginning what promises to be many days of deliberations.

Gilliam instructed the jury on the technical aspects of the law affecting the six categories of charges against Hunter--conspiracy, income-tax evasion, aiding and abetting in the preparation of false tax returns, making false statements to a government agency, mail fraud and fraud by a commodities pool operator.

Hunter faces 197 counts in an indictment that alleges that she played an active role in the giant J. David Ponzi scheme. When the La Jolla brokerage house was forced into involuntary bankruptcy in February, 1984, about 1,200 investors lost $80 million.

Hunter’s former lover, J. David (Jerry) Dominelli, is serving a 20-year prison term for masterminding the fraud.

Since the trial began in April, Hunter’s attorneys have been trying to persuade the jury that their client was kept completely in the dark about Dominelli’s fraud. The defense contends that Dominelli and his inner circle of associates constantly lied to Hunter about his alleged money trading and that Hunter was blinded by love for him.

The jury will be considering the testimony of about 150 witnesses, as well as 2,000 pieces of evidence.

Court observers predict prolonged deliberations. Apparently the jurors expect the same; only 90 minutes after the start of their deliberations they asked Gilliam for a Nov. 24 vacation day.