Ex-Mayor and Socialite Gets 10-Year Term

A judge rebuffed Nancy Hoover Hunter’s tearful plea for mercy Tuesday and sentenced the one-time socialite and politician to 10 years in prison for tax evasion arising from her relationship with convicted swindler J. David (Jerry) Dominelli.

“I’m terribly sorry for all the pain and suffering I’ve caused,” Hunter sobbed as she stood before U.S. District Judge Earl Gilliam in a khaki jail jumpsuit and blue sneakers.

“I feel very stupid. I feel like my whole life has been a failure. I’ve tried to find words for the incredible shame I feel. I feel like everything I’ve done has been wiped out. I’m truly sorry, your honor, and I ask for your mercy.”

Gilliam, who called his sentencing decision “very difficult,” also denied a motion for a new trial by rejecting defense claims that he improperly pressured jurors toward a verdict in some of his comments to them during deliberations.

It was clear that Hunter, who was mayor of Del Mar in 1976, was a good and caring person, Gilliam said, but many people were hurt in Dominelli’s $80-million investment scam. The scheme unraveled in 1984 when his J. David & Co. commodities trading firm was forced into bankruptcy.

“For that, she must share some of the blame,” the judge said of Hunter, 51, who was Dominelli’s lover and business partner then.

Jurors convicted Hunter on Dec. 11 of four counts of tax evasion and acquitted her of another tax count. But the jurors deadlocked on 192 other conspiracy and fraud charges, for which Hunter faces retrial.

Dominelli, who admitted plundering investor funds to finance the couple’s lavish lifestyle, is serving a 20-year prison term. Authorities say he lured about 1,200 investors with promises of 40% to 50% returns on his international money-trading ventures.

However, little or no trading actually was done, said prosecutors. They described the scam as a classic Ponzi scheme in which money from new investors was used to satisfy the demand for dividends by established customers.

Hunter’s husband, Santa Barbara millionaire Kenneth Hunter, was in the audience with her son, daughter and other family members. They were prohibited from communicating with Hunter during the 2 1/2-hour hearing.

Hunter, who will have to serve five years’ probation upon her release from prison, also is awaiting a separate trial on a 56-count indictment accusing her of securities fraud.