San Diego

The judge who sentenced convicted tax evader Nancy Hoover Hunter to a 10-year prison term said Monday he would consider setting bail, a move that might enable her to be released from prison while she awaits retrial.

U. S. District Judge Earl B. Gilliam said at a hearing Monday that he was inclined to deny the bail request, put forth by Hunter’s attorneys, but he added that he needs a few days to think about it.

Hunter, 51, convicted Dec. 11 of four counts of tax evasion connected with the giant J. David & Co. fraud, faces a retrial on 192 other counts, primarily fraud and conspiracy stemming from her role at the failed La Jolla firm. That trial is due to begin May 1.

About 1,500 investors lost about $80 million in the J. David affair, a Ponzi scheme in which money from new investors was used to pay off old investors and little actual trading of stocks or money market funds was done.

Prosecutors allege that Hunter created false documents that were instrumental in creating and perpetrating the fraud. At Hunter’s first trial, the jury that convicted her of the four tax counts deadlocked, 11-1, for conviction on the 192 fraud and conspiracy counts.

She has been held without bail at the Metropolitan Correctional Center in downtown San Diego since Dec. 11. Gilliam imposed the 10-year prison term March 6.

At Monday’s hearing, defense attorney Richard Marmaro said that Hunter needed to be free on bail to prepare for the second trial. Hunter would even be willing to submit to house arrest and wear an electronic monitoring device, Marmaro said.

Assistant U.S. Atty. S. Gay Hugo reminded Gilliam that he has said previously that he considers Hunter a flight risk. That risk has increased since the imposition of the 10-year sentence, Hugo said.

Gilliam said he would issue a formal written order detailing his decision later this week.