San Diego

Nancy Hoover Hunter told jurors Tuesday that she prepared hundreds of J. David & Co. checks that were not related to company business but that she did sign them.

Instead, Hunter said, the founder of the failed La Jolla investment firm, J. David (Jerry) Dominelli, had the final say because he controlled the company checkbooks.

Hunter is charged with 197 counts of federal tax evasion and fraud. She testified in her own defense for the seventh day before U.S. District Judge Earl B. Gilliam, answering questions from Assistant U.S. Atty. S. Gay Hugo about several J. David checking accounts, two loans to a J. David employee that Hunter coordinated and a number of memos addressed to her.

Hunter attempted to distance herself from all of these matters, usually by saying that Dominelli had control over all aspects of J. David business.

The 197 counts stem from Hunter’s role as a top executive at J. David, which collapsed when nervous investors forced it into bankruptcy court. About 1,200 investors lost about $80 million in the J. David affair, a giant fraud in which prosecutors allege Hunter played an active role.

Hunter’s defense team maintains she was blinded by her love for Dominelli, who is serving a 20 year prison sentence, and was unaware of any illegal activities.

Meanwhile, it was revealed Tuesday that defense attorney Richard Marmaro has filed a sealed document with the court requesting court-ordered immunity for an unnamed defense witness. Prosecutors said they will oppose that request.

Hunter was scheduled to retake the witness stand today. Hugo’s cross-examination is expected to last through the end of the week.