Patricia Lillian McKittrick is accused of defrauding 14 people between 2007 and 2008 with assurances she would invest money on their behalf in Westpac and Macquarie Bank shares.

Maitland Local Court heard that the 70-year-old become caught up in a Ponzi scheme – an investment “scheme” that guarantees high returns but pays investors portions of their own money or that of other investors.

Documents tendered to the court showed McKittrick received as much as $530,000 from one investor and as little as $10,000 from another.

Charged with 14 counts of obtaining money by deception, she appeared via audio visual link from a Windsor correctional facility where she is serving a three-and-a-half year sentence on similar charges. Despite being due for release in May, McKittrick’s solicitor, watched on by her husband and daughter, applied for bail based on her deteriorating health.

“The conduct of the prosecuting authority in their extreme delay and the deterioration of her health [has lead us to] seek a permanent stay,” Mr Thomas said.

He described her custody conditions as “extreme” claiming the grandmother of one and wife of a retired police officer had been placed under protection.

“She has lived a long and productive life as a member of the community, there is no evidence that she is a career criminal.

“... She is definitely not a flight risk.”

Magistrate B Van Zuylen refused bail saying there were too many other factors at play.

The matter was adjourned to April 4.