The investor is one of 23 Jersey residents appearing as witnesses in the ongoing trial of Alternate Insurance Services, which previously traded in Broad Street, and its directors Robert Le Fustec and Douglas Clark.
The action has been brought by the Jersey Financial Services Commission, who allege that the defendants are not fit and proper to carry on financial services business.
The widow said that she had gone to see Mr Le Fustec in October 2001 about her income tax form.
But during the meeting he had explained the concept of a Traded Endowment Investment Portfolio Plan (TIPP) and the idea of using equity to finance further borrowing.
The investor told the court that although she was not a home owner, at the time she had two with-profits bonds worth in total £130,000, and it was this equity which Mr Le Fustec advised could enable her to borrow further and invest in a TIPP.
