A Cardigan woman accused of blackmailing a man in his eighties told the police he was "a dirty old man," a jury heard on Friday.
Linda Mary Thomas told the officers sent to arrest her that she had intended to contact them herself with a complaint of her own.
Thomas, aged 61, of Briscwm Cottage, St Dogmaels, has denied blackmailing the man, who cannot be named for legal reasons, out of £10,000 and of demanding a further £10,000.
The jury at Swansea crown court has been told that she threatened to make false claims about him unless he paid her.
Thomas is alleged to have told him that she would tell the police that he had touched her breasts, and that he became so frightened that he gave her £10,000.
Thomas is also alleged to have threatened to tell the police he had tried to rape her unless he paid her a further £10,000.
But staff at Lloyds in Cardigan became concerned about the amounts of cash he was withdrawing and contacted the social services, who called in the police.
The jury heard today about what Thomas told the police after she had been arrested.
"I think he's madly in love with me. I think he needs company more than anything.
"He's touched me but that was ages ago and I just brushed it off.
"I feel sorry for him.
"There is no way I have had money off him in that way."
Detectives told Thomas they had CCTV footage showing the man handing her a package, which the prosecution claim contained £2,000. She said he had given her vegetables, not money.
"I'm shocked that he said that about me. I think he's having a breakdown," she added.
The jury heard that despite four police officers searching her home no sign of the £10,000 was ever discovered.
The trial continues. The jury will retire on Monday to consider their verdict.