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Ex-US mayor Maureen O'Connor 'gambled stolen millions' | Ex-US mayor Maureen O'Connor 'gambled stolen millions' |
(35 minutes later) | |
A former mayor of San Diego has agreed to repay millions of dollars pilfered from her late husband's charity to fuel a gambling addiction, prosecutors say. | A former mayor of San Diego has agreed to repay millions of dollars pilfered from her late husband's charity to fuel a gambling addiction, prosecutors say. |
Maureen O'Connor, 66, mayor from 1986 to 1992, struck a deal with prosecutors to pay $2m (£1.3m) in restitution and to settle tax liability. | Maureen O'Connor, 66, mayor from 1986 to 1992, struck a deal with prosecutors to pay $2m (£1.3m) in restitution and to settle tax liability. |
She must also receive treatment for her gambling addiction, prosecutors say. | |
If she meets the conditions of the deal, prosecutors say they will drop a criminal case against her in two years. | If she meets the conditions of the deal, prosecutors say they will drop a criminal case against her in two years. |
Federal prosecutors said Ms O'Connor suffered a range of health problems following the removal of a brain tumour in 2011, and all parties agreed she would not be well enough to stand trial. | Federal prosecutors said Ms O'Connor suffered a range of health problems following the removal of a brain tumour in 2011, and all parties agreed she would not be well enough to stand trial. |
"However, no figure, regardless of how much good they've done or how much they've given to charity, can escape criminal liability with impunity," US Attorney Laura Duffy said. | "However, no figure, regardless of how much good they've done or how much they've given to charity, can escape criminal liability with impunity," US Attorney Laura Duffy said. |
Ms O'Connor was married to Robert Peterson, founder of fast food chain Jack in the Box. He created a charitable foundation before he died in 1994, court documents show. | Ms O'Connor was married to Robert Peterson, founder of fast food chain Jack in the Box. He created a charitable foundation before he died in 1994, court documents show. |
Friends say Ms O'Connor's "grief gambling" began around 2001 and over the course of four years developed into an addiction, the Associated Press reported. | |
'$1bn won' | '$1bn won' |
Her preferred game was video poker. | Her preferred game was video poker. |
Prosecutors say that between 2000 and 2009, Ms O'Connor won more than $1bn in casinos in Las Vegas, San Diego and Atlantic City, but took even bigger losses. | Prosecutors say that between 2000 and 2009, Ms O'Connor won more than $1bn in casinos in Las Vegas, San Diego and Atlantic City, but took even bigger losses. |
She mortgaged or sold most of her assets to pay off her debts and to continue gambling. | She mortgaged or sold most of her assets to pay off her debts and to continue gambling. |
Between September 2008 and March 2009 she embezzled more than $2m from her late husband's organisation and, despite taking in some significant winnings, she "threw good money after bad" and continued to gamble, prosecutors said. | |
The foundation was eventually forced into bankruptcy in April 2009. | The foundation was eventually forced into bankruptcy in April 2009. |