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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 will also receive treatment for her gambling addiction, prosecutors say. 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 after her husband's death around 2001 and over the course of four years developed into an addiction, the Associated Press reported. 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.
But between September 2008 and March 2009 she embezzled more than $2m from her husband's organisation and, despite taking in some significant winnings, she "threw good money after bad" and continued to gamble, prosecutors said. 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.