Ex-Mayors gambling woes stun San Diego

[SaraTG]

SAN DIEGO (AP) — Maureen O'Connor was a physical education teacher who won a
seat on the San Diego City Council when she was only 25 years old, later winning
two terms as the city's first female mayor as she charmed voters with a populist
flair.

But her rapid rise was matched by her fall, culminating Thursday when she
acknowledged in federal court that she took $2.1 million from her late husband's
charitable foundation during a decade-long gambling spree in which she won — and
lost — more than $1 billion.

O'Connor pleaded not guilty to a money laundering charge in an agreement with
the Justice Department that defers prosecution for two years while she tries to
repay the foundation and receives treatment for gambling.

O'Connor, 66, once had a personal fortune that her attorney estimated between
$40 million and $50 million, inherited from her husband of 17 years, Robert O.
Peterson, founder of the Jack in the Box Inc. fast-food chain. She is now
virtually broke, living with a sister.

O'Connor walked across the courtroom with a cane, appearing frail and struggling
to maintain composure at one point as her attorney wrapped his arm around her
shoulder and placed his hand on her head.

At a news conference, she said she always intended to repay the foundation and
appeared to blame her behavior on a brain tumor that was diagnosed in 2011.

"There are two Maureens — Maureen No. 1 and Maureen No. 2," said O'Connor, who
declined to take questions. "Maureen No. 2 is the Maureen who did not know she
had a tumor growing in her brain."

O'Connor's game of choice was video poker at casinos in San Diego, Las Vegas and
Atlantic City, N.J. Her attorney, Eugene Iredale, said she played for hours at a
time.

She won about $1 billion from 2000 to 2009, according to winnings that casinos
reported to the Internal Revenue Service, but lost even more. Iredale said her
net gambling losses topped $13 million.

News of O'Connor's gambling troubles and financial ruin elicited sympathy in her
hometown. Magistrate Judge David Bartick told her that she left "a very strong
legacy in the city of San Diego."

The U.S. attorney's office said O'Connor's medical condition influenced the
decision to strike a deal, saying it may have been impossible to bring the case
to trial. The tumor was removed but doctors submitted letters detailing
significant ailments.

"Maureen O'Connor was a selfless public official who contributed much to the
well-being of San Diego," said U.S. Attorney Laura Duffy. "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."

O'Connor, the eighth of 13 children whose father was a boxer and nightclub owner
and mother was a registered nurse, was elected to the City Council three years
after graduating from San Diego State University. She was mayor from 1986 to
1992, San Diego's only Democratic leader over a four-decade span. She promoted
community policing, championed the arts and oversaw completion of a downtown
convention center.

O'Connor began gambling around 2001 as she struggled with pain and loneliness
from the death of her husband from leukemia in 1994 and the passing of several
close friends, said Iredale, who called it "grief gambling" in a court filing.
Within four years, she was betting heavily.

O'Connor acknowledged taking $2.1 million from the R.P. Foundation between
September 2008 and March 2009 to pay gambling debts, wager more and cover living
costs. She was one of three trustees of the foundation, a nonprofit organization
that supported the Alzheimer's Association, City of Hope, San Diego Hospice and
other charities.

Her annual gambling winnings peaked at more than $200 million, said Phillip
Halpern, an assistant U.S. attorney. Prosecutors said they didn't know exactly
how much she lost but that she also borrowed money from friends and sold
property to gamble.

O'Connor sold a home in tony La Jolla for $2.5 million in 2010 that is down the
street from former Republican presidential nominee Mitt Romney.

She also sold the Heritage House Hotel in the Northern California coastal town
of Mendocino for $7.5 million in 2005 to investors who defaulted, Iredale said.
She sued and plans to turn over any damages to repay the foundation.

[davidearl]

     Thanks for posting the article, Sara.       I was driving through West Virginia and saw a billboard for the Charles-town Casino. I wasn't going to stop, because I remembered how bad the pay tables were. I decided to stop to eat at McDonald's, so I took my computer with me and started looking up the casinos in WV, to see if anything changed.        I went to vpfree2.com, and there were no listings in WV. I thought this to be strange. The two new Hollywood casinos in OH are listed, even though the pay tables are so bad it says "nothing good" where the best pay tables are listed.    I then went to Casino City, and found the Charles-town Casino. It said the machines were Video Lottery Terminals. This means the payouts would be more like lottery payouts, 60-70%, depending on state law. Nowhere near the 95% suggested by the pay schedules on most video poker machines.    Hope you are doing well, and enjoying your vacation from casinos. Make it a permanent vacation from WV casinos!       Dave