Ex-mayor's USD 1 billion gambling losses stun US city

San Diego, Feb 15 (AP) The gambling losses reached more than USD 1 billion. The former mayor of a major US city appears to blame the spree on a brain tumor. Maureen O'Connor acknowledged in federal court yesterday that she took USD 2.1 million from her late husband's charitable foundation during the decade-long gambling binge. O'Connor, former mayor of San Diego, 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. "There are two Maureens Maureen No. 1 and Maureen No. 2," O'Connor told a news conference. "Maureen No. 2 is the Maureen who did not know she had a tumor growing in her brain." The tumor was diagnosed in 2011. O'Connor, 66, once had a personal fortune that her attorney estimated between USD 40 million and USD 50 million, inherited from her husband, 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 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 her attorney, Eugene Iredale. He called it "grief gambling" in a court filing. O'Connor won about USD 1 billion from 2000 to 2009, according to winnings that casinos reported to the Internal Revenue Service, but lost even more. The US 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."(AFP) AJR NKP NKP 02152029 NNNN