Whipped Cream Difficulties

Former San Diego Mayor Maureen O’Connor acknowledged in federal court Thursday that she gambled away millions of dollars that her late husband had earmarked for charity purposes.

Ms. O’Connor is getting a “deferred prosecution” deal.

Under a bargain with prosecutors, O’Connor agreed to make $2 million in restitution; if she violates no further laws in the next two years, the charge may be dismissed.

What happened? O’Connor’s husband was Robert Peterson, founder of Jack in the Box who “made a fortune in the restaurant, hotel and banking industries”. So she had money. LOTS of money.

O’Connor is destitute after gambling away $1 billion at casinos in the San Diego area and Las Vegas and Atlantic City from 2000 to 2009, according to prosecutors. She has admitted having a gambling addiction, prosecutors said.

Yeah, you read that right. She gambled away One. Billion. Dollars. That’s $100 million a year, or $8.3 million a month.

Anyway, when she ran out of money, she took money from the charitable foundation her husband started, which is now defunct because she stole the money.

O’Connor, who underwent surgery to remove a brain tumor in 2011, used a cane and needed help walking as she entered the courtroom of federal Judge David Bartick. In her youth, she had been a star swimmer and later a physical education teacher before being elected to the City Council in 1971 as a maverick Democrat.

So other than the question of exactly how you gamble away $100 million a year, and how you do that for ten years without realizing you have a problem: how exactly is a destitute 66-year-old woman who needs help walking supposed to pay back $2 million? (The late Mr. Peterson’s Wikipedia entry says he had four kids from a previous marriage, but apparently none with O’Connor.)

I was out of pocket for much of the day Tuesday, which is why I didn’t update. Oddly, there seems to be a gap in the trial coverage on the LAT site: if anything did happen Tuesday, the paper didn’t report it.

As far as yesterday’s testimony: indicted former councilman George Mirabal was back on the stand.

“Did you specifically ask Mr. Lee, ‘Can I get this salary?’”
“No.”
“Why not?”
“Because he was in charge of maintaining surveillance on all these type of actions,” Mirabal said. “His firm was getting like $13,000 a month, the least he can do is look at all the resolutions and various ordinances.”

(Mr. Lee is Ed Lee, who was Bell’s city attorney.)

Also on the stand: Annette Peretz, Bell’s former director of community services. Her salary was $273,000 a year when she retired in 2010.

Attorneys have a saying: “Never ask a witness a question that you don’t know the answer to.” In that light, this exchange is…interesting.

The court received a jolt, though, when Deputy Dist. Atty. Edward Miller opened his cross-examination by asking: “Were you Robert Rizzo’s girlfriend?”

The judge ruled that Peretz did not have to answer that question, and Peretz also declined comment to reporters.

I can’t find a photo of Peretz, but as a reminder, this is Robert “Ratso” Rizzo:

Peretz also testified as, basically, a character witness for indicted council member Teresa Jacobo, saying “she often saw Jacobo meeting with residents at the community center and visiting senior housing facilities.”

Peretz, who took a $95,000 city loan from a program Rizzo developed, filed a lawsuit against Bell for retirement and medical benefits. A judge ruled for the city earlier this month. Rizzo is charged with illegally loaning out city money.

Also testifying as witnesses for Jacobo: two of her daughters, and “a woman who lives in one of Bell’s mobile home parks”:

Candalaria Ramirez said Jacobo was a trusted, frequent visitor who responded to residents and was instrumental in firing the management company that residents had complained was mistreating seniors and had racist employees.