Ex-San Diego mayor's gambling wagers top $1B

"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 could face a maximum sentence of 10 years in prison if convicted on one count of engaging in monetary transactions in property derived from unlawful activity. 

Iredale said O'Connor lost several properties, including one in tony La Jolla down the street from a home of 2012 Republican presidential nominee Mitt Romney that sold for $2.5 million in 2010. 

She is now living with a sister. 

"She's embarrassed, she's ashamed, she's afraid," Iredale said. 

O'Connor 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 has pledged to turn over any damages she wins to repay the foundation.