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San Diego

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Welfare fraud charges against Charolette E. Olson, accused of receiving about $77,000 in illegal Medi-Cal benefits for her disabled daughter, have been dropped. Olson, 25, is the companion of San Diego restaurateur Paul Dobson.

Olson’s attorney, Barry Utsinger, said prosecutors agreed to drop the charges Tuesday after she paid $30,000 to the county Department of Health Services. Department officials had said Olson committed fraud by failing to report that she was living with Dobson, the father of her disabled 2-year-old daughter.

County officials said Olson should have reported that she was living with the child’s father, so Dobson’s income could have been used to calculate benefits for the girl. Dobson was not charged.

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Utsinger said the child is blind in one eye, legally blind in the other and has developmental problems.

Utsinger said there was no admission of guilt by Olson.

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