Ex-O.C. Official Pays $8,500 to Settle Lawsuit

The former head of Orange County’s retirement system paid $8,500 to settle a lawsuit filed by prosecutors Tuesday alleging that she violated conflict-of-interest rules and underreported gifts during her nine-year tenure.

The settlement ends a three-year investigation by the district attorney’s office that found that Mary Jean Hackwood accepted $3,400 in meals from Boatman’s Trust Co. between 1993-95 but only reported $280. The company was a custodian of the retirement fund.

Prosecutors also alleged in their lawsuit that Hackwood underreported the amount of gifts she received from Boston Partners Asset Management by about $500.

In addition, the suit charged that she violated state law by making decisions involving the companies even though she had accepted gifts beyond the allowed $280 threshold.

“Public officials must disclose gifts and income to allow the public to evaluate the official’s conduct,” said Orange County Deputy Dist. Atty. Guy Ormes. “When that breaks down, as we allege it has here, there must be some ramifications.”

Hackwood could not be reached for comment. A statement released by the district attorney’s office Tuesday said Hackwood disputed allegations that she underreported meals from Boatman’s Trust.

Ormes said the lawsuit was filed and settled on Tuesday after talks with Hackwood’s lawyer.

Prosecutors decided not to file criminal charges because they found no evidence that Hackwood had given favorable treatment to the companies in question, he added.

Ormes said the maximum penalty under the civil lawsuit was $13,000.

Hackwood was fired from her $97,760-a-year job in 1996 after being accused of abusing her authority by charging personal phone calls to the county.

She was also accused of forcing employees to run personal errands, such as wrapping her Christmas presents, washing her car and dropping off her laundry.

She denied any wrongdoing.