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Ethics Board Docket No. 2022-444 <br /> Page 3 of 9 <br /> 5. <br /> During the years from 2012 through 2020, Karen Carter Peterson operated a scheme to <br /> misuse funds from her campaign account, as well as the Committee's campaign account. This <br /> scheme involved Karen Carter Peterson making expenditures from her campaign account and the <br /> Committee's account to associates who would subsequently remit a portion of those expenditures <br /> to her. Karen Carter Peterson used the remitted portion of the expenditures for personal uses <br /> unrelated to her campaign, including gambling. <br /> 6. <br /> From 2012 to March 2020, Karen Carter Peterson used the above-described scheme to <br /> divert approximately $137,000 of her campaign account and the Committee's campaign account <br /> for personal use. <br /> 7. <br /> Karen Carter Peterson resigned from her office of State Senator, 5th Senatorial District, <br /> effective April 8, 2022. <br /> 8. <br /> On March 25, 2022,Karen Carter Peterson reimbursed$137,000 to her campaign account. <br /> 9. <br /> On August 1, 2022, Karen Carter Peterson pled guilty to a violation of 18 United States <br /> Code Section 1343,relating to the misuse of her campaign account and the Committee's campaign <br /> account. On.January 11,2023,Karen Carter Peterson was sentenced to a prison term of 22 months, <br /> and ordered to pay a fine of $115,000 from her campaign account. Additionally, Karen Carter <br /> Peterson paid restitution of$53,106.93 to the Committee. <br />