After Allen was fired, the 50-year old single mother of two hired a lawyer, Gregory Coleman, and threatened to sue the Congressman for more than a million dollars.
Coleman, of the West Palm Beach firm Burman Critton Luttier & Coleman, also served as an attorney for former Congressman Foley. Calls to Coleman, and the lawyer for Mahoney, Gary Issacs, were not returned.
In a February letter to Mahoney, Coleman alleged sexual harassment, intimidation, humiliation and charged that the Congressman's behavior masked a "dark and depraved personality," according to people who have seen the letter.
Following a day-long mediation session in March, Mahoney agreed to a settlement, staffers said.
Mahoney reportedly insisted that Allen destroy all audio and video recordings of a sexual nature, they said.
Allen is also prohibited from working for Mahoney's opponent or any political candidate this election year, according to people familiar with the agreement.
In addition to the $61,000 payment, Mahoney agreed to pay $60,000 in legal fees to Allen's lawyer, they said.