A spokesman for Mahoney said no campaign or office funds were used for the payout.
Excerpts (with full story here):
Mahoney, who is married, also promised the woman, Patricia Allen, a $50,000 a year job for two years at the agency that handles his campaign advertising, the staffers said.
A Mahoney spokesperson would not answer questions about the alleged affair or the settlement, but said Allen resigned of her own accord and "has not received any special payment from campaign funds."
The affair between Mahoney and Allen began, according to the current and former staffers, in 2006 when Mahoney was campaigning for Congress against Foley, promising "a world that is safer, more moral."
The staffers say Mahoney first met Allen at a campaign stop and later arranged for her to work as a volunteer on the campaign. Allen also appeared in a Mahoney campaign television commercial, criticizing his opponent.
Following his election in 2006, Allen was hired, at taxpayers expense, to work on Mahoney's Congressional staff in Florida, at a yearly salary of $36,000.
After complaints about the affair circulated in Washington, Allen was moved to the campaign staff, the staffers say.
Friends of Allen told ABC News that Allen sought to break off the affair when she learned Mahoney was allegedly involved in other extra-marital relationships at the same time.
Her friends say she told them Mahoney threatened that ending the relationship could cost her the job.
"You work at my pleasure," Congressman Mahoney told Allen on a January 20, 2008 telephone call that was recorded and played for Mahoney staffers. ABC News was provided a copy.