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Kevin O'Leary Mum on Fatal Boat Crash ... Wife Gets Big Break in Case

Kevin O'Leary arrived in L.A. Monday night, and he has reason to breathe a sigh of relief, because prosecutors have backed off their claim his wife could be jailed over their fatal boat crash.

Kevin arrived at LAX and didn't want to talk about the case much -- where his boat slammed into another boat on a Canadian lake in total darkness. Two people in the other boat were killed. Prosecutors filed a charge against the driver of the other boat for not having its navigation lights on. Kevin's wife, Linda, was also cited for driving too fast.

Prosecutors have now admitted they were flat-out wrong when they told us Linda faced a maximum of 18 months in prison and a $1 million fine if convicted. We contacted prosecutors and said our reading of the law was different and clear ... that she only faced a $10,000 fine and no jail time. Now they've admitted, they were wrong -- the max is indeed a $10k fine.

Linda's in court Thursday. We're told she plans to fight the charge, claiming she was not going too fast.

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