LEBANON — City Manager James Patrick was indicted Friday in connection with early-retirement buyouts three former employees took 1 1/2 years ago.

        The three — former City Attorney Bill Duning, City Auditor Debbie Biggs and Deputy Electric Department Director Robert Newton — also were indicted by a Warren County grand jury Friday.

Patrick

        The city manager is charged with four felony counts of aiding and abetting “an alleged scheme” by Mrs. Biggs and Mr. Duning to steal more than $300,000 from the city, Special Prosecutor Patrick Hanley said. Mr. Patrick faces up to five years in prison and a $10,000 fine if convicted.

        Mr. Patrick, 50, was not at work Friday and no one answered at the home he shares with his wife and two children. A for-sale sign stood in the front lawn of the two-story brick home.

        In late 1999, Mrs. Biggs and Mr. Duning took early-retirement buyouts offered to electric department employees despite not working directly for the department. Council members, upon learning of the buyouts in January 2000, said they did not approve — or even know about — them.

        Mr. Patrick initially said applications for the buyouts should have come to him or council, but in early February admitted to the Enquirer that he had known about them.

        Mr. Duning voluntarily returned the $206,302 the city had paid the Public Employees Retirement System on his behalf, and PERS elected to return the $110,565 paid toward Mrs. Biggs' retirement.

        The two were indicted Friday on one count each of theft in office, having an unlawful interest in a public contract, and conflict of interest. They also face a maximum penalty of five years in prison and a $10,000 fine.

        Mr. Duning said he will plead not guilty. Mrs. Biggs had no comment Friday.

        Mr. Newton has retained his $169,549 but, like Mr. Patrick, was indicted Friday on charges of helping Mrs. Biggs and Mr. Duning commit theft in office. His attorney had no comment.

        The indictment of Mr. Patrick could cause the most turmoil for this central Warren County city of 15,000.

        The retired Army officer has often come under political fire during his two years in Lebanon, and Councilman James Reinhard already is suggesting he should resign or be put on administrative leave.

        “I know myself if I had been indicted for something, I would resign,” Mr. Reinhard, a longtime Patrick critic, said Friday. “I wouldn't want to embarrass the city.”

        Several other council members, taken by surprise by the news, had no comment on what the next step might be. City Attorney Mark Yurick said there is no legal requirement that Mr. Patrick step down.

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