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Grand Jury Indicts Vernon's Former City Manager

LOS ANGELES (AP) — A Los Angeles grand jury has indicted the former city manager of Vernon on conflict of interest and misusing public money charges.

The three-count felony indictment against Donal O'Callaghan was unsealed Tuesday in Los Angeles. A grand jury had been investigating O'Callaghan amid questions concerning a contract between the city and his wife's energy company.

The indictment alleges he "became financially interested" in a contract he made in an official capacity. It also alleges he used more than $65,000 of public money for personal uses.

O'Callaghan pleaded not guilty.

The Los Angeles Times reported in August that O'Callaghan received $243,898 in consulting payments from the company, on top of his $380,000 annual salary.

O'Callaghan, who was placed on leave in August, resigned last week.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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