CHIEF ACCUSED OF MISUSING FUNDS

2 Other Officers Punished In Lancaster Police Query

LANCASTER, Ohio -- Police Chief Richard Schwader faces 53 ethics charges
for allegedly misusing police funds and equipment that were intended to
help fight drug crimes.

Two others in the department are being reprimanded in connection with the case.

City Law Director Terre L. Vandervoort announced the charges yesterday and
said Schwader's case will be sent to the Fairfield County prosecutor for
possible criminal charges.

Schwader is accused of using police funds to buy paintball guns, a computer
and a camera, and of keeping an M-16 rifle for personal use, Vandervoort said.

Schwader will go before city Safety Director Earl Strawn in a disciplinary
hearing on Tuesday. If found in violation of departmental regulations,
Schwader faces punishment from a written reprimand to dismissal.

Reached at home last night, Schwader refused to comment.

Deputy Police Chief Jeff Gerken and Patrolman Kevin Everhart, both of the
detective bureau's narcotics unit, waived their right to hearings and were
reprimanded yesterday by Acting Police Chief Randall L. Lutz.

Gerken, who was charged with four violations, was given a written reprimand
and a three-day suspension without pay. Everhart, who was charged with
three violations, was given a written reprimand and a four-day suspension
without pay, and was told to repay the city $200 he misplaced in February 1999.

Gerken and Everhart could not be reached for comment.

All three men have been on administrative leave since April 10.

Schwader and Gerken were among 40 of the city's 57 police officers who
signed a letter in February to Fairfield County Sheriff Gary DeMastry,
asking him to step down because of the 323-count indictment returned
against him and others in his department.

DeMastry, his wife and three deputies were indicted on charges involving
the sheriff's Furtherance of Justice fund. Their cases are pending.

Vandervoort said the investigation into the police department came about
because of the DeMastry query.

She said the charges against Schwader, Gerken and Everhart stem from the
department's use of the city's Furtherance of Justice and drug-forfeiture
funds, which typically are spent on undercover operations.

In 1999, there was $75,000 in the Furtherance of Justice fund.

Schwader allowed police funds to be used to rent an apartment from another
officer, Vandervoort said, and allegedly appropriated thousands of dollars
worth of police equipment for his personal use.

Gerken was charged after he rented his apartment to the police department,
she said, and Everhart did not keep proper records for the department funds
used to pay the rent.

Although the apartment was wired and used by narcotics officers for drug
enforcement, city rules forbid employees from doing business with city
agencies.

Vandervoort stressed that the charges do not involve theft of department
funds. "There is no missing money,'' she said.

However, Vandervoort said Schwader allowed police officers to reimburse
themselves for meals and other personal expenses without maintaining
receipts, and that some travel reimbursements were made at higher levels
than allowed for other city employees.

Earlier, State Auditor Jim Petro looked into the department's use of the
funds and found nothing wrong.

According to the charges, Schwader tried to deceive city Safety Director
Strawn concerning a Pentax camera he bought for $759 with department funds
but kept at his home for personal use.

Paintball guns, bought with department money for about $1,700, also were
kept by Schwader for personal use, as were several department weapons,
including an M-16 rifle, Vanderwoort said.

The charges also allege that Schwader tried to deceive city officials about
the purchase of equipment, including a $2,300 computer, with Furtherance of
Justice fund money.

He also is charged with not telling Strawn the complete truth concerning
the purchase of a video camera and misleading him about gasoline purchases.

City Councilman Steve Davis said he was "angry and embarrassed'' by the
charges that come while the city is strapped for cash and the department is
short of officers.