COP: $1K FROM DEALERS PAID COSTS

The detective at the center of a growing investigation of the Ludlow Police
Department testified under oath Tuesday that $1,000 payments demanded as
part of plea agreements with suspected drug dealers were sought to help
defray the department's costs of investigating drug trafficking. Detective
Bill Schilling, in his first public comments on the issue, testified that
the costs included police officers' time responding to calls, logging
evidence, questioning witnesses and transcribing statements. It also was to
help pay for one officer to attend classes to help him identify marijuana,
Schilling told Kenton District Judge Doug Grothaus.

"This was an investigative tool we were using in our investigation into
drug trafficking in the Northern Kentucky area" said Schilling, who was
advised by Grothaus before taking the stand of his right against self
incrimination and to have legal representation.

Schilling, who said he had retained an attorney, said he wanted to turn
suspects into confidential informants who would buy and sell drugs for police.

"That was our intent, to get drug traffickers off the street," he said.

"But you're not," responded a skeptical Grothaus, noting that the deals
included dropping felony charges to misdemeanors and not seeking jail time
against those arrested.

State police already are investigating allegations that Ludlow police
improperly sought the cash payments as part of plea agreements with people
arrested on drug charges. State investigators also are looking into the
role of the commonwealth attorney's office, because police are not
authorized to make such plea deals.

Either Kenton Commonwealth Attorney Bill Crockett or one of his assistants
would have had to approve any such agreement. At least two have been
approved, although Crockett said he believed the payments requested were
actually cash already seized and about to be forfeited.

Crockett has said he never authorized any agreement in which defendants
would reimburse police for the cost of an investigation.

Grothaus conducted his hearing in an attempt to determine whether the
Ludlow department and its chief, Ray Murphy, sought a bribe in return for
recommendations to reduce charges in three cases that came before him last
month.

At that time, Edward Elmore -- who faced felony drug charges -- told
Grothaus that Murphy offered to have his charges disappear for $1,000.
Elmore said the offer was made to his attorney, Brad Braun. A shocked
Grothaus rejected a separate plea agreement and ordered all the parties to
return to court Tuesday.

After putting Braun under oath, Grothaus ordered him to testify about any
discussions he had with Murphy. Braun, citing attorney-client privilege,
refused to do so, even when Grothaus threatened to hold him in contempt.

Grothaus then called Murphy, also advising him of his right to remain
silent and have a lawyer with him. Murphy said he had hired an attorney,
but wanted to testify to "tell the truth."

Murphy also said the money would be used to help pay for the investigation.
He said Schilling came up with the figure, basing it on how much time
officers had spent on the case.

Grothaus wanted more information on how police arrived at the figure.

"Is there a rational basis between the $1,000 and the time spent?" he asked.

After the hearing, Grothaus once again delayed considering the charges
against Elmore and two co-defendants. He said he didn't know whether he
should accept plea bargains in the cases, or force the commonwealth
attorney's office to prosecute it as a felony, even though one assistant
said the evidence was too weak to take to a grand jury.