Los Angeles, California (CNN) -- A Los Angeles County grand jury has indicted the former city administrator of Vernon, California, an industrial city that borders scandal-plagued Bell, on three felony counts after an investigation into questionable business practices. Court documents show that Donal O'Callaghan has been indicted on two counts of conflict of interest and a count of public officer crime related to the misappropriation of public funds. The Los Angeles County District Attorney's Office says the counts against O'Callaghan, 54, involve an alleged misappropriation of more than $140,000. "The law prevents public officials from making contracts the have a personal interest in and Mr. O'Callaghan made a contract that paid his wife money," said deputy District Attorney Max Huntsman. "We're alleging he paid her more than $140,000."
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NEW: Accused pleads not guilty
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O'Callaghan was city administrator in Vernon in Los Angeles County
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A grand jury was looking at his business deals with his wife
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County on a corruption witch hunt, Donal O'Callaghan's lawyer says
"The fact that it coincides with criminal charges against officials in @placeholder has to do with raised public awareness about corruption in municipal governments."