A Monroe County Sheriff’s deputy, who alleged in a lawsuit that the jail operation was beset by corruption, has received a $200,000 settlement to resolve the lawsuit.

The county paid another $240,000 to an outside law firm which handled the litigation, which was settled last year.

The county paid the settlement to Deputy Thomas Zembiec, county officials confirmed today.

In a 2004 lawsuit, Zembiec alleged that jail payrolls were falsified so workers were paid for time they didn’t work; that some jail workers possessed and used drugs; and that some high-ranking officials and other jail workers consorted with "temporarily released inmates and persons with criminal backgrounds in order to make money and receive free services."

Zembiec alleged that he was transferred from his job at the downtown jail to the Brighton facility to silence his complaints about corruption at the jail.

He claimed that two nurses at the downtown jail accused him of sexual harassment, and those charges were the official reason for his transfer.

A judge has ruled that there was not enough probable cause to allow recording of a conversation between an undercover police officer and a defense lawyer as part of an obstruction of justice investigation.

Some attorneys across the state were concerned about the case, worried it could impinge on their ability to effectively represent their clients.

The matter sprang from a domestic assault case involving defendant Terry Russ. After police had trouble locating witnesses in the case, including the victim, they initiated an obstruction of justice investigation. Russ eventually entered into a plea agreement.

But because of telephone conversations between Russ and his mother, Brattleboro police apparently suspected that his lawyer, Eileen Hongisto, may have been involved in the matter as well. Police obtained a warrant allowing an undercover detective to call Hongisto and, taping the conversation, pose as a witness asking if he should testify.

No charges were ever filed against Hongisto over the case.

This week Judge Karen Carroll of Windham District Court ruled that warrant should never have been issued and ordered that the tapes of the conversation be returned to Hongisto.

"A review of the affidavit in support of the search warrant in this matter reveals that it lacked the necessary probable cause to support the belief that Ms. Hongisto was involved in criminal activity or that evidence of a crime would be obtained through a phone call to her by an undercover police officer," according to the ruling.

The judge who issued the warrant, Katherine Hayes, recused herself from ruling on Hongisto's motion that sought the tapes of the conversation.

"I feel totally vindicated," Hongisto said Friday. "I hope by going as far as we did go with this that we protected defense attorneys."

"I knew I hadn't said anything wrong or done anything wrong, but I needed to have the public know that as well," she said.

Hongisto said she is not sure if she will file a civil lawsuit in the matter.

"I haven't thought that far ahead at all," said Hongisto.

Windham County State's Attorney Dan Davis said he did not see the warrant request before it was presented to the judge originally and his office will not appeal the decision reached by Judge Carroll on Tuesday.

"We have followed the judge's direction and returned the audio tapes to attorney Hongisto," he said.

Allegations of a crime must be investigated whether the accused is a lawyer or not, Davis said.

"If, in fact, there is an allegation that someone may be involved in violating the law, that matter ought to be looked into," he said.

But the investigation and tape recording of a conversation with a defense lawyer is unusual, he added.

"This is a very rare event," he said. "This is the only time I am aware of in my 32 years in law enforcement in the state … that this has happened."

Defender General Matthew Valerio said the judge's decision this week was the correct one.

"It vindicates Eileen Hongisto and it frankly supports my opinion and the opinion of many defense counsel that there wasn't probable cause to support the warrant," Valerio said.

"I never got the sense that people were going to practice law defensively" because of the case, he said. "It's not a dimmer switch. You either do it or you don't do it."

As for Hongisto, she said she will continue on in her general law practice.

The danger in the case for the practice of defense lawyers was that they would be blocked from advising their clients about the status of their cases, said Hongisto, who graduated from Vermont Law School and worked as a public defender before going into private practice.

"You wouldn't be able to give accurate and sound legal advice to your client," she said. "If you are not allowed to discuss those options with your client, how can they make an informed and voluntary decision."

A State Department press release late yesterday afternoon said only he was leaving for "personal reasons".

On Thursday, Tobias told ABC News that he had several times called the "Pamela Martin and Associates" escort service "to have gals come over to the condo to give me a massage".

Tobias' private cell number was among thousands of numbers listed in the telephone records provided to ABC News by Jeane Palfrey, the woman dubbed the "DC Madam", who is facing the federal charges.

In an interview to be broadcast by the network next Friday, Palfrey says she intends to call Tobias and a number of her other prominent DC clients to testify at her trial. 

US Sen. Frank Lautenberg (D-NJ) Thursday introduced a bill to restrict gun sales to terror suspects. S. 1237 would give the US attorney general the power and discretion to block gun sales to people listed as suspected terrorists. Under the bill, potential buyers who were denied firearms could appeal that decision to the attorney general. The bill has been endorsed by the Department of Justice, although DOJ leaders stressed that there still might exist situations in which suspected terrorists would be allowed to purchase guns, for example if denying a suspect a gun would tip them off that they were under investigation and would thus hamper intelligence gathering.

Under current law, terrorism suspects can still buy firearms if background checks show they are not convicted felons, illegal immigrants or suffering from mental illness.

"Paul's breadth of experience at both the trial and appellate levels, and his invaluable experience with the Senate Judiciary Committee are a wonderful addition to our practice," commented Bobby Burchfield, co-partner-in-charge of the Washington, D.C. office.

While working for Senator DeWine, Mr. Thompson handled a number of high-profile matters.  He served as lead counsel during the Senate confirmation hearings for both Chief Justice John Roberts and Justice Samuel Alito, the reauthorization of the USA PATRIOT ACT, the passage of the Military Commissions Act (2006), and legislation concerning the National Security Agency's warrantless surveillance program.

From 2002-2005, Mr. Thompson was an Assistant U.S. Attorney in the Appellate Section of the U.S. Attorney’s Office in Pittsburgh, Pennsylvania, where he served as Ethics Advisor, Professional Responsibility Officer, and Acting Chief of the Appellate Section.  During his time with the U.S. Attorney's Office, Paul represented the government in more than 80 criminal and civil appeals before the United States Courts of Appeals and dozens of matters in the United States District Courts.

From 2000-2002, Mr. Thompson served as a law clerk to the Honorable D. Brooks Smith, former Chief Judge of the U.S. District Court for the Western District of Pennsylvania and current member of the U.S. Court of Appeals for the Third Circuit.  He received his J.D. from Harvard Law School, magna cum laude, and his A.B., magna cum laude, Phi Beta Kappa, from Harvard College.

McDermott’s Washington, D.C. office, founded in 1978, has become a full-service location with more than 200 lawyers practicing in a host of areas that include multinational corporations, government and political institutions, environmental agencies, international organizations and high technology companies.  McDermott's Trial Department is well-known for providing clients with a unique blend of trial skills and substantive experience which can be effectively used in the many areas of law and business where disputes arise.

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Wall Street paused Thursday, with stocks little changed as strong profit reports from names like Apple Inc. and 3M Corp. failed to galvanize the market a day after the Dow Jones industrials crossed 13,000. Still, a modest advance in the Dow gave the blue chips another record close.

Investors often tread water and reassess valuations after stocks push through technical or psychological barriers such as the Dow's ascent past 13,000 Wednesday. Beyond the Dow's move, investors were also keeping watch over the Standard & Poor's 500 index, which has in recent sessions crept closer to its high of 1,527.46, reached in March 2000.

Better-than-expected profit news, which helped vault the Dow into record territory Wednesday and to a new trading high Thursday, continued but with less effect than in the previous session.

Apple said its fiscal second-quarter profit rose 88 percent amid robust sales of iPods and Macintosh computers. Reports from Dow component 3M and automaker Ford Motor Co. also pleased investors.

"Once you go through what people consider a milestone you are often going to have a little rest," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "Earnings are lending support to the market. Obviously, there are some disappointments, but they're much above what people were expecting."

The Dow rose 15.61, or 0.12 percent, to 13,105.50 after hitting a fresh trading high of 13,132.80. Thursday marked the Dow's 18th rise in the past 20 sessions and its 36th record close since the start of October. The gains Wednesday and Thursday left the Dow up more than 5 percent for the year.

Broader indexes ended mixed Thursday. The Standard & Poor's 500 index slipped 1.17, or 0.08 percent, to 1,494.25, while the Nasdaq composite index rose 6.57, or 0.26 percent, to 2,554.46.

Bonds fell amid the continuation of strong earnings reports. The yield on the 10-year note rose to 4.69 percent from 4.65 percent late Wednesday.

The Dow swept past its latest milestone Wednesday amid better-than-expected earnings and economic data. But the question on investors' minds is whether upcoming data will prove the market's recent rally was justified, or overdone.

While the economic calendar is busier next week, Kiddoo contends earnings will continue to drive stocks until midweek or so when investors begin to focus on the governments employment report, due to arrive May 4.

So far, 22 of the 30 Dow components have reported earnings, with 16 of those reports topping expectations. Dow component Exxon Mobile Corp. released better-than-expected earnings Thursday; it rose 63 cents to $80.55. Microsoft Corp.'s fiscal third-quarter results, which the company announced after the closing bell Thursday, also came in ahead of expectations. Microsoft finished up 11 cents at $29.10 and rose in after-hours electronic trading.

In other corporate news, Apple's profit report beat analysts' estimates, and the stock at times surpassed $100 a share. Apple closed up $3.49, or 3.7 percent, at $98.84.

3M, whose products include Scotch tape and coatings for flat-panel televisions, reported a stronger profit than Wall Street predicted, sending the stock up $3.48, or 4.5 percent, to $80.45. Ford, meanwhile, reported a narrower-than-expected loss for the first quarter. Ford rose 32 cents, or 4.1 percent, to $8.20.

Wendy's International Inc. said late Wednesday it is considering a possible sale of the company, among other options. The burger chain rose $5.31, or 16.3 percent, to $37.99.

Covansys Corp. rose $6.49, or 24.2 percent, to $33.29 after the provider of information-technology services agreed to be acquired by Computer Sciences Corp. for $1.3 billion. As is typical of companies announcing acquisitions, Computer Sciences slipped 14 cents to $55.83.

Harman International Industries Inc., which makes audio equipment, agreed to be taken private in an $8 billion deal. The company, which also said its fiscal third-quarter profit rose 11 percent, jumped $19.94, or 19.4 percent, to $122.50.

A light flow of economic news Thursday didn't appear to hold much sway over stocks. Among the reports, the Labor Department said applications for jobless benefits fell last week by 20,000, the biggest decrease in nearly two months.

Federal Reserve banks in Chicago and Kansas City said manufacturing activity rose in their respective regions.

Friday will bring more weighty data for investors, who are particularly interested in the Commerce Department's initial estimate of first-quarter gross domestic product.

Gold fell on Thursday, while the dollar was mixed against other major currencies.

Light sweet crude settled down 78 cents at $65.06 per barrel on the New York Mercantile Exchange.

Declining issues outpaced advancers by about 9 to 7 on the New York Stock Exchange, where consolidated volume totaled 3.14 billion shares, compared with 3.17 billion traded Wednesday.

Overseas, Japan's Nikkei stock average rose 1.12 percent. Britain's FTSE 100 closed up 0.12 percent, Germany's DAX index rose 0.60 percent, and France's CAC-40 ended down 0.05 percent.

But he made clear that if Democrats insist on including timetables again, he will not hesitate to bring out his veto pen.

"If they want to try again that which I've said is unacceptable, of course I won't accept it,'' the president said during a news conference here with Japanese Prime Minister Shinzo Abe. "I hope it won't come to that.''