Gutierrez, the Youngstown-area neighbor whom Dann hired as his $87,500-a-year general services chief, is accused of using state time and computers to run his private construction business, tapping Dann's campaign account for personal use, and lying on workers' compensation and financial-disclosure forms.

A Franklin County grand jury indicted Gutierrez yesterday on six felonies and four misdemeanors. There are two counts of unauthorized use of property; two counts of soliciting or receiving improper compensation; single counts of theft in office, engaging in prohibited activity and ethics violation for failure to disclose; and three counts of workers' compensation fraud.

If convicted, Gutierrez faces up to eight years in prison plus as much as $20,000 in fines.

Dann hired Gutierrez after taking office in early 2007 even though Gutierrez's background check uncovered 27 tax liens and civil judgments and a personal bankruptcy.

By all accounts, Gutierrez was not a model employee. He allegedly drove state vehicles while drunk, boasted of associations with organized crime and behaved boorishly toward female subordinates, particularly Cindy Stankoski and Vanessa Stout. The two filed sexual-harassment complaints that led to the firing of Gutierrez early last May and touched off a political firestorm that forced Dann, a Democrat, to quit on May 14, 2008.

Gutierrez declined to comment yesterday. His attorney, Sam Amendolara, did not return calls.

Dann also declined to comment yesterday.

Franklin County Prosecutor Ron O'Brien said he expects Gutierrez to make an initial court appearance on Monday.

"He has, I would say, to date cooperated in the investigation, and for that reason we will not request that a bond be set such that would keep him in confinement," O'Brien said.

Gutierrez, Amendolara and O'Brien had been discussing a plea deal for several months and, at one point, were so close that Gutierrez was prepared to come to Columbus to appear in court.

Negotiations fell apart, however, and O'Brien sought indictments from a Franklin County grand jury.

The charges mirror an investigation of Dann's office by Ohio Inspector General Thomas P. Charles and the Ohio Ethics Commission.

During an interview with Charles' staff last October, Gutierrez turned on his former boss, accusing Dann of numerous extramarital affairs and of using campaign funds to pay for a family vacation in Utah.

The theft-in-office count stems from allegations that Gutierrez used state property, equipment and employees to operate a private construction business on state time, O'Brien said. Gutierrez also allegedly used the state computer system to send false information about employees of the construction business to the Ohio Bureau of Workers' Compensation to get lower premiums.

The improper-compensation count involves free rent and utilities that Gutierrez allegedly received at a Dublin-area condominium and a residence in Victorian Village through Dann's campaign committee and former Dann aide Leo Jennings, O'Brien said.

The other two counts relate to money Gutierrez allegedly received from the campaign committee for personal use, as well as failure to report all sources of income on his financial-disclosure form with the Ethics Commission, including a $5,000 loan from Dann's transition committee, O'Brien said.

Gutierrez escaped criminal charges on a couple of the more serious allegations that came up in the multiple investigations of Dann's office: driving state vehicles while under the influence and crashing one, carrying a gun in a state car, and padding an invoice submitted for improvements to Dann's home and using the extra money to pay business debts. Dann is suing Gutierrez over the latter allegation, and Youngstown-area prosecutors might bring charges.

David Freel, executive director of the Ohio Ethics Commission, said attempts were made to interview both Dann and his wife, but they would agree only to respond to questions in writing. Investigators won't agree to those conditions, he said.

Ohio Republican Chairman Kevin DeWine issued a statement critical of Dann and Democrats' handling of the scandal.

"Ironically, Ohio Democrats said this would all be over when Dann left office, but this latest round of indictments proves they're wrong again."

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