Former Police Captain Charges Libel, Breach Of Contract

Michael Lacey says city fails to make payments under retirement agreement, unfairly criticizes him in press

The second of two captains who as part of Mayor Daryl Finizio’s transition into office has sued the city, charging that the city has failed to agree to the terms of the settlement.

Michael Lacey, 50, says in the suit that he has suffered “severe economic losses and mental anguish and emotional distress” as well as diminished pension benefits. Lacey also accuses the city of libeling him, saying the at Foxwoods Resort Casino did not accurately reflect his investigation.

William Dittman, another captain who retired from the police department, has . Dittman charges in this suit that the city made false representations to incite him to retire and was unable to meet the obligations set forth in the contract.

The city is also being , president of the New London Police Union. Lynch charges that Chief Margaret Ackley has acted in a retaliatory manner due to his public criticisms of her.

On three occasions, the City Council has for Dittman, Lacey, and Marshall Segar, the former deputy chief whose contract was also severed.

Breach of contract

Lacey, who is represented by attorney Morris J. Busca, said he had worked for the department since August of 1984 and became a captain in 1995. He said he was approached by city attorney Brian Estep and Personnel Coordinator Bernadette Welch on Jan. 5 to discuss a severance agreements.

Lacey said he had planned to stay with the department for 15 more years to enhance his pension benefits, but agreed to retire on the understanding that funding was available. The retirement agreement stated that it would pay Lacey for accrued compensatory, vacation, and sick time as well as 54 monthly payments of the difference between his salary and pension benefits through the Municipal Employees’ Retirement System. It also promised family health insurance, as provided in the union’s collective bargaining agreement, with no cost sharing through the end of January of 2017, at which point Lacey and his wife would be included on the city’s supplemental Medicare insurance until Lacey became eligible for Medicare.

Lacey said the checks from the city ceased on February 9.

The lawsuit names the city as well as Finizio, Welch, and Ackley in their individual and official capacities. It charges breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, violation of Connecticut wage laws, and negligent infliction of emotional distress.


The lawsuit also charges libel and a separate charge of breach of contract related to this accusation.

Lacey says he conducted an internal investigation into allegations against former police officer Joshua Bergeson, who was accused of slapping a woman at the Shrine nightclub at Foxwoods Resort Casino in April of 2009. Finizio fired Bergeson earlier this year, citing more recent incidents.

He said he also notified Welch and former city manager Martin Berliner about witness allegations of inappropriate behavior by former city councilor Michael Buscetto III. Lacey says Ackley “initiated her own personal and unauthorized investigation” into Buscetto and added information from this inquiry to Lacey’s file.

Lacey said he was not directed to investigate Buscetto, but that the additions to the file include accusations by Ackley that Lacey did not want to act on officer complaints about Buscetto. These included an e-mail concluding, “Based on the unsigned statement, missing statements, missing tape recordings etc. the investigation has the appearance of being tainted.”

Lacey says he complained to Welch after the statement appeared in the New London Patch and . He says Welch agreed to issue a retraction or clarification, which he saw on her computer, but that it was never sent out.

The second breach of contract charge says the city violated a section of the retirement agreement stating that neither Lacey nor the city would issue “false, negative or derogatory information” about either party.

Lacey is seeking the fulfillment of the retirement agreement plus interest, damages, and attorney’s fees, which he says will amount to over $15,000. He is also requesting a jury trial on the charges.

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Alan Green, Jr. April 10, 2012 at 12:05 AM
'False representations' and 'no one ever told me nothin' are the case these litigants have against the alleged 'libel'? Wouldn't officer Lacey have to show he ensured the investigation was thorough? If not him, who (in his command?) was charged with executing the investigation? Who was responsible then for the "unsigned statement, missing statements, missing tape recordings etc."? Or was this investigation and it's file just a figment of some poor prom queens's imagination? If I were on the jury, I'd want to know more about this. Again, it's too bad personnel issues become front page news. To Council: pay the guy! He's due. It's on you to work this out. And don't give me any of this 'save the Mayor's hide' stuff. From what I can see, he worked out a good deal - in good faith - and it's time for you guys to support him.
Ridden hard and put away wet April 10, 2012 at 03:37 AM
Alan, your comments are just idiotic.. At some point even you will have to admit this is all a failure. your chief is useless and has lied over and over. Sadly your mayor was quick to believe her lies and now is stuck with it. We all know she was asked to leave and refused and was left out of the decision making for the new deputy who will be announced shortly. It's not a mistake until you choose not to correct it. Well he will try but the state police investigation they asked for has back fired now that they know no drugs werent planted, shrine was political and outside her jurisdiction, the only corruption was her own and the NAACP has been allowed to continue dispite the chief knowing the hard working cops profile criminals not race. Please focus on something you know about and leave the law to the courts. The only question now is not if, but when. I do admire your willingness to go down with ship. Speaking of, maybe you can straighten out the opsail thing and get a second ship. (Eagle doesn't count since this is home, for now) Gosh, who could have seen this coming? oh ya, anyone who read the ship schedules or these posts months ago warning that the ships would be in Newport.
Alan Green, Jr. April 10, 2012 at 12:01 PM
You're right oh ridden one. I know little about courts - only stating my opinion. Sadly (I like that word, too), my attorney father never got the attorney son he desired. But what I'm curious about is, who's this 'we' you refer to? ('we all know'). And when will you be producing the transcripts of the conversations and findings you refer to? Asked to leave? Left out? Says who? And I find it interesting that you define shrine' as 'political'. Is that how the people who were supposed to be creating a file - supposed to be investigating the allegations of the young women - justified the file that was ultimately created (or not created)? Somehow, I don't see the testimony of the two officers as 'political'. Did either woman later deny the allegations? Or did some politically connected police officer(s) decide that these women didn't deserve a real investigation after certain council members and attorneys weighed in? Is inappropriate political pressure considered outside New London's jurisdiction? Perhaps in the past it was. I appreciate the attempt at an Opsail pun, but it's about as lame as your handle. And standing on the sidelines ridiculing people while they're working is kind of sad. I'm also curious as to whether that sideline is in New London or a neighboring town?
Kenneth R. Lewis April 10, 2012 at 12:39 PM
Alan Green Jr. Clearly you are a loner and have no sense of team or being part of something such as a union. These captains went outside the group to get a better deal for themselves, it was a gamble and it blew up in their faces. That is what happens when you step outside the group that you agreed to stand with through it all. But you do not get that.
Alan Green, Jr. April 10, 2012 at 12:44 PM
Kenneth - I do get that. What does it say about that 'team' when two vets of the force - senior ones - feel unsupported by that team? Just sayin... The rank and file of NLPD deserve a union that will support their interests. I don't see that they have that now. I will say, you did read me pretty well. I was never very good at team sports (too much pressure), opting instead for things like skiing, swimming, tennis, bike riding...
Kenneth R. Lewis April 10, 2012 at 12:52 PM
As an outsider who prefers to be an outsider you will always be treated as such. So do not whine accept your status and move on quietly. Putting yourself above the greater good and being selfish fits you, your mayor and his supporters quite well. The mayor has proven conclusively it is not about New London, it is not about the community, it is all about Daryl "Justme" Finizio. The moniker from the campaign days seems so very fitting in the light of days and actions post election. True colors are shown to the whole community.
Alan Green, Jr. April 10, 2012 at 01:02 PM
Thank you, Kenneth, for your personal insults. At least you're willing to put a face on the challenges the Mayor and those who support him are having to work with (or against?). Enjoy this beautiful day! As you say, I'm looking forward to being 'outside' today and would encourage everyone to do the same.
Get Real April 11, 2012 at 01:25 AM
The females you were refer too are police officers. Statements were posted on The Patch a while back....


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