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GREENSBORO - The veteran commander who was former police Chief David Wray's right-hand man filed a lawsuit Monday against the city, alleging his retirement pay is being unfairly held up pending an internal inquiry.

Randall Brady, 51, who commanded the Special Intelligence Section that police ranks dubbed the "secret police," was informed in early December that the city is for now withholding $247,500 in early retirement benefits he is eligible to be paid over the next 11 years.

Brady's attorney, who filed the lawsuit in Guilford Superior Court, said his client is being penalized simply for having followed orders.

"It appears the city is punishing him because he was part of the Wray administration," attorney Seth Cohen said. "They have charged him with nothing; he has done nothing. He has served this city for 25 years."

Deputy City Attorney Terry Wood said the city had not received the lawsuit and thus had no comment.

Brady retired abruptly last fall.

According to City Manager Mitchell Johnson, while Brady was still on the force, he took a lie detector test with private consultants, during which he confirmed the existence of a "black book" and retrieved it from the trunk of his cruiser.

The interrogation came as consultants reviewed the Wray administration's lengthy investigation of police Lt. James Hinson and other officers.

Brady's lawyer noted Monday that Wray had ordered Brady to "secure" the book, which contained photo arrays of 114 African American men, including at least 19 city police officers. The attorney said Brady did not know the city manager was looking for the book.

Both Brady and Capt. Matt Lojko, a former Internal Affairs supervisor who was previously Wray's executive officer, retired with almost no notice the week after Thanksgiving. It is unclear whether Lojko's retirement pay is also being withheld. Lojko, when reached Monday by phone, declined to comment.

Brady's lawsuit was the first to be filed in the wake of the inquiry that began when Hinson discovered Special Intelligence operatives were trailing him in June.

But Monday's lawsuit may not be the last in what promises to be a costly legal battle for the city.

City officials this week retained a prestigious Greensboro law firm that in the past has charged $225 an hour to handle city matters.

City Attorney Linda Miles said members of her legal staff had been working 60 to 70 hours a week on police issues, as well as other matters. Contracting with Smith Moore will off-load some of that work, Miles said.

But the biggest reason for retaining outside legal help was a possible conflict of interest. Because two city attorneys helped compile reports critical of Wray's administration, Miles said, the attorneys may themselves be called to testify in court.

"Ethically we can't represent them," Miles said. "They're like our partners in a law firm."

Expenses for the police scandal will most likely be in the hundreds of thousands of dollars. The city spent more than $70,000 hiring a Raleigh-based consultant last fall to help conduct interviews, to administer lie detector tests, and to review phone and computer records related to Wray and the Special Intelligence Section.

Hinson, the lieutenant who sparked the public scandal, received nearly $40,000 while he was on paid suspension from mid-June through mid-January.

And expenses don't include the man hours devoted within the city attorney's office and the police department to investigate claims of internal racial profiling. Nor do they include future legal settlements or jury awards if the cases were to go to trial.

Hinson was initially represented by Joe Williams, a n attorney and former judge. But after the lieutenant's reinstatement to the force, Hinson and several other black officers who were investigated by Special Intelligence retained former county prosecutor Ken Free and Jonas Knight to negotiate with the city.

Meanwhile, Wray hired employment law specialist Kenneth Keller, who advised Wray before his resignation. Veteran attorney Locke Clifford also represents Wray.

Two Special Intelligence officers and a vice detective are represented by the same firm as Brady. Those officers, who are still on the force, are Scott Sanders, Bobby Edwards and Brian Bissett.

Contact Lorraine Ahearn at 373-7334 or lahearn@news-record.com

Contact Eric J.S. Townsend at 373-7008 or etownsend@news-record.com