City of Prineville paid over $677,000 to former police chief, captain while they were on leave, investigated and resigned

(Update: More details of severance agreement)

PRINEVILLE, Ore. (KTVZ) -- Public records obtained by News Channel 21 show that on top of the paid leave former Chief Larry Seymour & Captain Rob Gray received while under a "non-criminal investigation," they were also given a combined $511,674.11 to leave the department. The total cost to taxpayers: $677,640.67.

In January, the city of Prineville announced that Seymour and Gray, the top two supervisors in the department, had resigned under a negotiated settlement. The city, like it has been throughout the saga, was not forthcoming with information, declining to explain why the pair resigned and if it had anything to do with the investigation.

To learn more, NewsChannel 21 filed a public records request for the negotiated settlement between the city and the pair. On Feb. 2, a lawyer for the city declined the request, saying the documents were likely to be part of a looming lawsuit and thus exempt from public record requests.

It appears that The Oregonian/OregonLive also filed a public records request for the same documents, and after hiring a lawyer, "to press the news organization's public request," the city gave in.

The documents show Seymour being paid a total of $331,212.15 to leave the department: $250,125 was severance and the remaining $81,212.15 was for accrued sick and vacation time. The severance agreement for Rob Gray showed him being paid $180,461.96 in severance and $29,524.41 for leftover sick and vacation time.

News Channel 21 previously reported that Seymour received upwards of $74,258.83 of paid leave during the investigation, while Gray received $64,025.23. Essentially, the city paid a combined $677,640.67 to both men during the six months where they were placed on leave, investigated and eventually resigned.

Questions about severance remain

It's not clear why the city paid both men severance. Under the employment contract, if they resigned (which is what the city is quoted as saying they did), they were not technically due any severance. When asked why they paid severance, a spokeswoman for the city pointed to Section 10 of the employment contract, which details the agreements for a "termination without cause." The section states that one month of severance is to be given for each year of service. Seymour served over 20 years for Prineville Police, while Gray served 14 years.

An email asking to confirm whether Seymour and Gray resigned or were terminated without cause has not been responded to as of yet.

Seymour and Gray served a combined 34 years, working their way up through the department ranks. Through their over three decades of service, both became well-known within the small, tight-knit town of 11,000. Nobody to date has publicly spoken negatively about the pair, and a search of NewsChannel 21 archives finds no reported scandals related to either man before this.

Whistleblower lawsuit gives insight into investigation

Shortly after both men resigned, it came to light that Nikki Hepworth, a former administrative manager for the department was suing the city of Prineville and Larry Seymour for retaliation after she reported what she thought was illegal behavior.

The lawsuit revealed that a complaint by Hepworth against Seymour and Gray was behind the investigation into them.

Hepworth says she heard Seymour and Gray conspiring against Officer Lindsey Ward, who was placed on light duty by a doctor for an on-the-job injury. According to the lawsuit, Hepworth heard them say they would make Ward's light duty "as hard as possible" and made her do tough tasks like wash walls. Ward resigned from the department in late 2023.

On March 8th of last year, Hepworth said she reported to the City Manager Steve Forrester that Seymour and Gray were bullying her, according to the lawsuit.

In July of 2023, Hepworth was placed on paid leave, along with Seymour and Gray, while an investigation took place. That investigation, and then another wrapped up, and in January of this year, Seymour and Gray resigned through a separation agreement.

Hepworth was also offered a separation agreement, but declined. According to the suit, she refused to return to work after learning that she would report to acting Chief Shane Wilson. A short time later, she was fired.

9 months with no permanent top cop

Since July of 2023 the City of Prineville has been without a permanent police chief, though the city says public safety has not been compromised by the vacancy. Recently, the city told News Channel 21 that they had hired former Oregon City police chief Jim Band to help with the department's transition and with hiring a new chief.

Band says they plan to partner with a search firm to assist with the nationwide search for a new chief. Band said finding someone that will fit in with the small towns values is crucial, adding, “Our goal is to have a new chief hired by the end of the summer."