Fayette Circuit Judge Ernesto Scorsone brought to a close a Lexington city government fraud investigation when he signed an agreement to dismiss the case.
The controversy involved questions raised by Patrick Johnston, the city's director of risk management, about the way some of the city's insurance had been switched to the Kentucky League of Cities in 2007.
After Johnston made his allegations, his job was targeted for elimination.
The city hired attorney Terry Sellars to represent its Internal Audit Board and Bruce Sahli, director of internal audit. The city also hired another attorney, Roger Crittenden, to represent Urban County Council member George Myers, chairman of the council's Special Investigative Committee.
The committee was trying to get documents from the Internal Audit Board, which contended the documents could not be released because they were confidential.
On Oct. 4, State Auditor Crit Luallen's office found no evidence of fraud in the way the city government bought insurance. But the audit recommended revamping many procedures in the city's purchasing policies.
After Luallen's audit, council decided it did not need to pursue the documents and agreed to settle the case.
The city is expected to owe the lawyers about $50,000, and the state audit will cost the city about $51,000.
The order Scorsone signed was filed with the circuit court clerk's office on Thursday.