In civil case, Jaramillo tells his side of the story

An assistant Orange County sheriff who was fired and charged with perjury and spent a year in jail may be in line to get $750,000 in taxpayer money for wrongful termination.

George Jaramillo, who was referred to as the “pickpocket” and the “The Great Satan” during former Sheriff Michael S. Carona’s recent criminal corruption trial, took the stand Thursday and told the court that he was dismissed as the county’s second-highest-ranking cop without being granted a hearing that sworn peace officers are entitled to under state law.

He said he was fired after telling Carona that he was fed up with carrying out the sheriff’s dirty work and covering up his boss’ extramarital affairs.

There is no jury in the Superior Court civil case, which will be decided by a judge.

The case could have broad ramifications because a central question is whether the county violated Jaramillo’s rights under the state’s Peace Officers Bill by failing to hold a termination hearing.

County lawyers maintain that Jaramillo signed an at-will agreement that allows government workers to be fired for no reason and that he is entitled to nothing because he had “unclean hands.” But Jaramillo contends that he was a sworn law enforcement officer at the time and should have been granted a hearing.

Superior Court Judge Andrew Banks appeared to agree, indicating more than once that the county might be liable. According to a confidential county counsel memo obtained by the Orange County Register, Jaramillo has demanded $750,000 and Banks thinks Jaramillo’s case could be problematic for taxpayers.

The possible windfall for Jaramillo marks another twist in the lives and fortunes of the men who once ran the state’s second-largest sheriff’s department.

Carona is scheduled to be sentenced Monday for witness tampering; Jaramillo served a jail term for perjury; and a second assistant sheriff, Don Haidl, quit the department so he could focus on the high- profile sexual assault case against his son.

Despite the criminal trial and grand jury probes that have touched his life, Jaramillo’s testimony Thursday marked the first time he had taken the witness stand and told his side of the story.

Jaramillo, who served as Carona’s first campaign manager, was appointed assistant sheriff in 1999 and fired in March 2004 as rumors spread that a federal investigation of the Sheriff’s Department was afoot. He later served a year in jail for perjury and misusing a county helicopter.

He helped federal prosecutors as they tried to build a case against Carona and pleaded guilty to tax charges in hopes of leniency. Although the government never called him as a witness, barely a day went by without his name surfacing. He was described as a man driven by greed and power.

But Thursday, he portrayed himself as a whistle-blower.

According to Jaramillo, his relationship with Carona began to deteriorate after he confronted his boss about misusing campaign money to pick up expensive dinner tabs with friends, and misusing county resources by having sex with a mistress in the sheriff’s vehicle, office headquarters and helicopter.

Jaramillo said he also cautioned Carona that it was improper to hire his mistress’ husband, a tactical move he said the sheriff arranged so the woman could have health benefits and he could keep track of the husband’s schedule.

The trial resumes Tuesday.

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christine.hanley@latimes.com