Information Technology Manager

Auburn, CA: (Oct-01-07) Ernest Shih, former information technology manager, brought a lawsuit against the city of Auburn, over an arrest in 2006 on an allegation of embezzlement. The suit claimed that Shih had been painted as a terrorist because he was also charged with illegal possession of a firearm and because there were reports that he had planted electronic listening devices in people's offices. Shih, who earned about $80,000 a year as the city's chief computer expert, said he carried a gun because he was a sworn reserve police officer for Auburn. He said reports of his bugging offices of fellow employees were based on hearsay, paranoia, and the wild imaginations of others. Sources said that investigators found no electronic devices. Shih said he spent three days in jail after being arrested in May 2006 and was released after posting $10,000 bail. He claimed that because of defamation, it was difficult for him to find employment. In a settlement reached, the city of Auburn agreed to pay Shih $30,000 to resolve the lawsuit. [PLACER COUNTY NEWS: FALSE ARREST]