Fallay’s big-dollar lawsuit against The City dismissed

U.S. District Judge Charles Breyer has dismissed a former building inspector’s lawsuit against The City, according to an order filed Monday.

“Plaintiff Augustine Fallay alleges that he was the victim of a wide-ranging conspiracy that involved, among other things, his termination, investigation, and prosecution,” the order of dismissal said. Those named in the lawsuit included FBI agents and city officials.

Fallay was overseeing the Department of Building Inspection’s permit coordination division when he was arrested by federal agents in August 2005 after authorities raided the department’s offices on Mission Street during business hours.

Fallay was accused of taking bribes, among other charges, during a 12-year period. In June 2007, the District Attorney’s Office dropped its case against Fallay after a jury acquitted him on three counts of taking bribes from a construction contractor and one count of insurance fraud. The jury was deadlocked on 29 other bribery and corruption allegations.

Fallay had asked The City to give him his job back, but The City shot down the request.

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