Robb Quincey, 52, of Upland was arrested Friday by investigators from the District Attorney's Bureau of Investigation.
Quincey was booked at West Valley Detention Center in Rancho Cucamonga on felony charges including unlawful misappropriation of public money, gaining personal benefit from an official contract, and giving false testimony under oath, according to District Attorney's Office officials.
Quincey denies the charges, according to a statement from his attorney, Michael Zweiback.
"His reign in the city has been one of the most devastating of any city manager that I know of," Mayor Ray Musser said. "People look back and say everything was good. All these new buildings went up. Well it wasn't all fine and we're finding it out after the fact."
Quincey, who was terminated by the City Council in May 2011 for failing to follow council direction and breaching his employment contract, is accused of committing a public officer crime and conflict of interest in January 2010.
The amount of loss to the city of Upland is estimated to be in the hundreds of thousands of dollars, according to the District Attorney's Office.
The investigation that led to the arrest was initiated by the Inland Regional Corruption Task Force, which includes the Federal Bureau of Investigation and the District Attorney's Office.
The arrest is part of an ongoing corruption investigation involving former Upland officials, including Pomierski, who pled guilty to a federal bribery charge in April 2012. Pomierski was sentenced in August to two years in federal prison.
Zweiback said Quincey did not misuse public funds and has been the victim of a completely misguided investigation.
"Mr. Quincey is innocent of all the charges," Zweiback said in the statement.
The City Council placed Quincey on paid leave in January 2011 following reports that he settled two claims in January 2010 involving Upland police for $50,000, which at the time surpassed the amount he was allowed to settle.
Quincey sued the city in November alleging his firing was without cause and sought $7.8 million in damages.
He claimed he settled the claims for $25,000 each, which was within his authority.
An arbitration judge in July found that Quincey violated the city's ethics rules and broke his employment contract by intentionally concealing his settlement of Moore's claim.
The arbitration cost the city $300,000 in legal fees.
Quincey is also accused of committing perjury in June 2012 by stating he informed the City Council that he "was going to be resolving a personnel matter related to John Moore," according to the complaint.
In January 2010, the police union's attorney emailed a tort claim to Quincey on behalf of Moore, an Upland police lieutenant, accusing Quincey, Pomierski and the former Upland police chief of retaliating against him for refusing to destroy a police report he took in July 2008 of a domestic dispute between Quincey and his girlfriend.
Quincey, who made more than $460,000 in compensation as city manager, negotiated a settlement with the union attorney resulting in a $50,000 payment, which was said to include another complaint filed by Upland police during the same month.
As part of the settlement agreement, Moore was promoted to lieutenant.
According to an Upland police report of the incident, officers were called to the home of Quincey's ex-fiancee on July 27, 2008 after she received three text messages from him that she found threatening.
The officers also investigated claims that Quincey kicked and punched her car when she was leaving his residence earlier in the day.
No charges were filed.
Marc Simpson, president of the Upland Police Officers Association, said in an emailed statement that the association is confident the District Attorney's Office has conducted a thorough investigation.
"We support the decision they have made to protect the citizens of Upland from malfeasance," he said.
Musser said he is not surprised about the charges filed against Quincey.
"I felt that there was a whole lot more that was not exposed and now it's good to see they're getting to the bottom of it," Musser said.
Councilman Gino Filippi said the city needs to put this dark chapter of Upland's past behind them.
"The previous culture of wilful corruption has now hopefully come to an end," he said. "The financial impact of the corrupt behavior of a few officials has been an enormous drag on the financial stability of Upland."
Timeline for former Upland City manager Robb Quincey
March 2005 - Robb Quincey hired as Upland city manager. Quincey was formerly city manager in Hesperia.
July 2008 - Upland police investigate an incident involving Quincey and an ex-fiancee, who received three text message from him that she found threatening. The officers also investigated claims that Quincey kicked and punched her car when she was leaving his residents earlier in the day. No charges were filed.
December 2009 - Quincey negotiates Upland police officers' employment contract with union attorney, giving officers annual raises through 2013 and agreeing to pick up the employee portion of their pension by 2013. The City Council approved the contract.
March 2010 - Quincey's contract is amended to give him the same increases the police officers were to receive.
January 2010 - The Upland police union attorney emails Quincey a tort claim on behalf of Lt. John Moore, who investigated the domestic dispute in 2008. Quincey allegedly settles with the attorney on Moore's claim as well as another claim filed against the city by the police for $50,000.
January 2011 - The City Council places Quincey on paid leave of absence, following reports that he settled the two claims. The city's finance director Stephen Dunn was placed as interim city manager.
May 2011 - City Council terminates Quincey for failing to follow council direction and breaching his employment contract.
November 2011- Quincey files a claim against the city seeking $7.8 million in damages. He accused the city of breaching his employment contract, wrongful termination and violating labor codes. The claim also accused Mayor Ray Musser and Councilman Ken Willis of defamation.
December 2011 - City rejects Quincey's claim. Quincey's attorney requests arbitration.
July 2012 - Arbitration judge upholds city's termination of Quincey.
September 2012 - Arbitration judge rules that city does not owe Quincey any more compensation.
October 2012 - Quincey arrested by San Bernardino County District Attorney's Office officials on three felony counts.
Reach Sandra via email, call her at 909-483-8555, or find her on Twitter @UplandNow .