Duffy to Have Secret Fund Audited : Sheriff: District attorney says court may have to resolve who should control money seized in drug raids.

San Diego County Sheriff John Duffy, under scrutiny for establishing a secret bank account to deposit drug funds, said Thursday that he is ordering an audit of the account, which he will make public.

Duffy, prohibited by the Board of Supervisors since June from spending money seized in drug raids, refused to deposit more than $300,000 worth of drug funds into the county treasury.

Instead, Duffy set up his own account, from which he made various payments, such as sharing drug proceeds with the district attorney’s office and cities that participated in drug busts.

The district attorney’s office is reviewing the matter but has not yet decided whether to begin a formal investigation, according to spokesman Steve Casey.

Casey said Dist. Atty. Edwin Miller believes the matter may well be settled in the courts because the law is not clear as to who should control the drug funds.

“Whether an investigation is warranted or not, it is the district attorney’s opinion that this matter won’t be settled until it gets into court, either having the board sue the sheriff or the sheriff sue the board,” Casey said.

County auditors Wednesday asked the district attorney’s office to investigate Duffy’s actions. Because the district attorney received some of the drug money, auditors suggested that perhaps the state attorney general should get involved.

A spokesman for the attorney general said he had not heard of the controversy.

Sgt. Glenn Revell, Duffy’s spokesman, said the sheriff determined “several weeks ago” that his secret account needed an audit. Revell said Duffy asked the U.S. Department of Justice to perform the audit, but the federal agency suggested to Duffy that he hire an independent, outside auditor and pay the auditor with drug proceeds.

Revell said Duffy set up the account after asking asking Associate Deputy Atty. Gen. Barry Stern if such an account was consistent with federal guidelines governing drug monies. Stern assured him that it was, Revell said.