Deputy alleges sex and contraband at the Grant County Jail

WILLIAMSTOWN, Ky. - A Grant County Jail deputy filed suit Monday alleging he was demoted after bringing evidence of contraband use and illicit sex to the Grant County jailer, Terry Peeples.

In May of 2012 William McCarthy began investigating allegations that the chief deputy was providing contraband to a female inmate in exchange for sexual favors.

McCarthy contacted the Kentucky State Police and the Federal Bureau of Investigations to report possible violations of the Prison Rape Elimination Act.

KSP found no evidence that the chief deputy had engaged in that behavior.

Nonetheless, the suit, filed under the Kentucky Whistleblower Act, further states that when McCarthy completed his investigation he brought his findings to jailer Terry Peeples.

The suit alleges that Peeples stated, "I didn't want to see that. I don't want a copy and I don't want it in my office."

McCarthy was also investigating the use of illegal contraband allegedly provided to inmates by jail officers.

In June the suit states that Terry Peeples demoted McCarthy to floor deputy from his position as investigator.

In the months that followed McCarthy alleges that he was subjected to a string of disciplinary actions and that one "write-up" dated August 27, 2012 from jailer Peeples stated that, 'McCarthy would be sent to St. Elizabeth's Hospital for evaluation if he accumulated any more infraction points with a threat that failure to attend the evaluation could result in termination.'

9 News called Terry Peeples at the Grant County Detention Center but he has not returned the call.

The Kentucky State Police would only confirm that they do have an investigation directed at the Grant County Detention Center.

Stay with 9 News and WCPO.com for more details on this developing story.