SOUTHPORT, N.C. -- The City of Southport's Chief of Police Gary Smith gets an additional charge.

A grand jury has indicted Smith with obtaining property under false pretenses in addition to his conspiracy charge.

Smith and Lt. Michael Simmons were accused of clocking in for duty with the police department while actually working for a trucking company.

A Southport resident who has known Smith for over 20 years says he was shocked.

"They've messed up, and they're going to have to pay the price. I hate it, but that don't stop them from still being a couple of pretty nice guys, and it's going to be a shame what's going to happen," said resident Larry Vice.

The city manager is contracting a third party investigative firm to audit the police department.

Smith and Simmons are suspended with no pay, and the other five officers are still on administrative paid leave.