Chula Vista Police Chief David Bejarano and former business partner Art Moreno reached a settlement agreement in their dispute over the operation of a security firm.
"He (Art) bought out my share of the business the first week of August," Bejarano said.
The two were co-owners of Presidential Security Services Inc., located in Chula Vista.
Earlier this year Moreno accused Bejarano of writing fraudulent checks on the company's account.
Bejarano countered by threatening to pursue a defamation lawsuit against Moreno.
In 2008, Bejarano was appointed president of PSSI through a shareholder's agreement and was issued 49 percent of stock shares in the corporation.
He resigned after being sworn in as Chula Vista's police chief in August 2009.
City policy prohibits officers from working for or owning a private security firm in Chula Vista.
When Moreno became president of the company after Bejarano resigned, he took steps to deny Bejarano access to corporate bank accounts. According to a complaint he filed with the city, Moreno said Bejarano continued to write checks from the company's account.
"This is simply a civil suit between two business partners, for whatever reason he's bitter and disgruntled," Bejarano said at the time.
The case was dismissed without prejudice in an unconditional settlement with the court Oct. 5.
"I simply wanted to terminate the partnership, that was the goal," Bejarano said.
Moreno was in meetings Thursday afternoon and not immediately available for comment.