DAYTON DAILY NEWS                   Copyright (c) 1995, Dayton Newspapers Inc.DATE: Saturday, June 17, 1995                TAG: 9506170094EDITION: CITY           SECTION: NEWS        PAGE: 1A SOURCE: By Mark Fisher        Dayton Daily News                       2 WSU OFFICIALS RELIEVED OF POSTS    Wright State University President Harley Flack fired education dean Fred Gies and a colleague from their administrative posts after discovering major deficits and financial irregularities in college accounts the two men were responsible for, Flack said Friday.   Gies - the subject of a  pending Ohio Highway Patrol criminal investigation- and B. Charles Leonard, chairman of the education college's department of educational leadership, have been placed on paid leave until Aug. 31, when they will return to tenured faculty positions.   During a meeting Friday with College of Education and Human Services faculty, Flack said that Gies still has a faculty appointment ``at this time.'' Dismissing a tenured faculty member generally requires a series of hearings and potential appeals.   Flack said he took action against Gies and Leonard prior to the conclusion of the patrol's criminal investigation because of ``some information that cameto my attention this week on fiscal mismanagement.'' He would not elaborate onthe nature of the alleged mismanagement, and he declined to say whether he plans to seek further disciplinary action against the two faculty members.   Gies declined comment, referring questions to his attorney, Larry Greger . Greger could not be reached. Leonard also could not be reached Friday.   Greger has said that previous allegations of conflict of interest involvingGies - allegations that prompted WSU to place Gies on administrative leave in March and to request the criminal investigation - are ``unsupported and unsupportable.''   The university announced in March that it was investigating potential conflicts involving:   * The possible misuse of university resources to support a professional education  journal that Gies operates.   * Potential unethical transactions between the  e ducation college and a master's degree program WSU operates in the British  Virgin Islands.   * The  hiring of one of Gies' sons in the education college.   * A contract Gies proposed to Dayton School  Superintendent James  Williamsthat called for the dean to be paid Dayton City Schools money for  consulting services.   Gies and Leonard have faced accusations of wrongdoing before, when both were on the faculty of the University of Missouri-Columbia in the early and mid-1970s. The two were relieved of their administrative duties at the university and later resigned their tenured faculty positions over what was described as conflicts of interest over federal grants and contracts.   A criminal investigation by the U.S. Attorney's office resulted in no criminal charges being filed. Ron Reed, then the U.S. attorney in charge of the Kansas City office and now an attorney in private practice in St. Joseph, Mo., said in a telephone interview that ``not enough evidence was turned up bythe investigation to support bringing an indictment.''   Gies is paid $101,882 a year at WSU and Leonard's annual salary is $77,519.WSU spokeswoman Lynnette Heard said the two men were placed on paid leave because they ``are entitled to due process, and they remain employees of the university.''   Flack told about 70 adjunct and full-time faculty members that a search fora new dean will begin late this summer, with an eye toward naming a successor by Jan. 1.BOX:      ------------------------------------------------------------------------     Chronology of Inquiry at WSU             Lists events in investigation in the time period March 27 - June 16.          [BOX DID NOT APPEAR IN ELECTRONIC VERSION OF STORY].     ------------------------------------------------------------------------     LENGTH: Medium:   89 LINESSUBJ: SUSPENSION      COLLEGES      INVESTIGATION NA: FRED GIES    B. CHARLES LEONARD    WRIGHT STATE UNIVERSITY    HARLEY FLACK    JAMES WILLIAMS GEOG: GREENE COUNTY AT: FIRED FROM ADMIN POSITIONS  ENHANCER: REF8