PORTLAND -- A Portland police captain who was suspended for posting plaques that honored Nazi-era German officers will have the disciplinary action removed from his personnel file.

The city of Portland agreed to that after Capt. Mark Kruger threatened a lawsuit. Kruger claimed a city official repeatedly slandered him in text messages by referring to him as a Nazi.

Kruger posted the plaque in a city park in 1999 and removed it about five years later. He described himself as a military history buff, and denied any admiration for Nazis.

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Besides removing the suspension from Kruger's record, the city agreed to pay him $5,000 and erase a reprimand he got for retaliating against a lieutenant.

Mayor Charlie Hales said in a statement Wednesday night that removing the documents doesn't change the facts, especially in a well-known story like this one.

The Oregonian reported that Commissioner Steve Novick was furious about the settlement, only learning of it from a reporter.

The irony of the fact that we heard of this the week after Chief Reese completed a diversity training does not escape me,'' Novick told the Oregonian.

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Kruger's Nazi icons honored a miltary branch of the Nazi party and Novick told the paper the dismissal of discipline was an insult to anyone of Jewish or Russian or Polish descent.''

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