ATLANTA -- On the same day that a federal grand jury began meeting to consider if wrongdoing occurred, the lawyer for Fulton County Sheriff Jackie Barrett announced that the embattled sheriff has changed her legal representation as she girds for a battle that could end up in court.

Citing a possible conflict of interest, Atlanta lawyer Mark Trigg said in a written statement Tuesday that he and his firm will no longer represent Barrett, whose handling of taxpayer money has sparked the federal probe. The statement said Trigg's office has a preexisting relationship with a firm that could be "peripherally involved" with the case although the statement did not identify the client or detail their involvement.

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"The sheriff will be represented by Garland, Samuel & Loebe," the statement said. "Ed Garland and Don Samuel of that firm are two of Georgia's best known criminal defense lawyers."

Manny Arora, a former prosecutor in the Fulton County District Attorney's Office who now works for Garland and Samuel, told the Atlanta Journal-Constitution that he will represent Barrett's interests in the federal probe.

Barrett, 53, was the nation's first black woman sheriff when she took office in 1992. She said last week she would wait until the "last possible minute" to decide her political future. The qualifying deadline for the November election is next week.

"I have decided not to run for re-election," she told Channel 2 Action News Monday. "We have made great strides as a department over the last 11 1/2 years, and I have just been honored and delighted to have served the citizens of Fulton County in this capacity."

Barrett's statement Monday came on the same day that her chief deputy appeared before a federal grand jury that is investigating how a Florida man convinced the sheriff to invest $2 million of county funds and whether the use was proper.

The grand jury began deliberating Tuesday although federal authorities declined to comment about the proceeding.

Part of the money has not been returned despite repeated calls by county officials who have asked for it back and statements by investigators who said they are investigating to determine if the way the money was handled was improper.

Federal investigators and a grand jury are probing the legality of the investment, which was first reported by Channel 2 Action News and has resulted in calls for the sheriff, who is elected to the office, to resign. The primary for the sheriff's post will be held in July and the election in November.

Chief Deputy Caudell Jones met Monday with federal prosecutors and FBI agents to talk about his involvement in the case. A grand jury is expected to begin hearing testimony Tuesday in the matter.

One of Jones' attorneys, Ed Marger, told the newspaper that Jones had nothing to fear in giving his statement, even though he has no immunity deal for cooperating in the investigation. A person who makes a false statement to federal law enforcement authorities can be prosecuted.

Marger told the AJC that that Jones proposed the meeting.

During an April 6 press conference, attorney Trigg, who had been hired by Barrett to represent her, said he had advised his client to remain silent about the matter.

Trigg said during that press conference that his office is conducting a full probe of the matter and that Barrett, whom he said has an "established, demonstrated track record of being candid, straight-forward, accessible and honest" will not speak about the matter until his office's investigation is complete. Since his office is no longer representing Barrett, the status of the probe was not immediately clear.

Fulton officials have recovered $5 million of $7 million in questionable investments by a Florida broker on behalf of Barrett, who has pledged to do everything she could to recover the rest of the money.

Barrett met Byron Rainner in February 2002 while in Fort Lauderdale, Fla., for a speaking engagement. He served on the host committee and solicited Barrett for investment business. She consented in March 2003 -- after she received $4,000 in campaign donations from Rainner, his company and a business associate.

Rainner invested $5 million with MetLife; another $2 million was invested through Provident Capital Inc.

Records show that Rainner filed for Chapter 13 bankruptcy on March 22 -- the same day an internal Fulton County audit of the money was completed.

William Harrison, a Fulton public defender, said the sheriff did the wrong thing by deciding not to seek re-election.

"I think she should run," he said. "I think she's a good sheriff and she's done the county well."

Eldrin Bell, the former Atlanta police chief, said he thinks she made the right move.

"I am hoping and praying for the best for her through all of this," he said. "But I think given the atmosphere and what is occurring around her, I think she made the best decision."

Channel 2 Action News reporters Mark Winne and Richard Elliot contributed to this report.