A Maryland grand jury on Friday indicted Baltimore Mayor Sheila Dixon on 12 criminal counts, including theft and perjury, for alleged official misconduct beginning when she was a councilwoman.

A number of the charges relate to gifts that prosecutors say Ms. Dixon received from developers, including her former boyfriend, Ronald Lipscomb, and didn't properly disclose. Mr. Lipscomb isn't named in the indictment but was charged with bribery this week in Baltimore. His lawyer has said he is innocent.

In addition, the Maryland prosecutor's office charged that for four years Ms. Dixon misused holiday gift cards that were intended to be distributed to needy families. Prosecutors say she gave them to members of her staff and used them to buy herself electronics and clothing.
Ms. Dixon said in a statement that she had been unfairly accused, adding: "I am confident that I will be found innocent of these charges." She said she wouldn't step down as mayor.

"I will not let these charges deter me from keeping Baltimore on the path that we have set, or from carrying forward the significant progress we have made thus far," she said.

The indictment comes just as the city is witnessing a tenuous turnaround. Baltimore's murder rate fell 17% in 2008 from the year before. Many credit Ms. Dixon, who brought in a new police commissioner and directed the force to shift focus to the most-violent repeat offenders and away from petty crimes.

The city recently registered a small population increase for the first time in four decades, and its middle schools reported improved test scores last year.

Ms. Dixon served on the City Council from 1988 to 2007, including seven years as council president. Under state law, she became mayor in January 2007 when fellow Democrat Martin O'Malley vacated the office to become Maryland governor.