Local legislators were "sickened" by the news that former House Speaker Salvatore DiMasi was indicted on charges of personally profiting for his influence in the awarding of millions of dollars in state contracts.

"If it's true, he deserves to go to jail," said state Rep. Steve D'Amico, D-Seekonk. "People have every right to be outraged. I'm outraged."

The federal government alleged in an indictment unsealed Tuesday that DiMasi, Richard McDonough, Joseph Lally, and Richard Vitale concealed efforts to help a software company win a $15 million state contract, as well as payments they received for their influence.

DiMasi was indicted on eight counts, including conspiracy to defraud the federal government, mail fraud and wire fraud.

"It's quite a sad day," said state Rep. Betty Poirier, R-North Attleboro. According to the indictment, the company, Cognos LLC, paid Lally $2.8 million, and he in turn paid McDonough $200,000 and Vitale $500,000 when the contract was awarded

The indictment also said DiMasi received proceeds from $5,000 monthly payments Cognos made to a fellow attorney.

DiMasi, who resigned in January from one of the three most powerful jobs in state government, proclaimed his innocence as he and the others made an initial court appearance.

"Every decision I have ever made as the speaker or as a state representative was always made in the best interest of my constituents and the people of the Commonwealth of Massachusetts," the Boston Democrat said as he left the courthouse.

The men did not enter pleas Tuesday. They were released on $10,000 bail agreements, ordered to surrender their passports and not to leave the country. They are scheduled to be arraigned on Monday.

If convicted, they face up to five years in prison for each conspiracy count, and 20 years for each count of mail and wire fraud. Lally also faces a possible 10 years for the money laundering count.

The indictment seeks the forfeiture of DiMasi's North End condominium, Lally's North Reading home, various bank accounts Lally held jointly with his wife and a 2006 Boston Whaler boat.

DiMasi was the third Massachusetts speaker in a row to quit under an ethics cloud. He became speaker in 2004 after Thomas Finneran resigned during a federal investigation. Finneran pleaded guilty to obstruction of justice for lying during a redistricting lawsuit.

State Rep. Jay Barrows, R-Mansfield, said situations like DiMassi's indictment and the resignation of former state Sen. Dianne Wilkerson lead to a negative perception of everyone on Beacon Hill.

"There are some highly skilled folks that work in state government, but a cloud comes over everyone when one of these issues comes up," he said. For some lawmakers, the DiMasi scandal is symptomatic of the lopsided Legislature, where Democrats are a vast majority.

"It just creates an atmosphere that's ripe for abuse," said Poirier. "It's all because of that atmosphere where people believe they can do anything they want."

State Rep. Bill Bowles, D-Attleboro, disagreed, however, saying, while he is disappointed by the current situation, the problem does not lie with one party.

"I don't believe it's a one-party rule thing," he said. "Sometimes people think that they can go above the law."

Bowles pointed to an ethics reform package, currently before a conference committee, that would tighten restrictions in how lawmakers operate, specifically in their dealings with lobbyists.

"The ethics bill will go a long way to curb the kinds of abuses that have happened," he said.

D'Amico isn't so sure that the bill will be able to prevent all future cases of corruption, but said he thinks it is a step in the right direction.

"You can't legislate morality," he said. "In the end, it comes down to the behavior of individuals."