"I led the judge into town."
Translation:Ich führte den Richter in den Ort.
It's sort of both -- see https://www.duden.de/rechtschreibung/Ort_Platz_Stelle_Ortschaft , where meaning 1 is "place" and meaning 2 is something like "town, municipality".
It's not exactly a synonym for Stadt; it's a bit vaguer in that sense, I would say, and I would tend to use it more for smaller towns than for big cities.
The preposition in takes the dative case when describing the location of an object or of an action, and the accusative case when describing the destination of motion.
Here, you started outside the city and led the judge inTO the city (= the city is the destination of the leading, which started elsewhere), so in requires the accusative case here: in die Stadt.
rechter is not correct -- it should have been Richter with Ri- and not re-. Also, stadt should have been Stadt.
There is no indirect object in this sentence.
The verb führen just takes one object -- a direct object in the accusative case. In this sentence, it's den Richter.
The sentence also includes a prepositional phrase, in den Ort. It's started by a preposition and is not an object of the verb.