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Nov. 03, 2008
Copyright © Las Vegas Review-Journal

CORRUPTION INVESTIGATION: Federal probe clears Gibbons

'There was no basis for any allegations,' attorney says

By TONY BATT
STEPHENS WASHINGTON BUREAU

Gov. Jim Gibbons
It was alleged that he took gifts in exchange for securing defense contracts

WASHINGTON -- The Department of Justice has cleared Gov. Jim Gibbons and closed its investigation of allegations that the former congressman took unreported gifts from a friend in exchange for millions of dollars in federal contracts, the governor's defense attorney said.

Gibbons is expected to hold a news conference today to declare an end to the corruption probe that linked him to Reno defense contractor Warren Trepp. The investigation centered on allegations Gibbons improperly used his influence when he was a member of the House to obtain secret contracts for Trepp's firm.

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    • "The prosecutors in the case confirmed what the governor has been saying for the past two years -- that he did nothing wrong and there was no basis for any allegations against him," attorney Abbe Lowell said in a statement obtained over the weekend by the Review-Journal.

    Lowell said he spoke Friday with Assistant U.S. Attorney Steven Durham, who was conducting the probe, "and was told the investigation of any allegations against governor Gibbons had been closed," according to the statement issued by the McDermott, Will & Emery law firm, where Lowell heads its White Collar Criminal Defense Group.

    "I anticipated this would be the result," Gibbons said Sunday in a telephone interview with The Associated Press. "This is taking a little of the weight off my shoulders. I hope the public is starting to see that the partisan attacks and attacks of personal destruction against me are false."

    Calls to Durham and the governor's spokesman, Ben Kieckhefer, were not returned.

    Robert Olmer, a consultant for Gibbons, said Sunday that the vindication was a "huge relief."

    "People can now form their own opinions and realize that the governor has been victimized," said Olmer, who also contends that the investigation has been driven by partisanship.

    The Justice Department had been investigating whether Gibbons, who was a member of the House from 1997 through 2006, earmarked several millions of dollars in military contracts for Trepp's software company.

    Software designer Dennis Montgomery, who used to work for Trepp's company, claimed Gibbons received a Caribbean cruise and campaign contributions from Trepp in exchange for the contracts.

    But in September, Montgomery and Trepp agreed to a legal settlement. A few weeks later, Gibbons visited Washington and joined Lowell in a meeting with the FBI to seek a conclusion of the probe.

    "It troubles me that the federal government has this capability of putting your life on hold and it never seems to move one way or the other, and I know I'm innocent; I know I did nothing, but I still have the federal government out there," Gibbons complained in a Washington interview conducted before that meeting.

    Gibbons denied wrongdoing throughout the probe. He said he reimbursed Trepp for the cruise. Still, photos from the 2005 trip showing Gibbons wearing a goofy cloth napkin tied pirate-style around his head have dogged the Nevada governor, with critics citing it as evidence he is not to be taken seriously.

    In an apparent reference to Montgomery, Lowell said in his statement: "The only persons who should be investigated or charged are those who made false allegations of wrongdoing and who tried to fuel this investigation for their own private purposes."

    "They should be ashamed at the toll they have had on the Gibbons family and the people of Nevada should be proud to know that their governor is the hard working, honest and ethical man they elected in the first place," Lowell said.

    Review-Journal writer Lisa Kim Bach and The Associated Press contributed to this report. Contact Stephens Washington Bureau reporter Tony Batt at tbatt @stephensmedia.com or 202-783-1760.

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    Timothy Pough (pew) wrote on November 05, 2008 10:37 AM: I'm being swomped with e-mails that seems to be bogish, and do need you future help in finding out wqho is good and who is bad. I am keeping record of the solocitations that I've been recieving.
    Tou may contact me at 214-381-2000 or Cell# 214-683-6639.
    Thanks,
    Tim.


    Donald wrote on November 03, 2008 02:34 PM: He may have skated this one but he wont skate the molesting charge.......


    John wrote on November 03, 2008 02:28 PM: I wonder if he sent his girlfriend a text message to tell her about it.


    LittleBird wrote on November 03, 2008 01:53 PM: This excert was taken from a different article." His attorney, Abbe Lowell, of Washington, said Sunday that the Justice Department told him Gibbons wouldn't be charged. A law enforcement official close to the case, who spoke anonymously because authorities never officially acknowledged the probe, confirmed the substance of Lowell's statement".Why wouldn't the Justice Dept.officially acknowledge the probe?Starting to smell more and more like road kill (really stinks).I can remember the time we didn't really question the goverments motives like we are forced to do today.Sure doesn't speak well for the lack of trust we have in the justice system/government anymore.


    Chuck the Duck wrote on November 03, 2008 01:14 PM: Of course, this is the same DOJ that sanctioned torture and wiretapping, hired people based on political and religious affiliations, stonewalls Congress on its investigation of the outting of a CIA agent and the politically-motivated dismissals of a host of U.S. Attorneys, and who knows what else...Gibbons investigation closed, the rightwing would have it no other way, I'm sure.


    Mr.Si-Fi wrote on November 03, 2008 12:38 PM: I thought this waz about UFO's


    HOA-SCAM wrote on November 03, 2008 11:10 AM: what they need to do instead of wasting time investigating a man that they know is innocent -

    is continue to expose the HOA's that are scamming home owners in the Valley...


    joe wrote on November 03, 2008 10:15 AM: DOJ is chalking this one up to business as usual in Washington I guess. I'm sure strings were pulled somewhere.


    investigate wrote on November 03, 2008 09:49 AM: All the comments exemplify why American and of course Nevada is in the mess it is in.

    No question that Gibbons is a loser, but there are no secret agendas behind the DOJ not having anything prosecutable on the governor.

    Gibbons is a small part of a bigger problem in Nevada. There is corruption at all levels. The worst is in the justice system.

    The reality is the corruption in Nevada has been around longer than Bush and is bi-partisan.

    Nevada needs to clean house and prosecute a number of elected officials but not for any of the reasons mentioned in the comments below which is why nothing will change in Nevada until the people of Nevada wake up!!


    Reggie wrote on November 03, 2008 09:25 AM: GlennR,

    Are you calling Gibbons a liar? As has been reported before, Gibbons has said that he earmarked contracts in the Black Budget when he was on the Committee.


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