FBI Reportedly Investigating Nevada Governor Over Contractor's Gifts

The FBI is investigating whether Nevada's governor failed to report gifts from a military contractor that he received while serving in Congress, law enforcement officials said yesterday.

Investigators are also examining whether Jim Gibbons, a Republican, performed any official acts on behalf of the contractor in exchange for gifts or payments, according to the officials.

The governor released a statement yesterday in which he defended his efforts to "introduce" the contractor's software products to fellow members of the House intelligence and Armed Services committees. He said he has "never been notified of any investigation by the FBI."

"I am confident that my actions were ethical," he said in his statement. "However, if there is ever found to be an inaccuracy or mistake, I will rectify it."

Reporting yesterday on the investigation, the Wall Street Journal published a series of alleged e-mail exchanges about Gibbons's dealings with Warren Trepp, the software entrepreneur whose company won millions of dollars' worth of classified military contracts during the time Gibbons served in Congress.

Among the dozens of e-mails is one allegedly sent days before Trepp and his wife prepared to set sail on a Caribbean cruise with Gibbons and his wife. In it, Trepp's wife allegedly wrote to her husband: "Please don't forget to bring the money you promised Jim and Dawn." Trepp's reply, according to the Journal report, was: "Don't you ever send this kind of message to me! Erase this message from your computer right now!"

The gifts allegedly included the cruise and travel on Trepp's private jet, as well as some suggestion of a payment that Trepp made to Gibbons, the Journal reported. Gibbons was first elected to the House in 1996 and served five terms.

The probe is at an early stage, and no conclusions have been reached about whether any crime was committed, one of the law enforcement officials said.

Trepp's attorney, Steven Peek, told the Journal that the software company executive has not been contacted by federal investigators about his relationship with Gibbons. Peek said yesterday that his client is unaware of any investigation and questions the authenticity of the e-mails cited in the Journal report.

None of those involved has disputed that Gibbons and Trepp are friends. Trepp and his relatives have donated more than $30,000 to Gibbons and his wife, who unsuccessfully made her own bid for Congress, in the past five years.

"My relationship with Mr. Trepp has no bearing on the effectiveness of the technology created by his company or its ability to aid in our efforts to improve national security," Gibbons said.

Details about the relationship between Gibbons and Trepp appear to have become public through a legal dispute between Trepp and a former employee of his company, eTreppid Technologies LLC. The case concerns the fair use of software technology, according to court papers.

The Reno, Nev., firm holds several federal software contracts, the nature of which has largely remained concealed because of the secrecy surrounding some aspects of military and intelligence budgeting.

In September, then-Director of National Intelligence John D. Negroponte filed a declaration in the eTreppid lawsuit, in which he said that if some elements of the case became public, it could be "reasonably expected to cause serious, and in some cases exceptionally grave damage to the national security of the United States."

The probe of Gibbons has also raised questions about the impending departure of U.S. Attorney Daniel G. Bogden of Nevada, whose office will oversee the investigation. Bogden is among seven U.S. attorneys who were abruptly fired by the Justice Department without explanation. His last day is Feb. 28.

Staff researcher Julie Tate contributed to this report.