Jim Gibbons Governor says FBI has not contacted him and newspaper story "is full of lies" Dawn Gibbons Governor's wife says allegations reported in Wall Street Journal are unbelievable

CARSON CITY -- The FBI is investigating allegations Gov. Jim Gibbons accepted unreported payments or gifts from a friend whose Reno software company Gibbons helped land secret military contracts while he was in Congress, The Wall Street Journal reported.

Gibbons denied the accusations on Thursday, saying he never accepted money beyond campaign contributions from businessman Warren Trepp, a longtime friend and owner of Reno-based eTreppid Technologies LLC. The newly elected governor also questioned the article's assertion that the FBI is investigating the matter.

"The story in The Wall Street Journal is full of lies, and I'd like them to retract it," Gibbons said during an interview with reporters in his Carson City office.

The governor said he has not been contacted by agents. "I would have thought if they wanted to talk to me they would let me know. I am a pretty public figure. It is up to them to come and say, 'We are investigating you.' "

Reached in Washington, D.C., FBI spokesman Jeff Lanza said his agency "cannot confirm or deny" whether Gibbons is under investigation.

The Associated Press reported that sources confirmed the bureau is investigating Gibbons. The sources were not identified.

As a former lawyer, Gibbons said he knows FBI protocol requires agents to inform people they are investigating.

But if the bureau's investigation is in its initial stages, federal officials might not have notified Gibbons yet, said Carl Tobias, a University of Richmond law professor.

"At some point, they have to tell you you are a target," said Tobias, who formerly taught at the Boyd School of Law at the University of Nevada, Las Vegas. "I don't think it has happened here yet."

The Wall Street Journal reported that the investigation appears to be in a preliminary stage.

Gibbons said he might visit the FBI's office in Washington, D.C., to ask if his dealings with Trepp are the subject of an investigation. He is scheduled to travel there next week for a National Governors Association meeting.

The newspaper reported that the FBI is investigating whether Gibbons received payments or gifts from Trepp in exchange for helping him secure the government contracts. Gibbons served five terms as the 2nd Congressional District representative before being sworn in as Nevada governor on Jan. 1.

The newspaper reported that court filings include an e-mail in which Trepp's wife, Jalé, reminded her husband not to "forget to bring the money you promised Jim and Dawn."

The newspaper reported that Warren Trepp responded minutes later: "Don't you ever send this kind of message to me! Erase this message from your computer right now!"

The message was sent before the Trepps took a Caribbean cruise with Gibbons and his family in March 2005, the newspaper reported.

Gibbons did not report the trip on his finance report covering 2005.

In November, Gibbons said through a spokesman that he did not seek an exception to the House of Representatives' ethics rules so that he could go on the cruise, which was a personal vacation, not a business matter.

Gibbons' congressional staff sent a letter to the committee in November asking whether the exception should have been sought, but the matter was dropped when Gibbons' congressional term expired.

In a 2003 e-mail, eTreppid executive Len Glogauer told Warren Trepp that Gibbons had been helpful in securing a contract for the company and "we need to take care of him like we discussed," according to The Wall Street Journal.

Gibbons said he knew nothing about the e-mails.

Trepp, through his companies, contributed $90,000 to Gibbons' gubernatorial campaign last year.

Gibbons said the messages might have been about those donations.

"I would never take money to do something my job obligated me to do, to promote the safety and welfare of the people of Nevada and this country," Gibbons said.

The eTreppid e-mails included some from Gibbons, the newspaper reported.

The then-congressman told company executives he was "greatly impressed" with their technology and asked an aide to arrange a meeting with National Security Agency representatives, according to the newspaper.

Gibbons also told an eTreppid executive to use a private e-mail address that was "a direct link to my desk and does not go through anyone else," The Wall Street Journal reported.

Gibbons has said the contracts were awarded because eTreppid deserved them. They were supported by others on Nevada's congressional delegation and others who took money from Trepp, Gibbons has said, and they had nothing to do with Trepp's personal and financial support of Gibbons.

Sen. Harry Reid, D-Nev., and Rep. Jon Porter, R-Nev., also requested federal funding for the technology developed by eTreppid.

The company received no-bid contracts from the Air Force, Central Intelligence Agency and other agencies for software to detect and track targets in Iraq and other areas.

Stephen Peek, Trepp's Reno lawyer, said Trepp "categorically denies" the e-mails cited in the article were ever written.

"We question their authenticity," Peek said. "I have requested copies of them from The Wall Street Journal."

The Trepps have not been contacted by the FBI or any other government agencies about an investigation, Peek said.

In a lawsuit filed in U.S. District Court in Reno, Dennis Montgomery, a former business partner of Trepp, accuses him of giving Gibbons and his family "at least $60,000" and unlimited use of a credit card.

Montgomery, who is suing over alleged copyright violations related to software eTreppid sold to the military, also charges that Gibbons "instituted" an illegal raid on Montgomery's home on behalf of Trepp through calls to the FBI and U.S. Attorney Daniel Bogden.

Gibbons said Thursday that he doesn't know Bogden.

Bogden, who said he met Gibbons once, denied having anything to do with a raid on Montgomery's home.

Dawn Gibbons, the governor's wife and a former assemblywoman, called the allegations "unbelievable."

"If they are investigating Jim, I have no problem with it," Dawn Gibbons said. "It is the only way we can get cleared. We haven't done anything wrong. They can look at my bank account."

State Senate Minority Leader Dina Titus, D-Las Vegas, called the allegations "another distraction" that could hamper Gibbons' efforts to pursue his agenda at the Legislature.

"The budget is incomplete and full of mistakes. We have no details about his programs," said Titus, who lost the governor's race to Gibbons in November. "This gives the Legislature a lot of leeway to accomplish things while the governor struggles with his credibility."

State Democratic Chairman Tom Collins said the allegations "put a cloud of suspicions" over Nevada.

"It just doesn't shine a very good light on the state of Nevada. Just the appearance of wrongdoing hurts us," he said.

Collins said he was hesitant to speak because he was previously sued by Trepp over a statement he made in November.

Lt. Gov. Brian Krolicki had no comment on the allegations.

Assembly Minority Leader Garn Mabey, R-Las Vegas, said some people don't want Gibbons to succeed so they continue to bring unfounded allegations against him.

"Gibbons is trying and I think will be a good governor," he said. "We need to move on."

Mike Dayton, Gibbons' chief of staff, said the allegations will not affect Gibbons' ability to push his budget and programs through the Legislature.

"The governor did nothing wrong," Dayton said. "Every day we are moving our legislative agenda. It is not distracting us from doing the people's business."

Gibbons said he and Trepp have been friends for nearly 20 years and the allegations have not affected their friendship.

"He is as upset as me," the governor said. "Both of us know this is lies. Both of us know nothing ever happened. I will not let outrageous false allegations by some person I don't know interfere with my life. Warren is a wonderful individual."

Stephens Washington Bureau Chief Steve Tetreault and Review-Journal Capital Bureau writer Sean Whaley contributed to this report.