The software designer who sparked a federal investigation into Gov. Jim Gibbons after accusing the governor of taking bribes was arrested on allegations that he passed $1 million in bad checks on the Strip.
Authorities arrested Dennis Montgomery, 56, on July 16 near Palm Springs, Calif., on a warrant out of Clark County.
Las Vegas authorities issued a warrant for Montgomery's arrest in June, alleging that he passed about $1 million in bad checks at Caesars Palace in 2008.
The warrant alleges Montgomery spent nine checks, including one for $250,000.
He is facing one count of obtaining money under false pretenses and one count of theft.
Authorities said Montgomery posted bail on Tuesday night and was released from the Robert Presley Detention Center in Riverside, Calif.
He is scheduled to be arraigned in Las Vegas on Aug. 17. Montgomery did not respond to an e-mail seeking comment.
Montgomery was the former chief technical officer for the Reno-based software company eTreppid. The company won military contracts for video compression and target recognition software.
During the run-up to the 2006 gubernatorial election, Montgomery accused Gibbons of accepting bribes to help eTreppid secure military contracts.
In court papers, Montgomery accused Gibbons of accepting casino chips and $100,000 in cash during a star-studded, weeklong cruise in the Caribbean.
In 2007, the FBI opened an investigation looking into whether Gibbons improperly steered contracts to eTreppid in exchange for gifts.
The Department of Justice investigated the claims and cleared Gibbons of any wrongdoing.
Montgomery’s gambling problems surfaced in 2006 after the federal government and Air Force began investigating him as part of an economic espionage and intellectual property investigation.
His former business partner, Warren Trepp, told authorities in 2006 that Montgomery borrowed more than $1.3 million. Part of that loan was to pay off casino debts of about $300,000, according to a report by the Air Force’s Office of Special Investigations.
At the time Trepp made the allegations, he and Montgomery were in a dispute over ownership of eTrepppid software used by the military.
The Defense Department awarded eTreppid a no-contract bid for a potential maximum value of $30 million for its software.
The technology was supposed to help unmanned drones like the Predator find images on a battlefield.
But the military didn’t renew eTreppid’s contract because the technology didn’t work, military officials told the Las Vegas Review-Journal.
Contact reporter David Kihara at firstname.lastname@example.org or 702-380-1039.