Gibbons opens new fund to cover various legal costs

CARSON CITY -- Gov. Jim Gibbons has established a new legal defense fund to pay for legal and related costs of fending off accusations he improperly used his influence to get secret federal contracts for a friend in exchange for cash.

The fund replaces one that was closed down earlier this year after questions were raised by Secretary of State Ross Miller. The new fund will be used to defend against other allegations as well.

Miller ended his inquiry into Gibbons' legal defense fund in March, saying he found no violation of campaign finance laws in the trust fund that paid nearly $200,000 for legal expenses related to accusations against Gibbons.

Gibbons used his personal funds to pay for his high-profile Washington, D.C., attorney, Abbe Lowell, once the fund was closed, taking out a second mortgage on his home.

A new measure passed by the 2007 Legislature permits the creation of the legal defense fund 30 days after the session ends. Gibbons filed on June 29, and the fund was posted by the secretary of state's office on July 2.

No solicitations have yet been made for the fund because of the 30-day requirement, said Dianne Cornwall, deputy chief of staff to Gibbons. The administrator is listed as David Turner.

The only contributor to the fund so far is Gibbons himself. The amount he contributed wasn't disclosed, although it will be reported later as required under the new law.

The new law limits contributions to $10,000. It also requires a report to be filed with the secretary of state's office within five days of the fund's creation.

"He's got to defend himself against these worthless charges," Cornwall said. "You can't let these people say these untrue things."

Gibbons has denied any wrongdoing in any of the matters listed for the defense fund.

The various legal challenges he has faced include:

• An FBI/grand jury investigation into Gibbons' alleged dealings with Warren Trepp and eTreppid Technologies and allegations that Gibbons helped secure defense contracts in exchange for gifts and money.

• The ongoing civil litigation between eTreppid Technologies Inc. and Dennis Montgomery in U.S. District Court.

• An investigation regarding Jim Gibbons' relationship with Sierra Nevada Corp. and the report that the corporation hired first lady Dawn Gibbons as a consultant and paid her $35,000 at the same time that Jim Gibbons helped the company get funding for a no-bid federal contract.

• An investigation into Gibbons' alleged assault of Chrissy Mazzeo in a parking garage in Las Vegas, shortly before his election as governor. No evidence was found to support the allegations.

• An investigation into an allegation that Gibbons employed Martha Sandoval, an alleged illegal immigrant, as a nanny.