By NBC News
Nevada Gov. Jim Gibbons announced today that he has been "cleared" by the FBI in a federal corruption investigation.
“About two years ago, false accusations about me surfaced in the midst of some contentious litigation," Gov. Gibbons said. "Now, federal investigators, including the FBI, have confirmed what I have said all along. These accusations are baseless and there is not a shred of evidence showing I did anything improper."
The FBI and Department of Justice began investigating Gibbons after the Wall Street Journal and NBC News reported that Gibbons--while a U.S. Congressman--took a luxury cruise in 2005 that was paid for by a prominent Nevada defense businessman and defense contractor, Warren Trepp.
Trepp's firm, eTreppid Technologies LLC, had received lucrative Pentagon contracts. The FBI began investigating whether Gibbons had improperly helped Trepp's firm land the multi-million-dollar federal deals.
Gibbons' criminal-defense lawyer, Abbe Lowell, said in a statement that a federal prosecutor in Washington called him Friday to say the case is over.
"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," Lowell said. "Now, it should be crystal clear that 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."
Trepp's lawyer, Reid Weingarten, also confirmed that the investigation had ended without any prosecution. "We are very pleased the Justice Department closed its file in all matters relating to Warren Trepp," Weingarten said. "We have always maintained that Warren's relationship with the Governor was entirely proper and we feel vindicated with today's result."
Two officials at the Justice Department declined to comment.
Gov. Gibbons said: "In case you haven't noticed there is a pattern of false accusations against me that become widely reported and then are proven to be absolutely untrue."
The allegations of wrongdoing were fueled by software designer Dennis Montgomery, who used to work with Trepp at eTreppid but then had a falling out with him over ownership of proprietary software. In an on-camera interview with NBC News that aired last year, Montgomery said that he had witnessed Trepp pass cash and casino chips to then-Congressman Gibbons. Gibbons and Trepp adamantly denied the accusations. And Trepp's lawyer accused Montgomery of doctoring emails that purported to substantiate Montgomery's claims.
In September, Montgomery and Trepp agreed to a legal settlement. The terms of the settlement were confidential, but the parties disclosed that the agreement included a payment to Mr. Trepp as "compensation for certain allegations made against Mr. Trepp in print and electronic media."
