For the better part of 2006, it seemed we could barely go a few days without learning of another congressional Republican facing a federal criminal investigation. I doubt 2007 will top it, but this year’s already off to a good start — if you’re a defense attorney.
This one takes a few twists and turns, but keep reading because it’s a fun one. The Wall Street Journal reported yesterday that federal prosecutors are investigating whether Nevada Gov. Jim Gibbons (R), who was a Republican House member up until last year, accepted unreported gifts or payments from a company that was awarded secret military contracts when Gibbons served in Congress. He is now the 21st member of the 109th Congress to face a criminal investigation.
Today, Gibbons responded, calling the WSJ article “full of lies,” and asking the paper for a retraction. It’s not quite clear which part Gibbons is calling a lie — the story about the Cunningham-like unreported payments he’s alleged to have received, or the fact that he’s under a criminal investigation from the FBI. Given that the latter appears to be factually true, I guess he means the prior.
By any reasonable measure, what we know of the controversy looks pretty bad for the new Nevada governor. Here’s the story in a nutshell: Gibbons, a member of the House Intelligence Committee, is accused of having received improper gifts from Warren Trepp, an intelligence contractor, in exchange for directing lucrative government contracts to Trepp’s company, eTreppid. (As Justin Rood noted, “Like Cunningham, Gibbons sat on the House Intelligence Committee, whose work is done largely outside of public scrutiny.”)
Tidbits like this one should raise eyebrows.
On March 22, 2005, days before Mr. Trepp and his wife embarked on the Caribbean cruise with the congressman and his family, Jale Trepp sent a reminder to her husband. “Please don’t forget to bring the money you promised Jim and Dawn,” referring to Mr. and Mrs. Gibbons.
Minutes later, Mr. Trepp responds, “Don’t you ever send this kind of message to me! Erase this message from your computer right now!”
No, that’s not suspicious at all.
Wait, it gets better.
The allegations against Trepp and Gibbons were originally aired by Dennis Montgomery, Trepp’s former business partner, who “designed the software on which [Trepp’s company] eTreppid was founded in 1998.” Montgomery and Trepp have been fighting it out in court for more than a year, and that’s where Montgomery alleged that “Trepp gave at least $100,000 in cash and casino chips to Mr. Gibbons,” an allegation that eventually led to the Journal’s story in November.
But according to Montgomery, Trepp relied on some powerful friends to hit back:
“Mr. Montgomery has accused Messrs. Trepp and Gibbons of using their political clout to get local FBI agents to raid his home and investigate him [last March]. In December, a federal magistrate found flagrant constitutional violations in the FBI raid, according to people briefed on her ruling, which remains under seal. The court found that the local FBI and U.S. attorney’s office had effectively acted as armed enforcers for eTreppid’s wealthy owner in a private business dispute with a former partner.”
It sounds like a bad Elmore Leonard novel. Gibbons (allegedly) receives money from Trepp, Trepp gets lucrative contracts. Gibbons (allegedly) receives more money from Trepp, and Trepp’s troublesome business partner suddenly finds his home raided under suspicious circumstances.
And just to make this story extra fun…
[T]he U.S. Attorney for Nevada is Daniel Bogden, who is one of the seven federal prosecutors forced out in December (his last day is February 28th). So around the same time that he was asked to leave, a federal magistrate found that his office was basically acting as Trepp’s hired goon.
That sure was quite a “culture of corruption,” wasn’t it?