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Antoine Walker is not the only one who had a few bad days in Las Vegas and paid the price of imprisonment as a result. Recent reports coming out of Sin City reveal a new twist to an old and controversial tale involving the Nevada Governor Jim Gibbons and a local businessman who once accused Gibbons of corruption. Software Designer Dennis Montgomery alleges that during the year 2006,  Jim Gibbons, governor of Nevada, accepted bribes from a defense contractor,based in Reno. Now, Montgomery stands accused of not paying one million dollars in debts incurred while playing at a Las Vegas casino.

An Associated Press report issued about the case explained that  Dennis Montgomery’s lawyer offered a statement Thursday stating that Mr. Montgomery intended to protest his innocence to the criminal charges that he did not pay his debt to Caesar’s Palace for nine checks he allegedly wrote in September that totaled one million dollars.

Gibbons was a Nevada congressman when Montgomery’s allegations were leveled and an official investigation ensued. The whistleblower accused Gibbons of taking money, a Caribbean cruise, and bribes from eTreppid Technologies owner Warren Trepp. Montgomery had previously partnered with eTreppid Technologies until a dispute led to a lawsuit putting Trepp and Montgomery at odds over company property ownership.

The federal probe targeting Gibbons ended last November with no concrete charges. The probe began in 2007 when the FBI set up an investigation into  Gibbons handling of contracts to disclose whether he had mishandled contracts by giving them to eTreppid  to receive gifts and other compensation. Montgomery and Trepp mended fences in 2008 by settling the suit and moving on.

It appears now that maybe Montgomery decided to invest in his gambling skills. Though it’s not clear yet if Montgomery made any attempts to repay the debt, there was enough concern to issue a warrant and arrest him. The Las Vegas Review-Journal even published what looks like his mug-shot: http://bit.ly/yF81U.

Oddly enough, there is much more to the story since this is not the first time Montgomery has been in hot water over his gambling debts. The LVRJ article reported that Montgomery’s gambling issues first appeared  in 2006 after government inquiry and the Air Force began investigating him as part of an economic espionage and intellectual property investigation. In2006,a former partner with the company, Warren Trepp, confessed to investigators that Montgomery had borrowed in excess of  $1.3 million, in part, to repay casino debts of  $300,000, as was confirmed by the Air Force’s Office of Special Investigations.

The company at the heart of the whole story, eTreppid Technologies, landed a huge government software contract designed for the Predator Drone, promising $30 million for completion of a system promised by the company that later proved to be useless. The contract was not renewed.

The charges against Gibbons came during his run for the Governor’s office, and both the timing and Montgomery’s gambling ways may have been a big factor in keeping Gibbons out of hot water. A witness like Montgomery would have been a defense lawyer’’ dream had Gibbons faced a criminal trial as a result of the probe and no other direct witnesses could be cultivated.

Montgomery, arrested on July 16 in California, is due back in Las Vegas for arraignment on August 17th.

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