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Everybody's best friend

A look at Warren Trepp, the man behind the scandal which is dogging Gov. Jim Gibbons

BY BOB SHEMELIGIAN

Incline Village-Crystal Bay is an exclusive community on the north side of Lake Tahoe filled with philanthropic millionaires. Of that rarefied set, the wealthiest and the most civic-minded was Warren Trepp, Gov. Jim Gibbons' good friend who, according to the Wall Street Journal, is at the center of an ongoing bribery investigation.

"Warren is one of the best family men I've ever known," said neighbor Sam Folio, content provider for MusicGiants, a music-download service. "He's a devout Catholic and a very religious man. I've never seen anyone who's more philanthropic and able to engage others in philanthropy."

Trepp, according to the Secretary of State's office, is the owner or partner in no fewer than 37 businesses in Nevada, including eTreppid Technologies, which has won millions of dollars in classified military-software contracts. His neighbors in the exclusive lakeside enclave of Crystal Bay include Beach Boys member Mike Love, Creedence Clearwater Revival drummer Doug Clifford, commodities trader Ed Seykota, and fellow businessman, philanthropist and longtime friend Michael Milken.

Courtesy Nevada Governor's Office
Gov. Jim Gibbons has been a longtime friend and benefactor of Warren Trepp, an association that has been causing him headaches since it was revealed that the FBI has been investigating their relationship.

MILKEN'S PROTEGE

In the 1970s and 1980s, Trepp worked as Milken's chief bond trader at Drexel Burnham Lambert, in Beverly Hills. The two sometimes traded hundreds of millions of dollars each day. Milken, nicknamed the "Junk Bond King, was charged with securities violations, ultimately paid a $200 million fine and served 22 months in prison.

Trepp, a Drexel partner, also got into legal trouble. Federal regulators filed a civil claim against him, charging securities fraud, but Trepp was represented by legendary attorney William G. Hundley, former special assistant to Attorney General Robert F. Kennedy.

Over the years, Hundley forged a reputation as one of best trial lawyers in the business. Trepp was smart enough to recognize this trait. Hundley won the case. Trepp later paid an estimated $19 million to help settle civil claims against the firm but kept most of his fortune.

In the early 1990s, Trepp moved from California to the north shore of Lake Tahoe, where he bought a waterfront eight-acre compound and settled down with his wife Jale and son Warren Edward. Rather than relax by the lake, Trepp immediately began forming scores of Nevada businesses and investing in films and Broadway plays. But his true love was Incline Village.

In 1996, Trepp co-founded the Parasol Community Foundation, a nonprofit umbrella organization that promotes philanthropy, collaboration and volunteerism. Over the next nine years, Trepp (who stepped down in 2005) and other board members would adopt a business approach to philanthropy. They encouraged collaboration among nonprofits throughout the North Lake Tahoe region, improved communication and coordinated activities.

And they got things quickly and efficiently. "These are very smart, successful people," said Bill Hoffman, executive director of the Incline Village/Crystal Bay Visitors Bureau. "Many of them are venture capital folks -- people who have taken business public. They know what they're doing. They're organized and they have experience in raising funds."

PATRON OF THE ARTS

Folio said Trepp has a gift for organization and for tapping the strengths of others. "This is what he brings to the table," Folio explained. "He not only brings his personal knowledge and experience, but he draws out the best from others. If you think about the residents here, they include people from (the group that founded) Peoplesoft, and family members of (Sam Walton) the founder of Wal-Mart. There are a lot of smart, business-minded people here."

Soon after, Trepp and other philanthropists entered into an agreement with the State of Nevada to build a stage for Lake Tahoe Shakespeare Festival performances at Sand Harbor State Park. The $2 million Warren Edward Trepp Stage, dedicated at the start of the 2000 season, was paid for with private donations and will be leased to the Shakespeare Festival until the year 2040, at which time ownership will revert to the state.

"It's a beautiful setting, with a natural sand amphitheater," said Catherine Atack, executive director of the Lake Tahoe Shakespeare Festival.

Even though the Lake Tahoe Shakespeare Festival was formed 35 years ago, Trepp, who didn't arrive at the waterfront community until just before 1995, was named the festival's honorary founder.

Trepp sold his waterfront compound five years ago for more than $30 million. He moved to Monreux, a gated golf-course community near Lake Tahoe. His former neighbors say no matter where he goes, he's always welcome back to Incline Village.

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