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Palin Isn’t Being Probed by FBI, Contrary to Rumors, U.S. Says

By Justin Blum

July 6 (Bloomberg) -- Sarah Palin, who announced last week she will resign as governor of Alaska, isn’t under investigation by the FBI as has been rumored on the Internet, the agency said.

Palin’s activities, including those as governor and mayor of the town of Wasilla, aren’t being probed, according to the Federal Bureau of Investigation.

“Sarah Palin is not the subject of an FBI investigation,” said Eric Gonzalez, an FBI spokesman in Alaska, in a telephone interview today.

A lawyer for Palin, Thomas Van Flein of Anchorage, denied in a July 4 statement what he called “false and defamatory” claims on the Internet that she resigned because she is under criminal investigation related to the construction of a sports complex in her hometown of Wasilla. Allegations that Palin, 45, had embezzled from the project are false, according to Van Flein.

Palin was Republican presidential nominee John McCain’s running mate when he lost to Democrat Barack Obama last year.

Federal investigators had probed allegations of corruption among other Alaska political leaders. Among them was former Senator Ted Stevens, a Republican whose corruption conviction was set aside this year after prosecutors withheld information from defense lawyers during trial.

To contact the reporter on this story: Justin Blum in Washington at jblum4@bloomberg.net

Last Updated: July 6, 2009 17:45 EDT

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