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GRAY DENIES RESIGNING DUE TO ALLEGED PROBE

Rep. William Gray, D-Pa., the outgoing House whip, dismissed as rumors any suggestion he is resigning because of alleged Justice Department scrutiny of his financial affairs.

"There's no investigation of me at all," Gray said in response to a question on CNN "Newsmaker Saturday.""I guess a lot of people can't understand Bill Gray and why somebody who seems to be at the top of the mountain would be stepping out," said Gray, who announced his resignation from Congress last week to become head of the United Negro College Fund.

"I'm not stepping out; I'm stepping up in terms of the values of my life and what I think is important ," said the third-ranking House member and highest-ranking black elected official.

Gray said rumors about a Justice Department probe seem to crop up every time he changes jobs. The last time they surfaced was two years ago as he moved into the whip's slot, he said.

"Again, as I'm about to make another change, here are leaks again that people are writing about, rumors," he said.

His comments came when Los Angeles Times bureau chief Jack Nelson asked him to address suggestions that he didn't want to continue to have his finances scrutinized. Nelson also alluded to an alleged FBI investigation.

Gray said Attorney General Dick Thornburgh has publicly stated four times - as recently as April 1990 - that Gray was not the target of an investigation.

Last week, the Justice Department refused comment on whether Gray had been a target of an investigation.