The state threatened to strip Multnomah County Sheriff Bernie Giusto of his law enforcement credentials based on allegations that he knew of former Oregon Governor Neil Goldschmidt's rape of a 14-year-old girl years ago and misled the public about the fact.

Giusto has been given the option of agreeing to have his Oregon Department of Public Safety Standards and Training certification revoked or appeal the decision, said Jacqueline Weber with the Multnomah County Attorney's Office.

Video: Interview with Lt. who says allegations create 'collateral damage'

"DPSST has received information that you may have violated the established moral fitness standards for Oregon public safety officers by ... Misrepresenting to the public your knowledge, or the extent of your knowledge, of Neil Goldschmidt's relationship with an underage female," reads part of a letter to Giusto from the Department of Public Safety Standards and Training.

More: Read the letter to Giusto (pdf)

Through his spokesman, Giusto on Thursday denied lying and said he will appeal the allegations. In fact, he insisted he'll remain on the job even if his license is revoked.

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His terms lasts through 2010.

Giusto's case is expected to go before a committee on November 13th.

Background: Goldschmidt admits sex with 14-year-old

Also: Oregon's reputation hurt by Goldschmidt scandal

Goldschmidt’s rape of the girl became public in 2004. He admitted to sexually abusing the girl in the 1970s.

The admission came after Goldschmidt resigned from the Oregon Board of Higher Education and his chairmanship of the Oregon Electric Utility Company, blaming health problems.

In addition to his alleged knowledge of Goldschmidt's crime, the letter accuses Giusto of other, unrelated violations of moral standards.

Those include allegations that misled the public about the case of Jim Jeddeloh, who at the time was chairman of the Citizen Crime Commission, and to whom Giusto granted a concealed handgun license despite knowing of Jeddeloh's criminal background.

(KGW reporter Jack Penning contributed to this article.)