Florida Lt. Gov. Jennifer Carroll resigned Wednesday in the wake of a multi-million dollar illegal gambling scheme which has led to arrest warrants issued for 57 people.
At a news conference today, Florida Department of Law Enforcement Commissioner Gerald Bailey said, Allied Veterans of the World, a non-profit organization, engaged in an illegal gambling operation through its 49 Internet Cafes across the state. Allied Veterans operated the cafes in 23 Florida counties and profited to the tune of $300 million during the period 2007 – 2011, he said.
Carroll, a Navy veteran, once owned a public relations firm that represented Allied Veterans of the World.
Gov. Rick Scott said in a statement earlier today that Carroll had made the right decision in resigning and did so “in an effort to keep her former affiliations with the company [Allied Veterans] from distracting from the administration’s important work on behalf of Florida families.”
Bailey said some of the key players that have been arrested are: owner Johnny Duncan; director Jerry Bass; Chase Burns, the software provider based in Oklahoma, and Jacksonville attorney Kelly Bernard Mathis, who he said was at the center of the illegal gambling operation. Bailey added that Mathis profited to the tune of $6 million from the money laundering and racketeering scheme, while Bass and Duncan had each collected $30 million. Burns is believed to have pocketed some $63 million.
The premise that Allied Veterams operated as a charitable non-profit is a lie, Bailey said.
“…For-profit agencies of Allied Veterans of the World funneled money back to themselves and less than 2 percent or a mere $6 million, went to charity,” he said.
Bailey added that today’s arrests were the “first wave” of three-year investigation that involved six states and several law enforcement agencies, including Seminole County Sheriff’s Office, Volusia County Sheriff’s Office, Jacksonville Sheriff’s Office, Internal Revenue Service, United States Secret Service and some 500 officers.
According to the 130-page ‘Application for a Search Warrant’ beginning in 2007, Allied Veterans began operating “fundraising centers” called Affilates of Allied Veterans that claimed to be providing “electronic sweepstakes” in connection with the sale of Internet time. In fact, the “fundraising centers” were nothing more than Internet Casinos that operated slot machines in violation of Florida’s gambling laws.
Bailey said, the money laundering and racketeering operation of Allied Veterans of the World and their affiliates was also linked to lobbying efforts and donations to political campaigns. A review of the documentation released today revealed that, a check in the amount $25,000 was deposited in the account of Republican Party of Florida on October 15, 2009.
Attorney General Pam Bondi, who was present at today’s press conference said, persons arrested would face charges related to racketeering, conspiracy to engage in racketeering, money laundering, keeping a gambling house and possession of slot machines, among others.
“It is shameful that Allied Veterans of the World allegedly attempted to use the guise of charitable organization to help veterans in order to lend credibility to this $300 million gambling scheme,” she said.
