Florida’s lieutenant governor resigned and nearly 60 other people were charged in a scandal involving a purported veterans charity that authorities said Wednesday was a front for a $300 million gambling operation.
The organization, Allied Veterans of the World, runs nearly 50 Internet parlors with computerized slot- machine-style games, which have come under scrutiny in Florida but are in a gray legal area.
Even so, investigators said the charity was a fraud and executives gave precious little to veterans while lavishing millions on themselves, spending it on boats, condos and Maseratis, Ferraris and Porsches.
Florida Attorney General Pam Bondi called the purported scam “callous” and “despicable” and said it “insults every American who ever wore a military uniform.”
Lt. Gov. Jennifer Carroll was not among those charged but resigned a day after she was questioned by investigators.
The public relations firm she co-owned, 3 N&JC, did work for St. Augustine-based Allied Veterans. A Navy veteran who served in the Gulf War, Carroll appeared in a TV ad in 2011 promoting the group’s work on behalf of veterans and their families.
Authorities refused to discuss any ties between the 53-year-old Republican and the investigation.
Carroll said Wednesday that neither she nor the public-relations firm was targeted in the probe, and she stepped down so her ties to the organization would not be a distraction for Republican Gov. Rick Scott’s administration.
The probe involved 57 arrest warrants and 54 search warrants issued in Florida and five other states: South Carolina, Georgia, Alabama, Nevada and Pennsylvania. As of midafternoon, 49 people had been arrested. Allied Veterans’ 49 parlors in Florida were raided and shut down.
Authorities said they seized about 300 bank accounts containing $64.7 million, as well as sports cars and other property.
Bondi said that when charges are formally filed next week they will include racketeering, conspiracy, money laundering and possession of slot machines.