14 DAY TRIAL // 57 people have been indicted in the Allied Veterans of the World case, in which earnings resulting from illegal gambling were laundered through a charitable organization.
The charity had a number of Internet cafes in place, where they had electronically-operated slot machines installed. The foundation is registered to Jacksonville, Florida, News F Jax writes.
The slot machines are illegal in the state of Florida, with two exceptions – as part of a casino or as a means of raising money for charity.
Under the direction of Jacksonville's Jerry Bass, 62 and Kelly Mathis, 49, Chase Burns, 37, of Fort Cobb, Oklahoma and Johnny Duncan, 62 from Boiling Springs, South Carolina, the group ran a $300 (€231) million operation.
“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 (€231) million gambling scheme.
“This insults every American that ever wore a United States military uniform,” Attorney General Pam Bondi says in a statement.
Other participants in the scam are residents from not only Florida, but also Alabama, South Carolina, Pennsylvania, Nevada and Georgia.
Authorities plan to charge them with gambling, money laundering and racketeering among others, with 49 suspects already arrested.
“In an effort to mislead the public into believing that it is not profiting from an illegal gambling enterprise, Allied Veterans and others have engaged in a conspiracy and scheme to defraud,” an IRS affidavit reads.
The scandal has prompted the resignation of Florida's lieutenant governor Jennifer Carroll, appointed Executive Director of the Florida Department of Veterans Affairs in 2000.
The Navy veteran was involved with the non-profit as a consultant, even appearing in one of their ads in 2010, Daily Mail informs.
“Lt. Gov. Jennifer Carroll consulted for Allied Veterans while serving as a member of the Florida House of Representatives in 2009 and 2010.
“Lt. Gov. Carroll resigned in an effort to keep her former affiliation with the company from distracting from the administration's important work on behalf of Florida families,” Gov. Scott's Chief of Staff Adam Hollingsworth has stated.