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FDLE announces widespread probe into internet gambling -- Allied only 'first wave'

Owners of dozens of Internet gambling centers in Florida were arrested Wednesday as part of a three-year investigation into Jacksonville-based Allied Veterans of the World, a purported charity group that, authorities say, collected millions of dollars for itself and little money for veterans.

The probe led to the arrest of 55 individuals in Florida and five other states and prompted the resignation of Lt. Gov. Jennifer Carroll. Two suspects remained at large Wednesday.

It is the “first wave” of Operation Reveal the Deal, which targets illicit slot machine operators who exploited a loophole in the state’s sweepstakes laws, Gerald Bailey, commissioner of the Florida Department of Law Enforcement said at a news conference in Orlando.

Targeted in the crackdown were owners and operators of 49 gambling centers affiliated with Allied Veterans of the World, an organization registered as a charity but which gave only 2 percent of its profits over three years to charitable causes. None were in Broward or Miami-Dade counties; three were in Monroe. Carroll’s consulting company had represented Allied Veterans until she became lieutenant governor in 2011. Police would not say whether Carroll received payments from the group while serving lieutenant governor.

“Their premise of charity is a lie — a lie to our citizens and a lie to our veterans,” Bailey said. “Our investigators believe that the reality is that each gambling center is operated by the owners of for-profit agencies that funnel the bulk of the money back to themselves.”

He said charges would be forthcoming next week against those in custody on suspicion of illegal gambling, racketeering and money laundering. He emphasized that there would be additional probes into other Internet cafes not affiliated with Allied Veterans. More here.