Lt. Gov. Jennifer Caroll resigned amid a federal probe on Wednesday. (Photo by Gage Skidmore.)
By Ashley Lopez
Florida Center for Investigative Reporting
Lt. Gov. Jennifer Carroll resigned amid news that she is part of a state and federal investigation of a charity organization for veterans, which is tied to an Internet cafe company suspected of racketeering.
So far, about 60 people have been arrested across the state as part of the investigation. It’s unclear whether Carroll will face criminal charges. However, Gov. Rick Scott’s chief of staff, Adam Hollingsworth, said the lieutenant governor was resigning in an effort not to mire the administration in scandal.
The Tampa Bay Times/Miami Herald reports:
At issue is Carroll’s connections to Allied Veterans of the World, a Florida nonprofit that operates a chain of Internet sweepstakes cafes as a pseudo-charity. Nearly 60 people associated with the company were arrested this week on various charges, including illegal gambling, racketeering and money laundering.
Carroll owned a public relations firm that represented Allied Veterans, and as a member of the Florida House of Representatives, did work for the company. She later filmed an advertisement promoting Allied Veterans while serving as lieutenant governor.
Carroll resigned in a two-sentence letter after meeting with the governor’s chief of staff, Adam Hollingsworth, and general counsel Pete Antonacci. She did not meet with Scott.
As The Tampa Bay Times first reported back in 2011, Allied has had ties to state lawmakers for some time. According to the Times:
Allied, one of the state’s largest sweepstakes cafe operators, has spent hundreds of thousands of dollars on state lobbyists and contributed $25,000 for a Gov. Rick Scott inauguration event. It has battled local sheriffs and slapped Seminole County with a federal lawsuit. Its former public relations firm was once headed by Lt. Gov. Jennifer Carroll.
Johnny E. Duncan, the nonprofit’s longtime national commander, is the man who steered Allied into the sweepstakes cafe business. He hands out checks given to veterans groups and poses for photos with politicians.
The newspaper also reported that Duncan has a history of using veteran’s charities as fronts for his illegal gambling. In the 1980s, he was fined in South Carolina for running the same type of operation he is alleged to have run in Florida.
The current investigation began in 2009. According to law enforcement officials, the company was misrepresenting how much money it was giving to veteran’s charities.
And this is isn’t the first time Carroll’s ties to the gambling company have resulted in controversy.
The Florida-Times Union reports:
As a member of the House, Carroll filed legislation that would have formally legalized the [internet gambling cafes], which currently falls into a gray area in state law. Gaming centers operate under Florida’s sweepstakes laws, but opponents deem them illegal gambling.
Carroll later acknowledged the conflict of interest and withdrew the bill, which she said was filed by a staffer without her knowledge.
The move came as the Jacksonville City Council was considering banning the gaming centers. The city would later become the first in Florida to regulate them.
State lawmakers have considered the issue the past few years. During the 2012 legislation session, the House passed a bill that would ban the businesses, but it died because senators would only consider legislation regulating them.
Carroll was already involved in a lawsuit filed by a former state employee who alleged that the lieutenant governor had an inappropriate relationship with another state employee. The lawsuit is pending.