Yet Another Scam Veteran’s Charity?
Looks like we may have yet another scam masquerading as a charity that “helps veterans”. And it appears this one was no small-time scam, either.
Florida-based Allied Veterans of the World was founded in 1979. It first ran “bingo games”. It’s since moved up to internet video gambling.
It claimed to be raising money primarily for charity. Indeed, in some states (like Florida), that’s the only reason their operation was legal. Some states allow what would otherwise be illegal gambling activities so long as more than half of the proceeds in fact go to charity.
Allied Veterans was quite successful. From 2007 to 2012, they apparently took in around $290 million.
The problem is, when authorities looked at their books they could only find about $6 million in charitable donations for the same period. That’s just over 2% of intake. Meanwhile, the guy heading Allied Veterans – a former president of the Jacksonville Bar Association – allegedly also received $6 million.
Authorities found nearly $65 million in various bank accounts; these accounts have been seized. And they also found that the organization’s execs seemed to be living the proverbial “Life of Riley” – complete with boats, beachfront condos, and high-end sports cars (Porsches, Ferraris, and Maseratis).
A total of 57 arrest and 54 search warrants were executed in six states in connection with the Allied Veterans investigation. Charges to be filed next week are expected to include racketeering, conspiracy, money laundering, and possession of slot machines. Additionally, the owner of what was apparently Allied Veterans’ partner – International Internet Technologies – and his spouse were also arrested and charged with racketeering and conspiracy. International Internet Technologies supplied the software used in the internet gambling scheme. According to IRS records they apparently made over $60 million dollars from the enterprise from 2007 to 2010.
Florida’s current Lieutenant Governor has resigned due to the scandal. It seems she’s appeared in at least one TV commercial (2011) lauding Allied Veterans and their work supporting vets. Prior to being elected, her PR firm also worked for Allied Veterans.
She resigned a day after being questioned in connection with the investigation. She is not facing criminal charges.
Investigation reportedly continues – focused on political donations and lobbying. There may well be a second act to this little drama.
Kudos to the State of Florida and their Attorney General’s office for putting these scammers out of business.
Category: Phony Vet Charities, Shitbags
“She is not facing criminal charges.” Right. Not yet she isn’t, anyway. If she were clean, she wouldn’t have resigned. She would have railed against those who duped her and insisted the guilty be ‘brought to justice.’ Or was she DEEP THROAT and got approached weeks or months ago with a deal she couldn’t say no to? Inquiring minds want to know.
I am really glad they nailed these scumbags for scamming veterans. The lawyer who masterminded the operation, Kelly Mathis, used to live three houses down from me and moved about two years ago after he misrepresented intended improvements to his home that were then denied by the homeowners association. The local, state and FBI are investigating and it is getting wider and deeper. The Lt Governor of Florida has resigned. Here is the story in the local paper. http://jacksonville.com/news/metro/2013-03-13/story/jacksonville-attorney-accused-being-mastermind-300-million-gambling
Just like I heard someone say on a investigative news show once “You want to get rich? Start a charity.”
Lt Gov Carroll is a retired Navy LCDR… maybe she caught the PTSD.
I’m still trying to find where the Lt. Gov fits in. I get that she did PR work for them….that’s certainly not a crime but there must be something for her to resign so quickly….
If the Lt. Gov had just done a commercial for them I could pass that off as her getting scammed like everyone else. The fact that she resigned so quickly and her PR firm worked for Allied Veterans sure does raise some eyebrows.
@5. OT. She doesn’t officially fit in at all. She resigned after being questioned. Why she didn’t go on extended leave I do not know–if she is clean. If she’s dirty, then her resignation makes sense. She did ‘consulting work’ in addition to the PR. What that means I have no idea. We’ll have to wait until one of the dozens of people charged starts bleating. With so many defendants, they’ll be a long line of contestants wanting to play Let’s Make a Deal.
There’ll be not they’ll be.
Response from the Governor’s office earlier said she resigned to keep from being a distraction to the current administration. Taking one fo rthe team, so to speak. If she’s exonerated I am sure she will resurface.
@9. If that turns out to be true, I’ll stand outside and sing Anchors Aweigh (I corrected that from Anchors Away after I looked it up) until I lose my voice (or get knocked out ’cause I have a lousy singing voice.)
The state of Florida has long been known as having the weakest consumer protection laws. Thirty odd years ago there was a little company named FiberFab. They made kit car bodies for VW and MG’s they were sold and moved to Fla. The whole thing became a scam. Bodies were paid for and never shipped. Cars were shipped and the freight was more than the original order cost. They had a tame trucking company that charged 4 or 5 times the normal rate. The state could do nothing. If you have ever been called by someone at ‘Credit Card Services’ they are a total scam, once again located in FLA. This is the reason I will not do any business with any firm that makes it’s home in Florida. If this charity scam case means that Fla. is changing I say good. If not, Beware of Florida businesses!
[…] it didn’t take too long for the curtain to rise on Act II of the Allied Veterans of the World […]