Allied Veterans of the World leader pleads no contest to racketeering

| August 15, 2013

MCPO Ret. in TN sends us a link to an article from the Orlando Sentinel about an organization that I’d never heard about before now. Johnny Duncan, the national leader of the Allied Veterans of the World, pleaded no contest to charges of money laundering and operating an illegal lottery with money that meant for veterans;

Duncan, 66, was arrested in March along with more than 50 other co-defendants, most on charges of racketeering, conspiracy, money laundering and possessing slot machines. They’re accused of turning Internet cafes into illegal casinos by transforming personal computers into virtual slot machines.

[…]

Prosecutors’ No. 1 target, Jacksonville lawyer Kelly Mathis, the group’s general counsel, was not due in court Wednesday. He is set for trial next month.

I tried to look up what the organization’s mission is, but every website is an attack site, so much for that. Their Facebook page says;

Allied Veterans of the World, Inc. & Affiliates is a 501(c)-19 nonprofit veterans’ service organization and a member of the Veterans Administration. Headquartered in St. Augustine, Florida, the organization has 16 affiliates across the state. Its mission is to help fellow veterans, first responder organizations and other charitable organizations in need by contributing time, money and support services. Since Dec. 2007, Allied Veterans has donated more than $5.4 million to veterans, community and first responder organizations in the Jacksonville area.

But the Sentinel tells the story differently;

At the time of the arrests, authorities accused Allied of grossing $300 million but providing just two percent of that as charity to veterans.

Five and a half million bucks sounds good until you hear it’s only 2% of their income.

Category: Phony Vet Charities

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Hondo

We featured them here 5 months ago, Jonn. Story’s been quiet since; I’m guessing serious plea-bargaining was taking place behind the scenes – and probably involves testimony against the main target.

First story: http://valorguardians.com/blog/?p=34549

Second story: http://valorguardians.com/blog/?p=34571

Great to see these assholes get burned. Well deserved, and kudos to the Florida AG’s office for burning them.

RandyB

It was covered here when they were first arrested:
http://valorguardians.com/blog/?p=34549

And here:
http://valorguardians.com/blog/?p=34571

The one near me looked from the outside like a place for people to use the internet. But this one did not claim to be a veterans’ charity, although I understand that many of the others did. I didn’t know they gambled there until I walked by at night, when you could see what was on all the monitors.

They were making a huge amount of money.

Andy

actually, you guys have posted about them before
http://valorguardians.com/blog/?p=34571
http://valorguardians.com/blog/?p=34549
you know when I was a kid, I was always told that the “business model” of a charity was to give away as much as possible. then I got older and found out that most “charities” *cough AER cough* could get away with just handing out a tiny % of what they take in, and spend the rest on “operating expenses”. I’m sure in the 80s the go to scam was starving children in Africa, to day, we are the go to scam.

Andy

lol, hive mind.

Hondo

Easy to miss or forget stuff, Jonn – especially when someone else wrote the first two articles. The only reason I remembered the charity had been featured before was that I wrote the first two articles. (smile)

Even so, I also had to use Google to verify that I was remembering correctly. After 5 months, I wasn’t sure.

Valkyrie

The first time you posted about this is what brought me here, it was the first post I had ever read here. I had just been burned by a phoney Vet’s charity and was researching them. I had seen links to here on Don Shipley’s YouTube so I decided to check y’all out. I came for the phonies and stayed for the entertainment! Thanks again for that!

2/17 Air Cav

The not-for-profit label that charities use is pursuant to their tax status, nothing else. I’d guess that most charities like that many folks mistakenly think that this means that the operators don’t take a salary. After all, who wants to give to a charity whose chief operating officer is taking in a small (and sometimes large) fortune? And that’s why the admin costs are so important to know about a charity–how much actually gets to the targets of the giftgiving. In this case, that didn’t apply b/c this gang was running an illegal enterprise. Just the same, first stop before giving is to learn who is getting how much.(Pizza kit anyone?)

Roger in Republic

I’d say this case needs a “Fake Vet” enhancement at sentencing. You know, like the “Felon in Possession” firearm enhancement. In this case I would think twenty years additional for each count plus asset forfeiture and restitution.

Hondo

Valkyrie: glad to know that’s what got you hooked on our little gig here at TAH. I hope you enjoy hanging out with us at the “island of misfit toys”. (smile)

SIGO

These guys used to sit in front of Walmart and SAMs asking for money for vets.

NavCWORet

@7, now, those two things have merged into one !

Valkyrie

Hondo – If y’all are the island of misfit toys, then I’m the wagon with the square wheel. No other place I’d rather hang out.