Lt Gov resigns amid gambling fraud

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Florida's lieutenant governor resigned and nearly 60 other people were charged in a widening scandal of a purported veterans charity that authorities said Wednesday was a $300 million front for illegal gambling.

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From 2007 to early 2012, investigators found evidence of over $6 million in what appear to be charitable donations by Allied Veterans. That amount, however, was only about 2 percent of the over $290 million made from gambling operations during that time period. Instead of going to veterans, the vast majority of the money went to for-profit companies and the individuals who operated Allied Veterans and its so-called "affiliates."

Authorities said they seized about 300 bank accounts containing $64.7 million and assets including such exotic vehicles as Maseratis, Porsches and Ferraris.

To play games at one of the Internet cafes, a customer gets a prepaid card and then goes to a computer to play "sweepstakes." The games, with spinning wheels similar to slot machines, have names such as "Captain Cash," `'Lucky Shamrocks" and "Money Bunny," according to the IRS.

Winners go back to a cashier with their cards and cash out.

The games have been the subject of much debate in Florida and some are legal as long as most of the profits are donated to charity.

Each of the locations had a big sign prominently displayed that read: "This is not a gaming establishment." Inside were rows of computers where patrons could play the various games.

http://seattletimes.com/html/nationworld/2020546940_apusfloridaltgovresigns.html

The Pseudo Casinos had sprouted up all over rural Florida in many places the Internet Cafe rented internet access despite there being free wifi available. They were clearly for gambling since all the computers were used for that despite there being no obligation to visit any gambling web site.

The fraud seems to have originated in Oklahoma and the "veterans" got a pittance.

I would never play in one of those places. From what I hear, they pay over $1200 without W-2Gs here in Ohio and I am surprised the IRS doesn't go after them.

Quote: onenickelmiracle

I would never play in one of those places. From what I hear, they pay over $1200 without W-2Gs here in Ohio and I am surprised the IRS doesn't go after them.

Hard to know about the IRS. The Feds often let things roll while they make a case. Then one day a bunch of people get a wake up call with handcuffs.