Jennifer Carroll resigned as Florida's 18th lieutenant governor following questions by authorities investigating an Internet cafe company that she once represented.

Lt. Gov. Carroll turned in her resignation to Gov. Rick Scott on Tuesday. The governor's office confirmed the news Wednesday morning.

A major Florida Department of Law Enforcement investigation that began in Seminole County has led to the arrests of 49 people so far, with 7 more wanted.

A news conference in Orlando by the FDLE and Attorney General Pam Bondi detailed the operation that centered on Allied Veterans of the World.

Investigators said the company brought in about $300 million since 2007 and while it claimed to be a non-profit charity for veterans, only two percent of that money actually went to charity.

"Claiming to be an organization that helps veterans in order to run an illegal scheme insults every American who ever wore a military uniform," said Bondi.

FDLE Commissioner Gerald Bailey described the arrests of conspirators made in multiple states in the alleged gambling ring operating under the guise of internet cafes that raise money for veterans.

Bondi detailed the charges those individuals would face, which included racketeering and gambling.

"Using the word charity to cover up a scheme is not only callous, but despicable," she said.

Seminole County Sheriff Don Eslinger said the investigation began in 2009 with a complaint from a World War II veteran that walked into an internet cafe off of SR 436 in Seminole County.  Eslinger said other complaints were also received early on.

Investigators said they now plan to look into other gambling locations under different names.

"And I can tell you their numbers are multiplying at a significant clip," said Bailey.

Gov. Scott spoke from Tallahassee following the announcement and said he would not look at replacing Carroll until after the legislative session.

According to Gov. Scott's Chief of Staff, Adam Hollingsworth, Carroll's decision to resign was spurred by the investigation. Officials from the nonprofit Internet cafe company were recently arrested on racketeering charges.

The owner of Allied Veterans was arrested Tuesday in connection to allegations that he made $290 million after supplying illegal gambling software in Florida and claiming the games' proceeds would benefit a veterans group. Authorities also interviewed Carroll.

Carroll's ties to the company were questioned when she was in the Legislature after she proposed a bill that would benefit Internet cafes.

Jennifer Carroll's biography was removed from the governor's website around noon Wednesday.

She was Florida's first African-American lieutenant governor, and the first woman elected to the position. Florida's first female lieutenant governor, Toni Jennings, was appointed in 2003 by then-Gov. Jeb Bush to replace Frank Brogan, who resigned to become president of Florida Atlantic University.

Carroll becomes only the second Florida lieutenant governor to resign from the post after Brogan in 2003.

Born in Port of Spain, Trinidad, in 1959, Carroll immigrated to the United States as a young child.

———————————————

Carroll's resignation tied to Internet cafe probe

Jennifer Carroll's resignation letter to Gov. Rick Scott, dated Tuesday, offered no details about her reason for leaving. But Scott's chief of staff, Adam Hollingsworth, said she was interviewed by Florida Department of Law Enforcement officers Tuesday regarding her work with Allied Veterans of the World.

Hollingsworth's full statement:

"Lt. Gov. Jennifer Carroll consulted for Allied Veterans while serving as a member of the Florida House of Representatives in 2009 and 2010. She was interviewed by Florida Department of Law Enforcement officers Tuesday regarding her work with the company.

Lt. Gov. Carroll resigned in an effort to keep her former affiliations with the company from distracting from the administration's important work on behalf of Florida families. She made the right decision for the state and her family."

Carroll, a Navy veteran, had owned a public relations firm that represented Allied Veterans of the World.

While serving as a state lawmaker, Carroll's ties to the company were also questioned when she proposed a bill that would benefit Internet cafes.

Carroll's aides said they had no immediate comment Wednesday.  She released a statement Wednesday afternoon.

"I simply refuse to allow the allegations facing a former client of my public relations firm to undermine the important work of the governor and his administration," she wrote.

The owner of Allied Veterans was arrested Tuesday in Oklahoma on charges of racketeering. He is accused of making $290 million after supplying illegal gambling software in Florida and claiming the games' proceeds would benefit a veterans group. Oklahoma authorities say the group actually received only 1 percent of the money. Chase Egan Burns, 37, and his wife, 38-year-old Kristin Burns, both face extradition to Florida to face the charges.

Chase Burns owns International Internet Technologies in Anadarko, about 60 miles southwest of Oklahoma City.

He and his wife were arrested after an investigation that spanned several years and involved the Internal Revenue Service and various law enforcement agencies in Oklahoma and Florida, including the sheriff's office in Florida's Seminole County, Oklahoma Attorney General Scott Pruitt's office.

Chase Burns was released from the Caddo County jail Tuesday afternoon on a $500,000 bond. He denied any wrongdoing.

"What we do is legal," he told The Oklahoman on Monday, the night before he turned himself in to local authorities.

His father, Tony Burns, also serves as his attorney. Tony Burns told the newspaper that his son broke no laws.

"What Chase was doing was he was actually selling the Internet time," Tony Burns said. "That's was what his business was - providing the software. And there's nothing illegal about providing software to any business."

Tony Burns did not return a call seeking comment from The Associated Press.

A telephone number listed for Allied Veterans in St. Augustine has been disconnected. Multiple emails sent by The Associated Press to an address listed on the group's website weren't returned Tuesday evening.

The former lieutenant governor -- who is the mother of Miami Dolphins defensive back Nolan Carroll -- has been named in previous scandals.

Last year, a former aide, Carletha Cole, claimed to have found Carroll in a compromising position with a travel aide inside's Carroll's office.

Cole is charged with violating state law for allegedly giving a recording of a conversation with Carroll's chief of staff to a newspaper reporter.

Cole says she was ordered by Ramos to find adjoining hotel rooms for Carroll and Ramos when they traveled. Carroll has said previously the allegations are an attempt by Cole and her attorney to get the criminal charges against Cole dropped.

Carroll, a married mother of three, became the brunt of late-night talk show hosts when she defended herself against the allegations, saying black women who look like her "don't engage in relationships like that." She later apologized for the remarks, which implied that black lesbians are not attractive.

———————————————

Text of Jennifer Carroll's resignation letter

March 12, 2013

The Honorable Rick Scott
Governor
The Capitol, Suite PL05
Tallahassee, FL 32399

Dear Governor Scott:

Effective immediately, I hereby resign the Office of Lieutenant Governor of the State of Florida. It has been an honor to have served the State of Florida in this capacity.

Sincerely,

Jennifer Carroll
Lieutenant Governor

View a copy of the actual letter: Jennifer Carroll's resignation (PDF)

———————————————

Florida Democrats' statement on Carroll's resignation

Shortly after news broke of Jennifer Carroll's resignation, the Florida Democratic Party released the following statement from party Chairwoman Allison Tant:

"Floridians expected an administration focused on solving the problems facing Florida's families, but instead got a scandal plagued Governor and a revolving staff door.

Rick Scott and his administration have made a mockery of the Governor's office -- embarrassing Floridians while failing to accomplish his legislative priorities.

Scott campaigned on changing Tallahassee but his first three years have been more of the same corruption and waste that taxpayers have come to expect from Florida Republicans."

Governor Rick Scott's statement

Gov. Rick Scott today made the following statement at a media availability, following the resignation of Lt. Gov. Jennifer Carroll:

Local, state and federal law enforcement officials just held a press conference in Orlando, announcing that 57 individuals were charged with illegal activity linked to a $300 million conspiracy orchestrated by Allied Veterans of the World.

Law enforcement officials executed 57 arrest warrants yesterday [Tuesday, March 12] in 23 Florida counties and five additional states for individuals involved in the Allied Veterans conspiracy. They did a great job on this investigation and we appreciate their work. The joint law enforcement agencies involved put out a press release with further details on this large investigation and they can give you further information about this case.

I have been periodically updated over the course of this investigation, as it was determined appropriate by law enforcement. Out of respect to their process, that is all I will say about our knowledge of their timeline in this case.

Lt. Gov. Jennifer Carroll consulted for this company in 2009 and 2010 when she was serving in the Florida House of Representatives. FDLE interviewed Lt. Gov. Carroll yesterday related to her work for the company.

Lt. Gov. Carroll resigned yesterday in an effort to keep her former affiliations with the company from distracting from our important work on behalf of Florida families. I will not elaborate on the details of her resignation further, other than to say that she resigned and she made the right decision for the state and her family.

We appreciate her willingness to step up and serve our state. She was a tireless advocate for Florida’s military and our mission to create more jobs. We are grateful for her service.

I have asked Let’s Get to Work and Rick Scott for Governor to immediately identify any contributions from Allied Veterans or the affiliated companies named in the investigation. I want funds from these groups to be immediately given to charity. We have zero tolerance for this kind of criminal activity. Period.

Additionally, we have seen press reports that the Republican Party of Florida accepted $25,000 from Allied Veterans to fund inaugural events when I took office. The Party has no record of that contribution.

As to the future of the Lt. Gov.’s position, Florida law provides that a Lt. Gov. be in place, but we will not turn our attention to this topic until after the conclusion of the legislative session. I want to say again that: We will not turn our attention to this topic until after the conclusion of the legislative session.

We have two very important priorities this session - a $2,500 teacher pay raise and the elimination of the sales tax on manufacturing equipment - that we need to get done immediately. Those are our top priorities and we look forward to putting all of our focus on these goals and getting them done quickly, with the help of the legislature over the next few weeks.”

Attorney General Pam Bondi's statement

Attorney General Pam Bondi issued the following statement regarding the multi-state, multi-agency investigation, called “Reveal the Deal,” into Allied Veterans of the World.

“It is shameful that Allied Veterans of the World allegedly attempted to use the guise of a charitable organization to help veterans in order to lend credibility to this $300 million illegal gambling scheme,” stated Attorney General Pam Bondi. “The Office of Statewide Prosecution will be filing formal charges related to illegal gambling, racketeering and money laundering, and they will prosecute the participants in the scheme to the fullest extent of the law.”

———————————————

UPDATES

3:40 pm

▼Governor Rick Scott's full statement

▼Attorney General Pam Bondi's statement

3:35 p.m.

"We're not going to put our attention on this issue of replacing the lt. governor until after the end of session," said Gov. Scott.  In answering a reporter's question, he said he had no knowledge Carroll broke the law.

"Everything's on the table," Scott said in answer to a question about closing down internet cafes.

3:30 p.m.

"Out of respect to their process (law enforcement) that's all I'm going to talk about about any knowledge I have about the case. Lt. Governor Jennifer Carroll consulted for this company in 2009 and 2010 when she was serving in the Florida House of Representatives. FDLE interviewed Lt. Governor Carroll yesterday related to her work for this company," said Gov. Scott. "Yesterday, Lt. Governor Carroll resigned in an effort to keep her former affiliation with the company from distracting from our efforts to help make sure we do the right thing for Florida families. I will not elaborate on the details of her resignation further other than to say she resigned and she did the right thing for the state and for her family."

3:25 p.m.

Governor Rick Scott holds a press conference following the FDLE announcement.

3:16 p.m.

The task force releases a list of everyone arrested so far and what jail they are being held at. You can see it here.

2:58 p.m.

It was a WWII veteran that complained and a few others that initiated the investigation.

The press conference has ended.

2:57 p.m.

They are all charged with state violation, said Eslinger in answering a reporter's question.

Attorney General Pam Bondi answers a question about a picture with someone under investigation.

2:51 p.m.

Will not take any further questions on the lieutenant governor.

2:50 p.m.

We have exposed, revealed a group that has deceived the public, veterans, federal courts and others.  Through a 3 year investigation we've revealed a sophisticated criminal network designed for personal profit...of little benefit to veterans, said Eslinger.

2:48 p.m.

Evidence will be brought to Seminole County for further analysis. Our task force is in the process of serving seizure warrants on 292 bank accounts.

2:46 p.m.

Eslinger describes the charges all the individuals arrested will face as described by Bondi earlier.

This morning the task force executed 40 additional search warrants.

2:45 p.m.

Investigation began in July 2009 in Seminole County, Eslinger says. As it progressed, contacted Volusia County Sheriff's Office and Jacksonville, along with other law enforcement agencies, said Eslinger.

Operation began March 11, in Oklahoma where law enforcement executed a federal search warrant with company that provided the gambling software.

Yesterday, sheriff's deputies, IRS agents executed 14 federal and state warrants in multiple counties.  They included the Mathis and Murphy law firm offices in Jacksonville and Tallahasee. Arrest teams in six different states were sent to make arrests of co-conspirators.

The three main conspirators netted $36 million in cash.

2:43 p.m.

Attorney General Pam Bondi thanks Seminole County Sheriff Eslinger.

2:42 p.m.

The charges expect to be filed next week are racketeering, money laundering, keeping a gambling house, possession of slot machines, lottery and conspiracy to commit racketeering.

2:40 p.m.

Attorney General Pam Bondi thanks those involved with "Operation Reveal The Deal." According to the investigation the scheme worked through 49 illegal gambling centers.  Less than 2 percent of proceeds went to help charity, says Bondi.

2:38 p.m.

Now started reviewing gambling sites not associated with Allied Veterans of the World.

2:36 p.m.

Large sums of money spent on lobbying efforts. 57 arrest warrants with 7 outstanding

———————————————