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Florida Lt. Governor resigns amid Internet gambling probe

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"In an effort to mislead the public into believing that it is not profiting from an illegal gambling enterprise, Allied Veterans and others have engaged in a conspiracy and scheme to defraud," the affidavit said.

Carroll's aides said they had no immediate comment Wednesday.

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.

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. But the bill was withdrawn before the 2010 Legislative session started. She told the "Florida Times-Union" at the time, that the bill was filed by a member of her staff without her approval.

The owner of the company accused of supplying the cafes with illegal gambling software was arrested Tuesday in Oklahoma. Chase Egan Burns, 37, faces charges of racketeering. He heads Anadarko, Okla.-based International Internet Technologies.

Burns is accused of making $290 million after supplying the software in Florida and claiming the games' proceeds would benefit Allied Veterans. Oklahoma authorities said the group actually received only 1 percent of the money. Burns and his wife, 38-year-old Kristin Burns, both face extradition to Florida to face the charges.

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