SEMINOLE CO., Fla. -- A local, state and federal investigation into internet cafes has resulted in warrants for the arrest of 57, including one person in our local area.
Attorney General Pam Bondi says charges will include racketeering, conspiracy, money laundering and possession of slot machines. The suspects are accused of being involved in $300 million conspiracy orchestrated by Allied Veterans of the World. The organization was reportedly running 49 illegal gambling centers masquerading as internet cafes.
Though the company is listed as a tax-exempt non profit, investigators found that during the period January 2008 to January 2012, less than 2 percent of the $300 million in gambling center revenues was given to charity.
According to an FDLE release, the organization "falsely claimed to be a charitable veterans’ organization, but instead deceived the public and government while lining the pockets of its operators."
FDLE says the four main conspirators are Johnny Duncan, 62, of Boiling Springs, S.C., Jerry Bass, 62, of Jacksonville, Fla., Chase Burns, 37, of Fort Cobb, Okla., and Kelly Mathis, 49, also of Jacksonville, Fla. Investigators believe the four received more than $90 million proceeds from the scheme. They are charged with Racketeer and Influenced Corrupt Organizations (RICO); RICO conspiracy; manufacture, sale, possession of slot machines; lottery; keeping gambling houses; and money laundering. Duncan was booked into the Spartanburg County Detention Facility (South Carolina), Bass was booked into the Jacksonville Sheriff’s Office Jail, Burns was booked into the Caddo County Jail (Oklahoma), and Mathis was booked into the John E. Polk Correctional Facility in Seminole County.
The other 53 suspects reportedly made an estimated $194 million combined from the ruse. They are from the following states: Florida, Alabama, South Carolina, Pennsylvania, Nevada and Georgia. They face multiple counts of gambling, slot machines, lottery, money laundering and RICO.
Law enforcement began executing the 54 search warrants and 57 arrest warrants Tuesday, March 12, in 23 counties across the state of Florida and five other states. As of 1 p.m. on March 13, 49 people have been arrested. Slot machines, records, 80 vehicles and vessels, 170 properties, and 260 bank accounts estimated to be worth tens of millions of dollars have been seized.
Locally, a search warrant was served at an internet cafe on South Monroe Street. Reginald Medlin, 46, was arrested. He will be transported to Seminole County to face illegal gambling and money laundering charges.
Florida Lieutenant Governor Jennifer Carroll resigned due to the fact that she previously did public relations for Allied Veterans for the world.
