Florida's Lieutenant Governor Jennifer Carroll resigned and nearly 60 other people were charged in a scandal involving a purported veterans charity that authorities said Wednesday was in fact a $300 million front for illegal gambling. The organization Allied Veterans of the World runs more than 40 Internet parlors offering computer games, which are normally legal in Florida if most of the proceeds go to charities. Yet authorities say the organizations actually gave little to veterans. Instead, they lavishly spent on themselves, spending the wealth on boats, real estate and fancy cars, according to the Associated Press.

Florida Attorney General Pam Bondi labeled the alleged scam as "callous and despicable, and insults every American who ever wore a military uniform." Carroll, a Navy veteran who served in the Gulf War, resigned a day after she was questioned by investigators, even though she was not among those charged. Her public relations firm worked for the Allied Veterans, and while her aids had no comment, Republican Governor Rick Scott indicated that she resigned as her ties would not be a distraction for the administration.

"It is shameful that Allied Veterans of the World allegedly attempted to use the guise of charitable organization to help veterans in order to lend credibility to this $300 million gambling scheme," Bondi said. The charges will formally be filed next week, including racketeering, conspiracy, money laundering and possessions. "Authorities said they seized about 300 bank accounts containing $64.7 million, as well as sports cars and other property, according to the AP. 50 internet cafes under the Allied Veterans umbrella were raided Tuesday, accused of money laudering and racketeering under the RICO Act.

Jacksonville lawyer Kelly Mathis was identified by authorities as the mastermind of the Allied Veterans scheme, allegedly making about $6 million from the operation. e investigation involved 57 arrest warrants and 54 search warrants issued in Florida and five other states: South Carolina, Georgia, Alabama, Nevada and Pennsylvania. As of mid-afternoon, 49 people had been arrested. Allied Veterans' 49 parlors in Florida were raided and shut down. Carroll had been involved in political scandals in the past involving inappropriate behavior with a staffer.