Florida legislators rush to unload tainted gambling cash

Herald/Times Tallahassee BureauMarch 19, 2013 

Shamed by the notion that they may have filled their political coffers with more than $1.4 million in campaign cash from a phony veterans group facing charges of illegal gambling, the Florida Legislature is scrambling to save face by donating the money to charity.

Rep. Steve Crisafulli, a Merritt Island Republican slated to be House speaker in 2016, sent a letter to his Republican colleagues Monday saying that he's giving away the $3,500 in questionable cash he received to a local veterans group. He suggested other legislators do the same and even attached a list of the suspected companies.

"The information that has come to light regarding the Allied Veterans group and their affiliates is outrageous,'' he wrote. "These allegations of fraud especially in the name of those who risk it all in defense of freedom and our nation -- must be prosecuted and punished to the fullest extent of the law."

Allied Veterans of the World and its 57 owners and operators have been charged with operating a $300 million racketeering, gambling and money laundering scheme under the guise of charity. A Herald/Times analysis found they used 60 different organizations and 34 individuals to steer more than $1.4 million to state and federal campaign accounts between 2008-2012.

Investigators reported this week that one alleged conspirator, Nelson Cuba, former head of the Jacksonville Fraternal Order of Police, had $56,400 stuffed in a safe deposit box along with five million Iraqi dinars -- worth $4,300. Police also seized $583,507 in cash, 59 vehicles and vessels, and frozen $100.6 million in bank accounts, the Seminole County Sheriff's office announced.

The list of politicians who were beneficiaries of the Allied Veteran's political largess spans the political spectrum and reaches every corner of the state.

Reached in Tallahassee Tuesday, Rep. Darryl Rouson, D-St. Petersburg, whose district includes portions of Manatee and Sarasota counties, said he acknowledges the contribution he received and is going to soon make a decision regarding it.

"I haven't been commenting publicly on this, but I can tell you at the end of the day I play to do the right thing," Rouson said. "I am studying it and looking at it. This caught a lot of people quickly. I was aware when the stuff hit the fan in the newspapers. There was a contribution. This hit quickly and we will do the right thing."

According to the Herald/Times analysis, the largest beneficiaries included the Republican Party with $288,500, the Florida Democratic Party with $159,500, Sen. Jack Latvala, R-St. Petersburg, and his political committees with $40,000, House Speaker Will Weatherford and his political committee with $15,000 and Rep. Kevin Radar, D-Delray Beach with $14,000.

Sen. Chris Smith, D-Fort Lauderdale, who received $4,500 from Allied Veterans affiliates said he has directed staff to compile a list of all groups that owned Internet cafes, and identify any questionable donations to the Senate Democrats political committee -- even though the accounts are empty of cash and have been closed.

Weatherford's office was not aware his campaign had taken $15,000 from one of the Allied Veteran's affiliates until the Herald/Times alerted him. But he noted that contributions to his political committee, Citizens for a Conservative Democracy, had already been given to the Republican Party. RPOF chairman Lenny Curry last week announced the party would donate $300,000 to the Florida Veteran's Foundation, a state-run charity intended to benefit veterans.

"I have always supported and voted for a ban on Internet Cafes and I expect the House to once again vote to ban them this year,'' Weatherford said in a statement.

Latvala said he is donating all $40,000 he raised to a Tampa Bay area veteran's charity. "If people want to give me money, that's their decision,'' he said. "I was told they were legitimate businesses."

Sen. Nancy Detert, R-Venice, said she has instructed her treasurer to return the $5,500 she received from Allied Veterans. She does not want to donate to charity because she is concerned that the charity could be forced to pay it back if creditors of the affiliated companies use the state's claw back laws to get their money.

"I don't want to harm some charities just because we want to look like we're doing something good,'' she said.

Allied Veterans was part of a political coalition of Internet cafe owners who last year pushed for legislation that would have legalized their enterprise by clarifying state law that the software-based technology was a legitimate sweepstakes game. Efforts to clarify the law and regulate them passed a Senate committee, but was stymied when the House insisted on banning them.

Now prosecutors say the machines are clearly illegal because they operate as online slot machines. The Legislature is rushing to ban them completely, rather than pursue more regulations or taxes.

Sen. Miguel Diaz de la Portilla, among the chief advocates for regulating and not banning the machines, said he received $5,500 from Allied Veterans and has spent the funds.

"The money was raised in 2011 and spent in 2012,'' he said. "It's gone."

-- Herald reporter Richard Dymond contributed to this report.

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