The agent reported Allied Veterans represented that anywhere from 70 percent to all of its net proceeds from the centers went to charitable causes, but actually only about 2 percent did.
“For the time period from 2007 to early 2012, investigators found evidence of over $6 million in what appear to be charitable donations by Allied Veterans.
“That amount, however, was only about 2 percent of the over $290 million in proceeds … made from the gambling operations during that time period,” the IRS agent reported.
“Instead of going to charity as is represented, the vast majority of the revenue earned from the gambling operation went to for-profit companies and the individuals who operated Allied Veterans and its ‘Affiliates.’ To hide the true nature of its gambling operation from the public, Allied Veterans and others resorted to fraud and misrepresentations,” the IRS agent reported.
The agent also reported that Allied Veterans claimed it sold its Internet casinos last April when it actually did not.
“With a few exceptions, the for-profit companies that allegedly purchased the Internet casinos are the same ones that were already operating them,” the agent reported.
A criminal charge is expected to be filed against Burns this month. He is the son of former District Attorney Tony Burns.
In addition to directing the operations of IIT, Chase Burns owned two of the Florida Internet casinos, federal authorities allege.
The investigation into the Florida Internet casinos has been under way for years.
Agents conducted surveillance of the IIT building in Anadarko in November 2011 and December 2012, according to the search warrant affidavit.