Jacksonville attorney Kelly Mathis was identified Wednesday by
authorities as the man at the center of the alleged racketeering scheme.
Two other men charged as co-conspirators had experience running gaming
parlors, including Johnny E. Duncan, who was charged more than 20 years
ago with creating a fake charity to sponsor bingo gaming, which allowed
the games to operate tax-free. The other man, Jerry Bass, had previously
worked as general manager of a video poker parlor in South Carolina.
Authorities say Mathis made about $6 million from the operation.
During a news conference Wednesday, Florida Attorney General Pam Bondi
unveiled a poster with a photo of Mathis, linked to dozens of alleged
gambling operations. Officials say he was the registered agent for 112
businesses related to the investigation, which was handled by federal,
state and local law enforcement agencies. Nearly 60 people have been
arrested so far.
"Kelly Mathis ... appears to be the commonality of those who
were arrested,'' Florida Department of Law Enforcement Commissioner
Gerald Bailey said.
The organization under investigation, Allied Veterans of the
World, ran more than 40 Internet parlors offering computer games of
chance, until this week.
Authorities said the organization's executives gave precious
little to veterans and lavished millions on themselves, spending it on
boats, real estate and Maseratis, Ferraris and Porsches.
Bondi called the alleged scam "callous'' and "despicable'' and
said it "insults every American who ever wore a military uniform.''
The scandal has led to the resignation of Lt. Gov. Jennifer
Carroll, a Republican who once co-owned a public relations firm that
worked for Allied Veterans. She has not been charged with any
wrongdoing, but she resigned a day after she was questioned by
investigators. She said she didn't want her ties to the organization to
be a distraction for Republican Gov. Rick Scott's administration and
that she was cooperating with the probe.
Meanwhile, news reports of the investigation sent shock waves
Wednesday through the Jacksonville legal community, in large part
because Mathis is a well-known lawyer. The city's Fraternal Order of
Police president and vice president, both police officers, were also
caught up in the arrests.
Mathis, 49, is the past president of the Jacksonville Bar
Association. He headed the group about six years ago, according to Ray
Driver, the current president.
"It's unfortunate that a member of our profession is swept up in
this,'' Driver said. "I've always thought that Kelly was a very nice
guy. Very professional.''
Unlike membership in the state Bar, which is mandatory for lawyers, the Jacksonville group is voluntary.
Driver said Mathis' presidency of the group did not overlap with his tenure as Allied Veterans' registered agent.
A security guard Wednesday turned an Associated Press reporter
away at the entrance to the Jacksonville gated community where Mathis
lives, 1.5 miles from the exclusive Deerwood Country Club. The
attorney's 7,890-square-foot home on Riding Club Road has five bedrooms
and 4 1/2 baths. Duval County records show Mathis bought it in September
2008 for $875,000.
A woman who answered the phone at Mathis' law firm said no one was available to talk about his arrest.
It's unclear exactly when Mathis became involved with Allied.
According to a 2004 profile of Mathis in the Daily Record, a
business and law publication in Jacksonville, Mathis said he was known
for once running a marathon in a suit as a stunt.
He grew up in Brooksville, a small town about an hour north of
Tampa, majored in political science at Florida State and graduated from
law school at Vanderbilt University.
Mathis worked at two large law firms, and in 2003 opened his own firm in Jacksonville. He described himself as competitive.
"Part of it is can you outwork and outsmart the other
attorney,'' he told the Daily Record. "It's also ... like being a
sherpa, guiding clients through an intricate process. But, most
important, you want to prevail for a just cause. If you have a client
that has a problem that needs a resolution, you want to give them a
favorable resolution.''
On Wednesday, the lawyer sat in a Seminole County courtroom, while his own attorney argued for his release pending trial.
Mitchell Stone, who is representing Mathis, cited his client's
longtime residency in Florida and legal credentials as reasons why he is
no risk of fleeing.
"There is no need for bond,'' Stone said.
Stone also said Mathis was more than willing to surrender his passport.
A decision was postponed until Thursday.
Duncan, officials alleged, was another key co-conspirator in the
case. He is the former national commander for Allied Veterans of the
World. He was being held without bail at a county jail in Spartanburg,
S.C.
This isn't the first time the 65-year-old has been arrested on gambling charges.
In 1987, Duncan was charged with keeping a gambling house,
sponsoring unlawful bingo game and failing to follow guidelines for
games of chance in Leon County, Fla.
The AP reported at the time that Duncan pleaded no contest to
setting up a fake charity, called Army Navy Union, to sponsor bingo
games in that county.
He was sentenced to six months of probation and ordered not to operate bingo games in Florida.
"There is no evidence that any of the money collected was used for a charitable purpose,'' according to court records.
By 1989, the AP reported, Duncan was running South Carolina's
largest bingo network, with 28 games. He was described as the commander
of Army Navy Union, which sponsored the games. He also reportedly
obtained national charters and state permits that allowed bingo games to
operate as charitable activities, free from taxes.
According to the Tampa Bay Times, which reported on the Internet
cafes in 2011, Duncan and Jerry Bass met around 1995, when Bass was the
general manager of Slots of Fun, a 110-machine video poker parlor in
Fort Mill, S.C.
Bass has been arrested and no one returned a telephone call Wednesday to his home.
A telephone number listed for Allied Veterans was disconnected.
Multiple emails to an address listed on the group's website weren't
returned.
Duncan lives in Boiling Springs, S.C., a hardscrabble rural
community just north of Spartanburg, S.C. Mobile homes, mill houses and
strip malls line the two-lane road leading into the community of 8,000.
But Duncan lives in a two-story brick home with a swimming pool in the
backyard of an upscale housing development. Two of the company's
officials, Moses Ramos and Scott Pruitt, live within two blocks of
Duncan in the same community.
Ramos' wife, Beth, said her husband had been arrested but didn't want to discuss details.
"This has been hard,'' she said, standing in the doorway of her home.
She said she hoped the "truth would come out'' about Duncan.
"Really, I can't talk about him or anything. He's a good person,'' she said.
Ruth Cantrell, who is related to Duncan, also was reluctant to talk.
"He's a generous man,'' Cantrell said about Duncan. "I don't
know what happened with all that stuff, but I can tell you he's done a
lot of good for people. A lot of good. But sometimes only the bad comes
out. I hope people get to see the other side.''