FLORIDA DEPARTMENT OF LAW ENFORCEMENT INVESTIGATIVE REPORT

On March 12, 2013, Inspector Brett Lycett and Special Agent Supervisor Rick Ward conducted an interview with Florida Lieutenant Governor Jennifer S Carroll in Tallahassee, Florida. Carroll was being interviewed regarding her relationship with Allied Veterans of the World (AVOTW). AVOTW was the subject of a multi-state, multiagency investigation regarding their operation of illegal gambling centers within the state of Florida. Carroll's consulting firm, 3N & JC, was employed by AVOTW from 2009 through 2010. The following is a summary of Carroll's interview: Carroll advised that she first became involved with AVOTW when contacted by Jerry Wayne Bass to discuss hiring her as a consultant. Carroll indicated that lobbyist Joe Mobley had referred and recommended her to AVOTW as a possible candidate because of her background as a veteran and a small business owner. Carroll explained that she was hired as a consultant for AVOTW to address the public relations aspect of their business. As a consultant, Carroll recommended to AVOTW to post in their facilities the state statute that governed their gaming operations, institute security measures, and ensure the businesses were operating in accordance with state statutes. Carroll explained that at the time of her hiring, there were issues related to the understanding of the differences between sweepstakes and regular slot machines. Carroll explained that she advised AVOTW how to "differentiate themselves in a PR way to make sure that both the legislative side and the community understood the difference between those arcade type of slot machines inside the gas stations and how they fell under a different regulation and how the operations of the sweepstakes should be conducted and also known to the public and the legislators." Carroll indicated that AVOTW was attempting to have the Florida Department of Agriculture and Consumer Services (DACS) define the difference between the gambling machines found in gas stations and the computer machines utilized in AVOTW facilities. Carroll explained that for approximately five years, DACS had language they "were trying to push through the legislature and could not get it moved through." Carroll stated that she spoke with DACS to review the language in an attempt to have the difference between sweepstakes further explained, defined and subsequently regulated. As it related to her understanding of the AVOTW operations, Carroll explained that she visited multiple AVOTW facilities and spoke with patrons as well as employees to become familiar with the businesses. Carroll stated that she had conversations with Bass who explained how the

Case Number: EI-14-0126 Author: Lycett, Brett L. Activity Start Date: 03/12/2013 Approved By: Ward, Richard Allan Description:Jennifer Carroll Interview

Serial #: 5 Office: Executive Investigations Activity End Date:03/12/2013

THIS REPORT IS INTENDED ONLY FOR THE USE OF THE AGENCY TO WHICH IT WAS DISSEMINATED AND MAY CONTAIN INFORMATION THAT IS EITHER PRIVILEGED OR CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. ITS CONTENTS ARE NOT TO BE DISTRIBUTED OUTSIDE YOUR AGENCY.

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machines used in the AVOTW facilities were different from slot machines, giving her a general knowledge of their operations. Carroll said that she was provided information from Bass regarding the companies that "certified" the machines within the AVOTW facilities. Carroll said that she was under the impression that the machines being used were following the requirements defined by state statute for sweepstakes. When asked who she spoke with from AVOTW regarding her "PR" role for the business, Carroll indicated that she spoke with either Kelly Mathis, who she identified as the attorney for AVOTW, and/or Jerry Bass. When presented with the name Chase Burns, Carroll indicated she did not recognize the name. When presented the name Johnny E. Duncan, Carroll indicated that she may have met him, but never spoke with him regarding her business activities. Carroll was asked if she believed there was any conflict of interest between her role as a legislator and acting as a consultant for AVOTW. Carroll indicated no, and then proceeded to discuss a bill (HB 1185) filed by her in 2010. Carroll explained that she, with assistance from DACS, started drafting legislation that would affect the gaming promotions industry, which would have included AVOTW. Carroll indicated that it was not her intent to sponsor the bill, but it was supposed to be used as a "placeholder". Carroll explained that her aide, Michelle Fowler, mistakenly filed the bill on Carroll's behalf. Carroll stated that as soon as she discovered Fowler submitted the bill, she had her withdraw the bill. Carroll stated she never gave Fowler permission to submit the bill. Carroll advised that AVOTW was not involved in the drafting of the legislation. Carroll indicated that she did not want to be involved with the submission of legislation because of her involvement in working for AVOTW and the possible conflict. Carroll said she did not have any concerns about her relationship with AVOTW, because she did not see them as a gambling operation, and believed her work as a consultant did not conflict with her work as a legislator. Carroll advised that she had a contract with AVOTW, but could not recall whether she was paid either $3000 or $6000 a month as a retainer. Carroll stated she received her retainer via check, which was mailed to her by AVOTW. Carroll explained the checks were deposited into her business account by her, and claimed on her taxes and her state financial disclosures. Carroll indicated her business expenses included travel cost, personal time and other related administrative costs. Carroll advised that her husband was not involved in any of her activities related to AVOTW. Carroll also advised, regarding her work for AVOTW, her business was operated out of her home. When asked if she transferred the consulting fees she received from AVOTW into any of her personal accounts, Carroll stated she did not and that it stayed in her business account. Carrol was advised that upon review of personal financial documents, FDLE discovered she transferred a large percentage of the money she received from AVOTW into her personal bank account (Carroll received $96,000 from AVOTW between September 2009 through November 2010, and she transferred $85,299 into her personal bank account). Carroll was asked why the money was not identified on her financial disclosure forms (2009 and 2010 Form 6) which Carroll indicated she had completed herself. When reviewing copies of her financial disclosure forms, Carroll explained that she completed her original 2009 disclosure form, but the amendment that was made was facilitated by a company (MRW Consulting Group, LLC.) that the Governor's personal attorney instructed her to use to assist in completing the amended 2009 disclosure form.

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Carrol advised that she provided MRW Consulting Group with business and tax records to complete her 2009 taxes and financial disclosure form. Carroll was also shown her 2010 disclosure form which mirrored her 2009 disclosure form showing that she made less than $1000 regarding her business activities with 3N & JC. Carroll explained that she completed the 2010 form by copying the 2009 form, because no financial information had significantly changed. Carroll admitted that the disclosure forms were wrong and it was her fault for the lack of oversight relating to the reporting of income she had personally received from her consulting business. Carroll was asked if she was familiar with the names Robert Freitas, and Nelson Cuba. Carroll indicated that she did not recognize the name Freitas, but knew Cuba as the President of the Fraternal Order of Police out of Jacksonville, Florida. Carroll explained that she knew Cuba from a variety of political events. When asked if she knew if either Freitas or Cuba were involved in any business activity with AVOTW, Carroll replied that she did not know if they were involved with AVOTW. In addition to her business relationship with AVOTW, Carroll was also advised that FDLE had discovered four separate transactions from her 2010 campaign account where she transferred approximately $6000 to her personal accounts. Carroll was further advised that these transactions were not reported on her campaign expenditure reports. Carroll indicated that she did not know what the transfers were for and would review her records and provide an explanation. Carroll believed it may be related to the closing out of her 2010 campaign account and the disbursement of surplus funds. Carroll was provided the dates and amounts of the transfers referenced by FDLE to assist in her review. An audio copy of Carroll's interview will be maintained in the Related Items (7) section of this investigative file.

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