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Contributor at center of Fla. scandal donated to local legislators [Star-News, Wilmington, N.C.]
[March 15, 2013]

Contributor at center of Fla. scandal donated to local legislators [Star-News, Wilmington, N.C.]


(Star-News (Wilmington, NC) Via Acquire Media NewsEdge) March 15--State and local officials moved quickly to distance themselves from any actual or perceived ties to the owner of International Internet Technologies, a generous campaign contributor who was arrested Tuesday on charges that included racketeering and conspiracy related to sweepstakes gaming activities in other states.



According to the Florida Department of Law Enforcement, Chase Burns, 37, of Anadarko, Okla., was one of four masterminds behind Allied Veterans of the World, which "falsely claimed to be a charitable veterans' organization, but instead deceived the public and government while lining the pockets of its operators." Sweepstakes gambling is legal in Florida if most of the proceeds go to charity.

N.C. Attorney General Roy Cooper's spokeswoman, Noelle Talley, said his office is looking into what connection Allied Veterans of the World may have had to North Carolina.


Shedding donations Rep. Susi Hamilton, D-New Hanover, one of dozens of legislators to receive a contribution from Burns, said Thursday she's already written a check to charity for the $2,500 he donated to her several days before November's election. She encouraged her local House and Senate colleagues to follow suit.

"I do not know this man," Hamilton said, "don't know anything about his company and dealings, so it was an unsolicited donation. Now that we understand that this guy is a criminal and is charged with a serious crime, I've already written a check to be delivered today (Thursday) to Carolina Canines, a legitimate charity that provides training for service dogs for the disabled." Hamilton said she asked that her donation to the Wilmington nonprofit be earmarked for service dogs for disabled veterans.

The N.C. House Democratic Caucus announced Thursday all its members would make donations to veterans' charities equal to the amounts they received from Burns.

Sen. Bill Rabon, R-Brunswick, said he plans to give the $4,000 he received from Burns to either a hospice organization or the Boy Scouts.

Though Rabon said he was assured he was in compliance with all campaign contribution laws, he said, "I don't want to associate myself with that sort of donation." Gov. Pat McCrory also received the maximum $4,000 individual contributions from Burns and Burns' wife. His spokeswoman Kim Genardo said Thursday, "We were notified by the McCrory campaign about this contribution. It will be sent to charity, specifically to the Durham Rescue Mission." Sen. Thom Goolsby, R-New Hanover, recipient of $1,000 from Burns, said he had been tied up with other issues and the StarNews' inquiry was the first he had heard of the man.

"The biggest contributor to Thom Goolsby is Thom Goolsby," he said. "I work for the people of New Hanover, period, and I put my own money behind it." In addition to Hamilton, Goolsby and Rabon, Burns also locally donated $4,000 to Sen. Harry Brown, R-Onslow, and $1,000 to Rep. Ted Davis, R-New Hanover, electronic filings show.

Davis said he had just learned of the situation and planned to either give the money back or donate it to charity, his preference being the latter.

"If this guy has done something improper I'm not interested in keeping his donation," he said.

Brown couldn't be reached Thursday.

The donations to the local delegation were a small piece of the reported $154,000 Burns has doled out to mostly Republican politicians statewide in recent years, in addition to the state Republican Party. Officials from the state party did not return phone calls seeking comment.

Moore & Van Allen, PLLC, which was representing Burns' company as a lobbyist, dropped him as a client immediately after the scandal hit news pages.

Legal tangles Though Burns and his company have ties here, no North Carolinians were among those charged in what has been dubbed operation "Reveal the Deal." Allied Veterans was registered as a charitable organization with the N.C. Secretary of State's office until May 2012, and the state has been tangled in legal battles with International Internet Technologies over its sweepstakes gambling operations for years until a Supreme Court decision handed down late last year ruled that its operations are illegal in this state.

The company has also battled in court with the city of Wilmington and other municipalities over the taxes they had imposed on the industry. Wilmington's attorney declined comment, citing pending litigation on a similar matter.

Talley, the attorney general's spokeswoman, said the office's advice to law enforcement at this point "is that they investigate any video sweepstakes operations in their area to determine what games are being played, consult with their local district attorney, and then take any enforcement action they think necessary against violators." "They are welcome to consult with our office as well," she said.

Florida scandal Burns is accused of making $290 million after supplying illegal gaming software in Florida and claiming the games' proceeds would benefit Allied Veterans of the World. Florida's lieutenant governor has resigned related to work done for the purported charity by her public relations firm, though she was not accused of wrongdoing. Nearly 60 other people were charged in the scandal that so far has reached six states: Florida, South Carolina, Georgia, Alabama, Nevada and Pennsylvania.

Gerald Bailey, commissioner of Florida's Department of Law Enforcement, said the arrests are only round one of the investigation and the second wave will look at the "large sums" spent on lobbying and political donations, according to The Associated Press. He did not provide details.

Burns' lobbying team in Raleigh included Tommy Sevier, former chief of staff to Senate President Pro Tempore Phil Berger.

Sevier did not respond to requests for comment, but Moore & Van Allen spokesman Brian Nick emailed a statement that said: "The firm worked with the IIT (International Internet Technologies) in North Carolina on legislative strategy and media outreach." He declined further comment.

This report contains material from The Associated Press.

Metro desk: 343-2389 On Twitter: @StarNewsMolly ___ (c)2013 Star-News (Wilmington, N.C.) Visit the Star-News (Wilmington, N.C.) at www.starnewsonline.com Distributed by MCT Information Services

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