Florida's lieutenant governor has resigned over her alleged connection to a military veterans charity now under federal investigation.
Republican Gov. Rick Scott revealed on Wednesday that Lt. Gov. Jennifer Carroll had submitted her resignation letter to him earlier this week.
Before joining Scott's administration, Carroll had conducted consulting work for the non-profit, Allied Veterans of the World, that is now accused of alleged money laundering.
News of her departure came just one day after the 53-year-old politician was questioned by investigators about her connection to the non-profit.
The organization had run 39 internet cafes across Florida and claimed to donate the proceeds to veterans charities but officials allege the non-profit only used 2 per cent of the $290 million it collected over five years to charity work.
The cafes also allowed customers to participate in electronic sweepstakes and officials say the centers were allowing illegal gambling.
The group has been accused of money laundering, using money from a nonprofit for personal gain and misrepresenting the amount donated to charities. On Tuesday, officials from the group were arrested.
Carroll's consulting firm, 3N & JC, had performed consulting work for Allied Veterans and she even starred in a commercial for the organization in 2010, according to The Florida Times Union.
A Navy veteran, Mrs Carroll was selected by the Republican gubernatorial candidate in 2010 but decided to step down when the recent scandal over her alleged involvement with the group became a distraction, according to a representative for Gov. Scott.
'Lt. Gov. Jennifer Carroll consulted for Allied Veterans while serving as a member of the Florida House of Representatives in 2009 and 2010,' Gov. Scott's Chief of Staff Adam Hollingsworth said in a statement.
'She was interviewed by Florida Department of Law Enforcement officers Tuesday regarding her work with the company.'
'Lt. Gov. Carroll resigned in an effort to keep her former affiliation with the company from distracting from the administration's important work on behalf of Florida families. She made the right decision for the state and her family.'
The Governor is expected to hold a press conference on Wednesday afternoon to discuss the issue
Carroll is a longtime GOP insider in the Sunshine State, beginning her formal role in public service under former Florida Gov. Jeb Bush.
In 2000, he appointed her the Executive Director of the Florida Department of Veterans Affairs.
She was elected to the Florida House of Representative in 2003, the first African American female Republican to serve. She stayed in the House until 2010.
Additionally, under Gov. Bush's brother, President George W. Bush, she was appointed to serve on the Commission on Presidential Scholars from 2001 to 2004 and on the Veterans' Disability Benefits Commission from 2004 to 2007.
This isn't the first hint of scandal to taint Carroll.
In November 2011, her former administration aide, Carletha Cole, alleged that she had witnessed the then Lt. Governor engaged in a sex act with another woman in her office.
Carroll adamantly denied the salacious allegations saying she has been married for 29 years and her 'husband knows the type of woman I am.'
'Usually black women that look like me don't engage in relationship like that,' she giggled in a statement to a local reporter at the time.
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