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Photo: The Canadian Press. All rights reserved.

Jacksonville (FL) Sheriff John Rutherford describes a chart showing the key co-conspirators in the operation "Reveal the Deal", an investigation of illegal operations and racketeering by Allied Veterans of the World. The news conference was held inside the Jacksonville Sheriff's Office in Jacksonville, Fla. on Wednesday March 13, 2013. (AP Photo/The Florida Times-Union, Bob Mack)

Florida's lieutenant governor resigned and nearly 60 other people were charged in a scandal involving a purported veterans charity that authorities said Wednesday was a front for a $300 million gambling operation.

The organization, Allied Veterans of the World, runs nearly 50 Internet parlours with computerized slot machine-style games, which have come under scrutiny in Florida but are in a grey legal area.

Even so, investigators said the charity was a fraud and executives gave precious little to veterans while lavishing millions on themselves, spending it on boats, beachfront condos and Maseratis, Ferraris and Porsches.

Florida Attorney General Pam Bondi called the alleged scam "callous" and "despicable" and said it "insults every American who ever wore a military uniform."

Lt. Gov. Jennifer Carroll was not among those charged but resigned a day after she was questioned by investigators.

The public relations firm she co-owned, 3 N&JC, did work for St. Augustine-based Allied Veterans. A Navy veteran who served in the Gulf War, Carroll also appeared in a TV ad in 2011 promoting the organization's work on behalf of veterans and their families.

Authorities refused to discuss any ties between the 53-year-old Republican and the investigation. Her aides had no comment.