Florida Lt. Gov. Jennifer Carroll abruptly resigned Tuesday night in the wake of a federal investigation into a veterans’ charity she had previously done consulting work for, which prosecutors allege is a front for a lucrative internet gambling operation.

As the Wall Street Journal reports, Carroll’s resignation came as a result of her past work on behalf of Allied Veterans of the World, an organization registered as a nonprofit with the Internal Revenue Service. She revealed the news of her departure Wednesday, when law enforcement officials at the local, state and federal level announced they had arrested 57 people in six states on charges including racketeering, illegal gambling and money laundering. Carroll, 53, was questioned by authorities but not placed under arrest.

According to Reuters, Carroll was co-owner of a public relations firm that represented the ostensible charity, as well as worked for the group while she served in the Florida House of Representatives.

Expressing a belief that she and her company were not targeted by the investigation, Carroll said she resigned because she “could not allow [her] company's former affiliation with Allied Veterans to distract from the administration's important work for the families of Florida.”

 Carroll is one of the highest-profile African-American politicians and a handpicked choice of Gov. Rick Scott in an attempt to broaden the appeal of the Republican Party. Scott’s popularity had been precipitously declining in recent months, with only 33 percent of Floridians approving of his job performance according to a January poll from Public Policy Polling. Carroll’s unceremonious departure is yet another hit for him politically.

Allied Veterans of the World operated internet cafes in Florida, which prosecutors allege were fronts for a large-scale internet gambling operation. As the Wall Street Journal reports:

“Allied Veterans couldn't be reached; the group's main phone number has been disconnected. The group's last public filing to the IRS states its total revenue for 2009 was $57,714. Law-enforcement officials, however, allege the group ‘ran gambling centers and illegal slot machines, funneling the illegal proceeds through a sophisticated web of for-profit corporations that paid off’ the chief conspirators. Over a four-year period, the gambling operation allegedly brought in about $300 million, and donated less than 2 percent of that revenue to charity, while the four main co-conspirators took in more than $90 million, law-enforcement officials said in a statement. In addition to multiple arrests, officers also seized property, gambling machines, vehicles, computers and bank accounts.”

Scott released a statement saying Carroll “made the right decision for the state and her family.”

Reach Executive Producer Matt Pressberg here.