Pinellas businessman accused of stealing millions from special needs trusts may soon have assets unfrozen
ST. PETERSBURG, Fla. - A Pinellas County businessman accused of stealing millions of dollars from two companies that oversee funds for people with special needs may have his assets unfrozen following a potential agreement with the Florida Attorney General's office.
According to a civil complaint, more than $2 million is missing from dozens of trust fund accounts connected to Directed Benefits Foundation, a nonprofit operated by Leo Govoni. The company handles the accounts of people who, in some cases, have severe disabilities and are counting on the money lasting for most or their entire lives.
The lawsuit filed by the state accuses Govoni and his business partners of "creating false accounting records...to conceal its wrongdoing and evade detection."
In May, a judge issued an injunction halting Directed Benefits Foundation's activities and freezing the assets of its officers, including Govoni.
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Kylie Mason, a spokesperson for Florida Attorney General Ashley Moody, confirmed on Wednesday the state and attorneys for Govoni agreed this week on a framework to potentially unfreeze his assets. They told FOX 13, "Those papers are being prepared. They will be filed soon when the details are finalized. The judge will then consider those papers, but has not officially ruled yet or 'agreed.' In the meantime, the freeze is still in effect."
Tampa attorney Anthony Rickman, who is not involved in this case, said unfreezing Govoni's assets could help the alleged victims.
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"The freezing of the assets doesn't just prevent the defendants from moving the money, but also prevents people who put this money in trust from accessing those funds," Rickman explained. "The government has agreed with the defendants now to allow them to unfreeze those funds and allow the trustees to potentially get their money back."
It's unclear, however, how much of each clients' money remains in their trust funds. The potential agreement would require Govoni to offer his own assets as collateral for the missing money.
"For instance, if there's $2 million in funds, this defendant's got to show he has $2 million with the property they can lien against those funds, or $2 million in assets that they can use as collateral," Rickman said.
The accusations in the Directed Benefits Foundation case are similar to the ones Govoni already faces in the federal bankruptcy case involving the Center for Special Needs Trust Administration, a non-profit he also founded.
Govoni is accused of taking $100 million in loans during an 11-year period from the Center that he never paid back. Court records show the accounts of at least 1,500 clients, some severely disabled, were partially or entirely drained.
The Center is now under the supervision of a court-appointed Trustee, Michael Goldberg, who is also making claims on Govoni's assets.
Neither Govoni nor his attorneys responded to a request for comment on Wednesday, but Govoni has previously told FOX 13 he disputes the allegations against him in the Center for Special Needs Trust Administration case.
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