Special needs trust fund company files for bankruptcy, founder accused of taking $100M
ST. PETERSBURG, Fla. - The founder of a Pinellas County trust fund company that manages funds for people with special needs is accused of taking $100 million and causing the business to file for bankruptcy.
The Center for Special Needs Trust Administration entered a bankruptcy filing on Feb. 9 and detailed an investigation that uncovered the missing money.
According to court documents, the Center's founder, Leo Govoni, issued himself loans totaling $100 million between 2009 and 2020 that he never paid back. The filing indicates an internal investigation found no record that any loan was ever officially approved.
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"I think the missing funds came out of the blue," said Beth Leytham, a spokesperson for the Center.
According to the filing, Govoni transferred the money to one of his other companies, Boston Finance Group. He's accused of keeping the loans secret by contracting out control of the Center's finances, accounting and IT work to companies he also controlled.
Leytham said, as a result, the accounts of more than 1,000 of the Center's 2,000 clients have been partially or entirely drained.
"They are heartbroken over this and working nearly round the clock, no stone unturned, to figure out how we can get as much of those funds back where they belong as possible," Leytham told FOX 13. "We will be looking not just at bankruptcy, but any and all legal remedies to do as much as we can."
In a statement to FOX 13, Govoni wrote, "I dispute the allegations and characterizations in the filings of the Center as to the mishandling of any of the Center’s funds. I look forward to resolving this issue through the bankruptcy process or otherwise."
The Center, meanwhile, alleges one of Govoni's businesses that manages the trust's IT operations has locked employees out of accessing the company's financial records.
Leytham said current leadership is hoping, through the bankruptcy filing, they'll be able to access the financial records and learn more about where the money went.
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