Over 100 businesses seized from Pinellas businessman accused of taking $100M from special needs trusts
ST. PETERSBURG, Fla. - In a ruling issued this week by a federal bankruptcy judge, the court seized control of more than 100 businesses owned by Leo Govoni, a Pinellas County businessman who's accused of taking $100 million in loans from the Center for Special Needs Trust in St. Petersburg and never paying back the funds.
What we know:
The list of businesses includes Big Storm Brewing, which Govoni and his son, L.J. Govoni, turned into one of the most popular local breweries in the Tampa Bay area before Leo Govoni's legal troubles began last year.
Court records show Govoni is accused of using millions of dollars of improperly-obtained money to help fund the brewery.
The Center, which Govoni founded, filed for bankruptcy last year after realizing $100 million in loans given to Govoni and one of his companies was never returned. More than 1,500 trusts belonging to disabled clients were partially or fully drained, according to court records. Some of that money, according to the plaintiffs, was given to Big Storm.
Court-appointed officials will now determine which of Govoni's former businesses to sell and whether that will include Big Storm's Clearwater tap room. They could decide to keep it open as a cash-flow to help pay back some of the trust funds that were depleted.
Big Storm had previously closed several of its stores in other parts of the state.
"I think that getting the funds back to the beneficiaries is really priority number one," Megan Murray, an attorney for some of the victims and their families, told FOX 13 last month. "It is very frustrating, and I could tell you from our constituents that call me on a daily basis looking for funds to pay for medical bills and clothing and really critical needs that they're frustrated too."
Court records show, after receiving the loans during a 10-year period, Govoni lived a lavish lifestyle, which included purchasing a private jet and expanding his business ownership. The full picture regarding how the money was spent, however, remains unclear.
What's next:
Govoni is due back in federal court next week, where he's required to produce outstanding financial documents connected to his properties.
MORE: Businessman accused of stealing $100M from nonprofit's disabled clients found in contempt of court
A judge held him in contempt of court for failing to produce the information last month. The judge threatened to recommend a criminal contempt charge if Govoni doesn't provide the documents.
The other side:
In court, Govoni has blamed former attorneys and accountants for his inability to produce the financial documents. Attorneys for the plaintiffs and the judge have rebuked those excuses and demanded he find a way to get the information.
FOX 13 has attempted multiple times, including in person, to ask Govoni where the money is, whether he has anything to say to his former clients, and whether he has any remorse. He has not answered our questions.
He also didn't respond to recent text messages asking for comment from him and his son regarding the developments surrounding Big Storm.
The Source: The information in this story was gathered by FOX 13's Aaron Mesmer.
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