Pinellas businessman accused of stealing $100M from special needs trusts indicted on federal charges
TAMPA, Fla. - Pinellas County businessman, Leo Govoni, and his partner, John Weitek, who are accused of stealing $100 million from trust funds for people with disabilities, are now both facing over 200 years in jail, according to United States Attorney for the Middle District of Florida Greg Kehoe.
Case against Leo Govoni
The backstory:
Govoni has been in the spotlight ever since the Center for Special Needs Trust Administration, the St. Petersburg nonprofit which he founded in 2000, went bankrupt in April 2024.
The nonprofit oversaw the trust fund accounts of disabled clients, many of whom counted on that money to be there for medical and living expenses for the rest of their lives.
Govoni is accused of "loaning" over $100 million to the Boston Finance Group before the money was eventually funneled back to Govoni, Weitek and others, allowing them to fund other businesses.
Court records show since 2009, 1,500 trust funds have been partially or fully drained and many of the funds belonged to children.
Booking photo of Leo Govoni. Courtesy: Pinellas County Jail.
As of February 2024, 2,100 special needs trusts were active, containing about $200 million in assets.
"Protecting the most vulnerable members of our society is a priority of the U.S. Attorney’s Office," said Kehoe. "The fraud alleged in this nationwide scheme is unfathomable. Due to the diligence and interagency collaboration by our dedicated law enforcement partners, these crimes will be prosecuted to the fullest extent of the law."
What are special needs trusts?
They are legal arrangements to protect someone’s assets, and they are often set up for victims who have received money from lawsuits and settlement awards intended to compensate them for injuries that caused their disability.
This type of trust allows these individuals to still collect government benefits like Medicaid and Supplemental Security Income.
These victims living in Florida and across the U.S. are now relying on government assistance to pay for their basic needs.
Man accused of stealing $100M from special needs trusts
Leo Govoni, the Pinellas County businessman accused of stealing $100 million from trust funds for people with disabilities, now faces 15 criminal charges, according to a federal grand jury indictment.
What did Govoni promise?
According to Kehoe, Govoni promised the victims that he would protect them and invest the money wisely.
Kehoe says that the money was eventually used as a slush fund to finance his own business ventures and those of his sons.
Those businesses included over 100 companies not connected to the Center for Special Needs Trust Administration.
The cover-up
To conceal the fraud, Weitek, who was the accountant for several of Govoni’s companies, is accused of sending false accounting statements to the victims each year.
In 2017, he and Govoni funded a tax and accounting services company together.
When trust beneficiaries needed money to cover certain expenses, Kehoe says that Weitek and Govoni would dig into the funds of newer clients, covering up one fraud with another.
Pictured: Leo Govoni.
"The scale and audacity of the alleged fraud in this case are deeply troubling," said Criminal Investigation Chief Guy Ficco of the IRS. "Stealing funds intended to protect and support people with special needs is as cruel as it is criminal. IRS-CI special agents are dedicated to uncovering complex financial schemes, especially those that prey on the most vulnerable in our society."
Timeline:
Earlier this month, the court seized more than 100 of Govoni's businesses, including Big Storm Brewing. A court-appointed trustee will determine if they sell the properties to try to recuperate some money for the victims.
Kehoe says that the major kicking-off point in the investigation was when the Center filed for bankruptcy.
Govoni faces 265 years in jail and Weitek faces 220 years in jail.
Dig deeper:
A 32-page grand jury indictment obtained by FOX 13 on Monday shows that Govoni faces the following charges:
- Conspiracy to commit mail fraud and wire fraud
- Mail fraud (four counts)
- Wire fraud (six counts)
- Money laundering conspiracy
- Bank fraud
- Illegal monetary transactions
- False bankruptcy declaration
The recent indictment is a formal charge that the defendant has committed one or more violations of federal criminal law.
All dependents in this case are presumed innocent unless, and until, proven guilty.
The Source: This story was written with information from the U.S. Attorney's Office, a criminal indictment, and previous FOX 13 News reports.
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