News Summary
Two men from Florida, Leo J. Govoni and John Leo Witeck, have been indicted for allegedly misappropriating more than $100 million from funds designated for individuals with special needs. The charges include conspiracy to commit wire and mail fraud, mail fraud, wire fraud, and money laundering. The fraudulent activities involved using trust funds for personal expenses instead of aiding vulnerable individuals. As the case unfolds, the repercussions for affected families are significant, raising concerns about the management of special needs funds.
Clearwater, Florida – Two Florida men, Leo J. Govoni, 67, of Clearwater, and John Leo Witeck, 60, of Tampa, have been indicted for allegedly stealing over $100 million from people with special needs. The United States Attorney for the Middle District of Florida has filed charges against the pair, claiming they misappropriated funds intended for caring for vulnerable individuals.
The indictment outlines multiple charges against both Govoni and Witeck. They face a count of conspiracy to commit wire and mail fraud, three counts of mail fraud, six counts of wire fraud, and a conspiracy to commit money laundering. If found guilty on all counts, they could face prison sentences exceeding 100 years.
Govoni and Witeck’s fraudulent activities often involved contributions made by families to a Special Needs Trust, which was designed to safeguard funds for specific care needs. However, the indictment alleges that the defendants diverted these funds for personal use rather than fulfilling their intended purpose. Specifically, Govoni is reported to have created over 100 shell companies to obscure their illicit actions.
In a significant development, on June 3, a court ordered Govoni to transfer all stock from his ownership in Big Storm Brewery to a Chapter 11 trustee, as the brewery has become part of the bankruptcy estate. This order highlights the scale of financial mismanagement that has surfaced in the case.
The fraud scheme is tied to the Center for Special Needs Trust Administration (CSNT), which Govoni co-founded around the year 2000. CSNT became one of the largest administrators of special needs trusts, managing over 2,100 accounts with approximately $200 million in total funds meant for individuals with disabilities across the United States. However, in 2024, the nonprofit filed for bankruptcy, revealing a shocking absence of more than $100 million in client funds.
Prosecutors allege that Govoni and Witeck exploited the nonprofit as a “slush fund,” using trust funds for extravagant personal expenditures. Reports indicate that the money was funneled towards luxuries such as private jet travel, living expenses for friends and family, high-priced sports tickets, and real estate ventures. The inappropriate use of these funds has disrupted access to essential services for those relying on support due to disabilities, as well as defrauded federal healthcare programs.
The investigation into Govoni and Witeck’s activities involved multiple federal agencies, including the FBI, IRS, and Social Security Administration. The collaboration among these departments illustrates the seriousness of the allegations and the complexity of the fraud scheme.
In addition to the charges related to wire and mail fraud, Govoni faces further allegations, including bank fraud, illegal monetary transactions, and making a false bankruptcy declaration. These additional charges not only expand the scope of the case but also underscore the significant nature of the alleged misconduct surrounding the mismanagement of funds intended for vulnerable populations.
This case raises critical concerns about the management and protection of funds meant for individuals with disabilities. The actions of Govoni and Witeck have left many questioning the safeguards in place to protect those with special needs and the vulnerabilities they face in accessing necessary resources.
As judicial proceedings progress, the implications of this significant fraud case continue to unfold, leaving families affected by the alleged misappropriation of funds grappling with both financial and emotional repercussions. The outcome of this indictment will be closely monitored as it potentially sets a precedent regarding accountability in the management of special needs funds.
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Additional Resources
- ABC Action News
- Wikipedia: Special Needs Trust
- Fox59 News
- Google Scholar: Florida Fraud Scheme Special Needs
- The New York Times
- Encyclopedia Britannica: Fraud
- Law360
- Google News: Florida Nonprofit Fraud
- BNO News
- Hillsborough County Sheriff’s Office
Author: STAFF HERE TAMPA WRITER
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