2 Florida men are accused of stealing millions from trust fund for people with special needs
Federal authorities this week unsealed an indictment charging Leo J. Govoni, 67, of Clearwater, and John Witeck, 60, of Tampa, with multiple counts including mail fraud, wire fraud and conspiracy to commit money laundering. If convicted on all counts, they face decades in prison.
The case involves one of the nation's largest administrators of special needs trusts, which are designed to manage funds for people with special needs.
The Center for Special Needs Trust Administration in Clearwater, which Govoni co-founded 25 years ago, managed more than 2,000 accounts containing about $200 million for people in Florida and around the nation. Clients were promised that the nonprofit would protect and invest their money, prosecutors say.
But Govoni and Witeck, an accountant who worked with Govoni, used the nonprofit as a 'slush fund' to enrich themselves, court papers state.
Govoni is accused of using money from the nonprofit to travel on private jets, pay living expenses for his friends and family and live a lavish lifestyle 'complete with luxury boxes at Tampa Bay Buccaneers games and the Kentucky Derby,' prosecutors said in court records.
No lawyers for Govoni or Witeck are listed in court files. Two lawyers listed as representing Govoni in a separate bankruptcy case did not immediately respond to phone and email messages requesting comment on Tuesday. A third lawyer who has represented the nonprofit in the bankruptcy case didn't immediately respond to messages.
Prosecutors accuse the men of concealing the fraud through complex financial transactions, and sending fraudulent account statements with false balances to people with special needs and their families.
The nonprofit filed for bankruptcy in 2024 and 'disclosed that more than $100 million in client-beneficiary funds was missing from its trust accounts,' federal prosecutors said in a statement announcing the indictment.
'The fraud alleged in this nationwide scheme is unfathomable,' U.S. Attorney Gregory Kehoe said in the statement.
The case was investigated by numerous federal agencies, including the FBI, the IRS and the Social Security Administration.
'Not only were the organization's resources drained, but the accused subjects betrayed the trust of the community and ultimately bankrupted a lifeline for vulnerable families,' said Jose Perez, assistant director of the FBI's Criminal Investigative Division.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Ex-Heat security guard pleads guilty to selling millions in stolen memorabilia, including LeBron James Finals jersey
A former Miami Heat security guard pleaded guilty Tuesday in Florida to transporting and transferring stolen goods in interstate commerce, in connection to the millions of dollars worth of memorabilia he was alleged to have stolen from the team. Marcos Thomas Perez, 62, is a retired 25-year veteran of the Miami police department and was employed by the Heat from 2016 to 2021. He also worked in security for the NBA from 2022 until this year. Per NBC 6 South Florida, his sentencing date has been set for Oct. 31,, when he will face a maximum penalty of 10 years in prison, three years of probation and a fine of up to $250,000. His lawyer reportedly hopes his year in law enforcement will encourage leniency: "He's depressed, naturally, but he accepts responsibility for his behavior and we're gonna work through this issue in his life," defense attorney Robert Buschel said after the hearing. "I hope that the judge will consider all factors in his life and his history as a good person, he was an exemplary police officer in the City of Miami, he's been retired for close to 10 years," Buschel said. "This was an unfortunate set of decisions that he made and he's going to accept responsibility for that." It was during his time working gameday security at the Kaseya Center that Perez was alleged to have stolen hundreds of game-worn jerseys and other memorabilia from a secured equipment room. The items were kept to be future exhibits at a Heat museum. By the DOJ's count, Perez stole more than 400 jerseys and sold more than 100 of them online, making approximately $1.9 million over a three-and-a-half year period. The most notable garment: a LeBron James jersey worn in the NBA Finals, sold for roughly $100,000 and later auction off at Sotheby's for $3.7 million. That jersey would be the one James wore during the Heat's win in Game 7 of the 2013 NBA Finals, in which the superstar earned his second title and Finals MVP award. At the time, it was the third-highest price ever received for a game-worn jersey, behind a Michael Jordan jersey from the 1998 NBA Finals ($10.91 million) and Diego Maradona's "Hand of God" jersey ($9.28 million). Law enforcement reportedly executed a search warrant at Perez's home in April and recovered nearly 300 pieces of memorabilia, all of which the the Heat confirmed to have come from their facility.
Yahoo
11 minutes ago
- Yahoo
Columbus City Schools eyes staff cuts, school closings to make $50 million in reductions
The Columbus City school board has voted to cut $50 million annually from its budget to deal with a growing financial crisis, with additional school closures and staffing cuts a possibility. At an Aug. 13 special meeting, a joint committee of board members and committee members approved a recommendation to cut the $50 million, moving the recommendation to the school board. For 2026, the district has a $1.8-billion budget. On Aug. 19, the board voted to approve making the cuts and directed the superintendent to present a plan by the end of November for what the cuts should look like. Board President Michael Cole said that the cuts will be challenging, but added that "first and foremost," they will be in "the best interests of our children." "It's not a comfortable conversation, it's not one that's easy, but I can say that this is one that we're equipped for and this is what folks elected us to do — to make these tough decisions," Cole said. District facing financial headwinds Last week, The Dispatch reported that the district will begin deficit spending this year and will be out of cash by fiscal year 2029 under current projections. Presently, the district has more than $300 million in reserve cash. The discussion around budget cuts comes amid a variety of pressures on the district, including a recent reduction in funding from the state, federal funding uncertainty and inflation. The district also faces a growing penalty from the state for noncompliance related to the transportation of charter and nonpublic students. In fiscal year 2025, the penalty is projected to be assessed at $10 million, and from fiscal year 2026 to 2029, the transportation penalty is projected at $15 million, according to data presented on Aug. 13. And on Aug. 14, the Columbus Education Association, which represents teachers and other faculty, voted to approve a new contract with the district that includes 2.25% raises for members of the union, which the board approved at the Aug. 19 meeting. Personnel costs make up over 83% of the district's budget, according to district data. Cole said that the reality is that personnel expenses are "a significant portion of our budget." "It's important to identify where we can have the most minimal impact on that space," Cole said. "Without jumping in front of things, I want to make sure we do the proper work necessary to ensure kids have what they need to succeed in the district." John Coneglio, president of the CEA, said that budget cuts "will fall heavily on the teachers and support staff." "That's a concern of mine, and as we go through this process, we're going to make sure that all of our teachers are supported and the process is done correctly," Coneglio said. More school closures could be coming The board also discussed revamping school closings in the context of the threat to the district's financial solvency. The CCS board voted in December 2024 to close Broadleigh Elementary, Buckeye Middle School, Moler Elementary and the building that houses Columbus Alternative High School. The board also voted to close West Broad Elementary — under the condition that the board can secure funding to replace the school building on the site — and to close the Downtown board office building at 270 E. State St. Columbus City Schools Superintendent Angela Chapman said that clearing up some expenses on the operations side of maintaining and operating "legacy" buildings could afford the district the ability to invest in classrooms. "We're also looking at our operations, and looking how we can provide services leaner and make ways that are more efficient so we can redirect some of the dollars on the operation side of the classroom to help close some of those gaps," Chapman said. Marielle Henault, a member of Pint-Sized Protestors and the Columbus Education Justice Coalition, said during public comment that the board needs to create a community-centered approach that "would truly involve the communities that could be impacted." "We can see all the numbers we want, but at the end of the day, our kids are not numbers and their communities aren't squares on a game board that can be moved around at someone's whim," Henault said. Cole Behrens covers K-12 education and school districts in central Ohio. Have a tip? Contact Cole at cbehrens@ or connect with him on X at @Colebehr_report This article originally appeared on The Columbus Dispatch: CCS board approves $50 million in cuts, details could come by November Solve the daily Crossword
Yahoo
11 minutes ago
- Yahoo
City of Eau Claire continues to grow
EAU CLAIRE — New data from the Wisconsin Department of Revenue reveals that the city of Eau Claire has grown by about 6.7% in the last five years. It is now the seventh largest city in the state. Eau Claire County was also found to be the fourth fastest growing county in the state. 'For the county, the net migration is what stands out as more of a growth factor,' said Regional Economist for the Wisconsin Department of Workforce Development (DWD) Tom Walsh. However, what percentage of those migrating into the city would make up a part of the workforce is harder to come by. What he was able to point out was that a larger than average percentage of the population in Eau Claire is between the ages of 18 and 24. 'The City of Eau Claire will tend to have more people in the college-age demographic just because of the location of the university,' he said. 'For a reference point, the US and Wisconsin are at 9.1% and 9.3% in the 18 to 24 demographic, whereas the estimate for the city of Eau Claire is about 20%.' While not everyone in this age demographic is in college, he said it is a little tricky to determine how much of this age demographic makes up what is considered to be the labor force. 'The labor force is the employed plus the unemployed,' he said. 'The unemployed is anyone that is actively seeking work. So a college student would be considered in the labor force if they're actively employed or if they're actively seeking work. They would not be in the labor force if they're not currently working or not currently looking for work.' Walsh did not have data on the percentage of people in the city of Eau Claire who make up the workforce, but the 2025 Workforce Profile Snapshot for Eau Claire County produced by the Wisconsin DWD lists that the labor force participation rate for Eau Claire County is 67.8 percent. This is 2.5 percentage points higher than the state's overall labor force participation rate. The labor force participation rate is the percentage of those aged 16 and older who make up the labor force. The unemployment rate for Eau Claire County is 2.7%. Other things affecting the city and the county's workforce participation include the aging population. 'That's really being driven by the Baby Boom age demographic,' he said. 'When you have a lower percentage of your population that's in the prime working years, it has a labor market impact.' He said the effects of the aging population include 'the tight labor market, the difficulty finding workers, and an increased in need for healthcare.' Currently, about 28.7% of Eau Claire County is composed of individuals who are aged 55 or older according to the DWD's 2025 Workforce Profile Snapshot for Eau Claire County. Walsh did point out that much of the data he was pulling was from the American Community Survey Estimate which would offer slightly different numbers than the data from the Wisconsin Department of Revenue. Nonetheless, he said it offered some ability to make comparisons. Solve the daily Crossword
