2 Florida men are accused of stealing millions from trust fund for people with special needs
Two Florida men have been indicted in what prosecutors describe as a scheme to steal more than $100 million from a nonprofit that managed funds for people with disabilities and 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
Telegraph
34 minutes ago
- Telegraph
M&S checkout operator hit by claims of fraud
A payments provider used by Marks & Spencer has become embroiled in a fraud scandal after it was accused of covering up fake transactions by some customers. Worldline, one of the world's largest payments groups, had its shares temporarily suspended on Wednesday after investors took fright at allegations it had processed some payments on behalf of scammers and had poor money-laundering controls. Shares in the French group plunged by nearly 40pc – knocking €300m (£256m) off its share price – because of the allegations, which claimed the business turned a blind-eye to a network of dubious customers. Worldline is one of the world's largest payments processors and moves payments around the financial system for UK high street giants including M&S, JD Sports and Aldi among others. There is no allegation that any of these Worldline customers knew or were involved in the claims or are accused of any wrongdoing. Risky strategy The Worldline claims were made by a consortium of 21 European newspapers, which alleged in its investigations that millions of euros worth of the French firm's revenues could be linked to 'high risk' customers. According to the allegations, the company is accused of ignoring red flags to take on clients from the 'internet's shady corners' as it took a risky strategy in its push to grow its revenues. In response, Worldline said it has strengthened its controls over the past two years, including terminating €130m worth of contracts with customers in breach of its compliance rules. 'Wherever the group identifies indications of non-compliant situations, additional checks are immediately undertaken, potentially leading to termination of the client relationship,' Worldline said. 'Worldline's Executive Management and Board of Directors are fully committed to strict compliance with regulation and risk prevention standards and to strictly enforce related rules and procedures with zero tolerance.' Worldline was accused of turning a 'blind eye' to some customers' dubious business practices, as it scrambled to boost its revenues by taking advantage of the higher rates paid by the shady clients, the investigation says. According to the claims, internal documents show Worldline processes hundreds of millions of euros worth of payments on behalf of such high-risk clients, including €50m in 2019 alone. Worldline had just two employees responsible for overseeing its money laundering processes, despite having hundreds of high-risk customers, the investigation added.
Reuters
36 minutes ago
- Reuters
Exclusive: Wells Fargo hires Paterson from Citi for activism defense, source says
NEW YORK, June 25 (Reuters) - Wells Fargo (WFC.N), opens new tab has hired a senior banker from Citigroup (C.N), opens new tab to lead its activism defense practice, a person familiar with the situation said on Wednesday, as corporations scramble to build out business units to help clients facing pressure from activist investors. The bank is bringing on Muir Paterson who has been at Citigroup since 2017. He will report to Jeff Hogan, Wells' co-head of Global Mergers and Acquisitions, the source said. Wells has been looking for a senior banker to head its activism defense practice for months, sources contacted about the role said.
Reuters
41 minutes ago
- Reuters
Republicans dangle reprieve from tax retaliation as Trump bill heads toward votes
WASHINGTON, June 25 (Reuters) - A tax proposal that would enable U.S. President Donald Trump to retaliate against countries that impose taxes that he considers unfair could be removed from a sweeping budget bill, if an international deal can be struck before it passes, top White House and congressional Republicans said on Wednesday. The proposal, known as Section 899, opens new tab, is currently part of Trump's tax-cut and spending bill, which Republicans hope to enact as early as Saturday so that the president can sign it into law before the July 4 U.S. Independence Day holiday. House of Representatives Ways and Means Committee Chair Jason Smith told Reuters that the provision could be removed from the legislation if other countries and the European Union agree to suspend taxes such as the "Pillar Two" global minimum corporate tax. "If there's an agreement before the bill's passed, I'd see it to come out. But until the European Union treats U.S. businesses fairly, it will be in the bill," Smith said in an interview. White House economic adviser Kevin Hassett made similar remarks about Section 899, saying: "Maybe it doesn't have to be in the bill if they pull those things back ahead of the vote." Hassett specifically cited Pillar Two and digital service taxes, which impact large U.S. technology companies like Amazon and Alphabet. "We don't like those things, and we've got a tax response, a tax retaliation, a reciprocal retaliation in the bill," he said in an interview with the Fox Business Channel. "And so, we're in negotiations over tax issues," Hassett added. The provision in Trump's One Big Beautiful Bill Act would impose a progressive tax burden of up to 20% on foreign investors' U.S. income, raising concerns on Wall Street about the attractiveness of U.S. investments. Lawmakers have done little to address concerns on Wall Street, despite calls for clarifying language and leeway for the Treasury to exempt countries in negotiations with the Trump administration. The Senate version of the provision would take effect in 2027, one year later than an earlier House version. Senate Republican leaders are aiming to pass the Trump bill as soon as Saturday, and Hassett said the White House would expect the House to vote on full passage later in the day.
