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Two men connected to one of the most prominent nonprofit organizations managing trusts for individuals with disabilities in the U.S. have been charged with fraud.
The arrested individuals, Leo Joseph Govoni and John Leo Witeck, are alleged to have embezzled over 100 million dollars intended to assist victims with special needs.
According to the official statement issued on June 23 by the Office of Public Affairs of the Department of Justice, the defendants “conspired for more than 15 years to use clients' special needs funds as a personal piggy bank.”
The federal complaint states that the fraud was carried out through a network of deceptive financial transactions, document forgery, and fraudulent statements.
The main accused, Leo Joseph Govoni, 67, co-founded the Center for Special Needs Trust Administration (CSNT) in 2000, based in Clearwater, Florida.
His collaborator and co-defendant, John Leo Witeck, 60 years old, served as the entity's accountant.
CSNT presented itself as a non-profit organization dedicated to managing trusts for individuals with disabilities, including beneficiaries of court settlements, out-of-court agreements, and other support funds.
The organization managed more than 2,100 trusts valued at around 200 million dollars until February 2024, when it declared bankruptcy.
Betrayal of public trust
During that time, prosecutors allege, Govoni and Witeck unlawfully appropriated funds from beneficiaries in order to finance a luxurious lifestyle.
“They stole 100 million dollars intended for the most vulnerable members of our society to enrich themselves,” denounced Matthew R. Galeotti, head of the Criminal Division of the Department of Justice.
Federal prosecutor Gregory W. Kehoe, from the Middle District of Florida, described the fraud as "immeasurable," emphasizing that protecting the most vulnerable is a priority for his office.
A sophisticated scheme of deception
According to the court documents, the defendants not only embezzled funds but also "concealed their illegal activities through complex financial transactions and deceit, including sending fraudulent account statements with false balances to victims with disabilities."
Among the documented illegal expenses are the purchase of properties, private jet travels, financing a brewery, and personal payments, such as debt repayment and deposits into private accounts.
One of the most serious aspects, according to the Department of Justice, is that the defendant Govoni lied under oath during the bankruptcy proceedings of CSNT, concealing critical information from the court.
Multiple accusations and potential penalties
The charges include conspiracy to commit electronic and postal fraud, electronic fraud, postal fraud, and conspiracy to commit money laundering.
Govoni is also accused of bank fraud, illegal monetary transactions, and false statements in the bankruptcy process.
If found guilty, Govoni and Witeck face up to 20 years in prison for charges of fraud and money laundering.
In Govoni's case, the sentence could increase by up to 30 additional years for bank fraud, 10 years for illegal monetary transactions, and 5 years for false statements.
Institutional condemnation and commitment to justice
The statement was accompanied by strong remarks from representatives of the agencies involved in the investigation:
"The FBI will not tolerate the exploitation of charitable works for personal gain," stated José A. Pérez, deputy director of the FBI.
“Stealing funds intended to protect and support people with special needs is as cruel as it is criminal,” added Guy Ficco, Chief of Criminal Investigation at the IRS.
Christian J. Schrank, Deputy Inspector General of the Department of Health and Human Services, reported that the fraud "interrupted access to essential services for people with disabilities," directly affecting the quality of life for beneficiaries.
The investigation is ongoing, led by a multidisciplinary team composed of the FBI, IRS-CI, the Office of Inspector General of the Department of Health and Human Services (HHS-OIG), and the Office of Inspector General of Social Security (SSA-OIG).
The accusation is being led by trial attorney Lyndie Freeman and federal prosecutors Jennifer Peresie and Michael Gordon. With beneficiaries in nearly every state, the organization was a pillar for the most vulnerable families.
The case, now in court, marks one of the largest financial scandals related to the embezzlement of funds for people with disabilities in recent U.S. history.
Frequently Asked Questions about the Million-Dollar Fraud Against Individuals with Disabilities in Florida
Who is responsible for the million-dollar fraud against people with disabilities in Florida?
The individuals responsible for the fraud are Leo Joseph Govoni and John Leo Witeck. Both were connected to a non-profit organization tasked with managing trusts for individuals with disabilities in the U.S. They were accused of diverting more than 100 million dollars intended to benefit victims with special needs.
How was the trust fraud for people with disabilities carried out?
The fraud was carried out through deceptive financial transactions, document forgery, and fraudulent statements. The defendants diverted funds from beneficiaries to finance a life of luxury, concealing their illegal activities through complex transactions and financial deceit.
What consequences do the accused of this million-dollar fraud in Florida face?
Govoni and Witeck face up to 20 years in prison for charges of fraud and money laundering. Govoni could also receive up to an additional 30 years for bank fraud, 10 years for illegal monetary transactions, and 5 years for false statements in the bankruptcy process.
What impact did the fraud have on disabled individuals who are beneficiaries of the trusts?
The fraud interrupted access to essential services for people with disabilities. This directly affected the quality of life of the beneficiaries, compromising their well-being and the resources allocated for their care and support.
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