Businessman Accused of Stealing $100M from Special Needs Trusts

Massive Fraud Scheme Uncovered

• 🎯 Leo Govoni and John Leo Whitek are accused of embezzling over $100 million from special needs trusts for over 15 years.
• 💡 The scheme targeted physically and mentally disabled individuals, many of them children, to enrich themselves.

The Center for Special Needs Trust Administration

• 🏢 Govoni founded the Center for Special Needs Trust Administration in 2000, ostensibly to manage trusts for victims of lawsuits and family contributions.
• 💰 These trusts were intended to cover victims' medical expenses, housing, transportation, and other basic needs.
• ⚠️ As of February 2024, the center managed over 2100 trusts with approximately $200 million in assets.

Embezzlement and Lavish Lifestyles

• 💸 Govoni allegedly used victim's money as a slush fund for his business ventures, sons' businesses, private jets, vacations, and real estate.
• 📉 Whitek, as the accountant, facilitated the scheme by providing false financial statements and covering up the theft.
• 🏦 New trust funds from other victims were used to pay expenses for emptied trusts, a tactic to conceal the ongoing fraud.

Cover-up and Bankruptcy

• 🤥 In bankruptcy proceedings, Govoni allegedly misled the court about his assets and withheld business records.
• 🏦 The conspirators used funds from Boston Financial Group, a company controlled by Govoni, as a pass-through for various business expenses and personal enrichment.

Impact on Victims

• 💔 Victims, many of whom suffered life-altering events, are now forced to rely on government assistance for basic needs.
• ⚖️ Law enforcement agencies, including the FBI, IRS, HHS, and Social Security Administration, are committed to holding the accused accountable.
• 📈 The investigation is ongoing, with efforts to seize assets and pursue restitution for the victims.