St. Pete non-profit missing $100M to shut down permanently amid FBI investigation
ST. PETERSBURG, Fla. (WFLA) — An 8 On Your Side investigation found millions of dollars went missing from a St. Petersburg trust fund meant to help disabled people.
We have been exposing issues at the Center for Special Needs Trust Administration since March.
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Families gave the center money from large settlements to hold in trust for their loved ones and provide for their future care, but that money is missing and victims are left wondering what’s next.
A judge overseeing this case has asked for a plan to shut down the Center for Special Needs Trust Administration and appointed a new not-for-profit to manage the Center’s remaining days and funds. For the families who put their trust in the center, there is still just one question: where’s our money?
Back in February, the Center for Special Needs Trust Administration filed for Chapter 11 Bankruptcy after it was discovered $100 million of funds were loaned to center founder, Leo Govoni‘s business, Boston Finance Group, between 2009-2020.
The center said Govoni has not paid that money back. The nonprofit manages special needs trusts for over 2,000 people who suffer from disabilities, ensuring they could still receive government assistance benefits including Medicaid and Social Security.
“This is the people that you stole from kids, like this it’s awful,” said Louis Capasso, father of victim Elena Capasso.
“I really do want my money back,” Elena Capasso said.
Court records show 75% of the trusts were either partially or fully drained. 8 On Your Side has heard from these vulnerable families left scrambling.
“This is the most the most disabled you can be; there isn’t a degree beyond this,” said Theresa Schlosser, mother of victim Sarah Schlosser. “This the most disabled and how in your conscience, do you decide to take what is helping her to live every day the best that she can live and take it away from her, where do you find that in your soul?”
Judge Roberta Colton appointed Chapter 11 Trustee Michael Goldberg to oversee the Center and find the missing money. Earlier this month, Goldberg filed a motion to approve the wind-down and permanent closure of the Center by December 31st.
Judge Colton is expected to approve the motion Tuesday. When that happens, the remaining funds in pooled trusts will be transferred and managed by another trust administrator, which has been named as CPT Institute Inc. It’s a florida based non-profit selected after Goldberg’s team, “conducted extensive due diligence on CPT, including interviewing the officers of CPT and its counsel, reviewing its financial records, conducting public records searches.”
The Unsecured Creditors Committee, which represents the victims, is providing tools and resources to get families ready for this transition, including this list of volunteer special needs attorneys.
The committee said pooled trusts will be defaulted into CPT. CPT will help other individual trusts find a new home. Families can choose CPT or another administrator of their choosing, and if that’s the case they will need to opt out by November 22.
It is recommended families consult an attorney or legal aid resources, including:
Tragically, there are a handful of cases where victims have passed away. Goldberg’s team is working to administer these trusts with the appropriate state Medicare and Medicaid agencies. Goldberg will reach out to them directly to identify where residual trust amounts should be sent once this process is completed.
The committee has also this document to help answer frequently asked questions.
Frequetly-Asked-QuestionsDownload
Once the center shut down by the end of the year, Goldberg said his team will focus on litigation and the recovery of funds. During an informational Zoom meeting on Monday morning, Goldberg said, “his team believes a massive fraud was committed.”
Goldberg has sued Leo Govoni and Govoni-owned entities.
Families affected can email info@centertrust.org for their trust documents. The Chapter 11 Trustee’s forensic accountant is working to provide accounting to victims, which will be made available at a later time.
8 On Your Side has previously reported FBI Tampa Division has launched a criminal investigation. Investigative Reporter Brittany Muller has been told every state federal agency is looking into this case in some regard.
The FBI, Victim Services Division is asking families, if they have any information or if they believe they are a victim, to complete the agency’s questionnaire: https://forms.fbi.gov/survey. The agency’s website said they may be contacted by the FBI and asked to provide additional information.
The FBI said if victims have any questions regarding the questionnaire or resources for victims, email CSNTvictims@fbi.gov.
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