In a shocking turn of events, two men linked to a prominent nonprofit organization specializing in trusts for individuals with disabilities have been charged with fraud in the United States. The accused, Leo Joseph Govoni and John Leo Witeck, allegedly siphoned off over $100 million meant to support those with special needs.
The U.S. Department of Justice's Office of Public Affairs announced on June 23 that the two men “conspired over more than 15 years, treating funds meant for special needs clients as their personal piggy bank.” The federal indictment outlines a complex scheme involving deceptive financial transactions, document forgery, and fraudulent statements.
At the heart of this scandal is Leo Joseph Govoni, 67, who co-founded the Special Needs Trust Administration Center (CSNT) in Clearwater, Florida, back in 2000. His partner in crime, John Leo Witeck, 60, served as the organization’s accountant. Advertised as a nonprofit committed to managing trusts for individuals with disabilities—including recipients of legal settlements and other supportive funds—CSNT managed more than 2,100 trusts amounting to approximately $200 million before declaring bankruptcy in February 2024.
Betrayal of Public Trust
Prosecutors claim Govoni and Witeck misappropriated funds from the beneficiaries to bankroll a lavish lifestyle during their tenure. “They stole $100 million meant for the most vulnerable members of our society to enrich themselves,” declared Matthew R. Galeotti, head of the Justice Department’s Criminal Division.
Federal prosecutor Gregory W. Kehoe from the Middle District of Florida described the fraud as “immeasurable,” emphasizing the importance of safeguarding the vulnerable as a priority for his office.
A Complex Web of Deception
Court documents reveal that the accused not only diverted funds but also concealed their illicit activities through intricate financial transactions and deceptions. They sent victims with disabilities fraudulent account statements showing false balances. Among the illicit expenditures documented were real estate purchases, private jet travel, brewery financing, and personal expenses such as debt payments and private account deposits.
One of the most egregious aspects, according to the Justice Department, is that Govoni perjured himself during CSNT's bankruptcy proceedings, withholding critical information from the court.
Multiple Charges and Severe Penalties
The charges against them include conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and conspiracy to commit money laundering. Govoni faces additional charges of bank fraud, illegal monetary transactions, and lying during bankruptcy proceedings. If convicted, Govoni and Witeck could face up to 20 years in prison for fraud and money laundering. For Govoni, the sentence could be extended 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 announcement was accompanied by strong statements from the agencies involved in the investigation. “The FBI will not tolerate the exploitation of charitable endeavors for personal gain,” asserted José A. Pérez, deputy director of the FBI. “Stealing funds intended to protect and support individuals with special needs is as cruel as it is criminal,” added Guy Ficco, Chief of IRS Criminal Investigation.
Christian J. Schrank, deputy inspector general of the Department of Health and Human Services, condemned the fraud for “disrupting access to essential services for individuals with disabilities,” directly impacting the quality of life of the beneficiaries. The investigation is ongoing and is being conducted by a multidisciplinary team from the FBI, IRS-CI, the Office of Inspector General of the Department of Health and Human Services (HHS-OIG), and the Social Security Administration's Office of Inspector General (SSA-OIG). The prosecution is being led by trial attorney Lyndie Freeman and federal prosecutors Jennifer Peresie and Michael Gordon.
This case, now unfolding in the courts, represents one of the most significant financial scandals involving the diversion of funds for disabled individuals in recent U.S. history.
Key Questions About the Florida Trust Fraud Case
What was the role of Leo Joseph Govoni in the trust fraud case?
Leo Joseph Govoni, co-founder of the Special Needs Trust Administration Center, was the main accused in orchestrating the fraud, allegedly using funds meant for disabled individuals for personal gain.
What penalties do Govoni and Witeck potentially face?
If convicted, Govoni and Witeck could face up to 20 years in prison for fraud and money laundering, with Govoni facing additional years for bank fraud and other charges.
How did the accused conceal their fraudulent activities?
They used complex financial transactions and sent fraudulent account statements with false balances to disguise their activities.