Accountant and Nonprofit Leader Stole $100M from Special Needs Trusts

Imagine watching your child’s entire financial safety net disappear—poof—while the guy managing it sips craft beer brewed at a company he secretly funded with your kid’s trust money. That’s not a Netflix thriller. That’s the real-life fraud scheme pulled off by Leo Govoni, founder of a Florida nonprofit, who, along with his accountant John Witeck, allegedly drained over $100 million meant for disabled individuals and their families. Yeah, it’s as shady as it sounds, and justice is finally catching up. Let’s walk through the full story: how it happened, who got hurt, and why this jaw-dropper should scare every fiduciary into stepping up their game.

From Guardian Angel to Greedy Grifter

Back in 2000, Leo Govoni co-founded the Center for Special Needs Trust Administration (CSNT), selling families a dream: “We’ll protect your loved one’s settlement and help it grow.” By 2024, CSNT was managing 2,100+ trusts worth around $200 million, positioning itself as a lifeline for disabled beneficiaries nationwide. But behind the curtain? A 15-year scam that ran hotter than the Florida sun in August.

Here’s the dirty breakdown:

• $100M+ diverted to shell companies tied to Govoni—including breweries, real estate, and over 100 businesses.
• Fake statements were mailed out like clockwork to families, showing balances that didn’t exist.
• New trust deposits cover old client withdrawals—a classic Ponzi-style hustle.

Court records say Govoni used the money to buy beachfront homes, fly privately, and even pay off personal debts. Meanwhile, families like the McMinns were left scrambling to support paralyzed children out of their pockets. As IRS Criminal Chief Guy Ficco put it, “Stealing funds intended to protect and support people with special needs is as cruel as it is criminal.” 

Blowin’ Up in Bankruptcy Court

The house of cards finally toppled in April 2024 when CSNT filed for bankruptcy. That’s when families found out—many for the first time, that the “trust fund” was empty. The numbers are brutal:

• 1,500+ trusts were partially or fully drained.
• Over 100 businesses linked to Govoni were seized, including Big Storm Brewing.
• A 15-count federal indictment followed, charging Govoni and Witeck with wire fraud, mail fraud, money laundering, and more.

Govoni’s looking at 265 years in prison. Witeck? A cool 220. As Kimberly Muszinski, who fought for over a decade after her daughter’s wrongful birth settlement was mismanaged, said: “Justice finally feels real.”

How They Got Away with It

This wasn’t just about one bad actor. It was a perfect storm of:

• Pooled trust loopholes: These funds lump client money together, making fraud easier to hide. There’s often no federal oversight, no audits, and no fiduciary insurance.
• Nonprofit naivety: CSNT had no fraud training or segregation of duties—Govoni and Witeck were basically running the books on themselves
• Trustee malpractice: Govoni funneled trust money into his businesses with zero diversification, no transparency, and no third-party checks.

And the kicker? When victims asked for updates, they got doctored statements instead of actual balances. Straight-up smoke and mirrors.

Lessons from the Wreckage

Financial professionals, take notes. This mess isn’t just a true crime saga—it’s a masterclass to avoid.

• Insurance Isn’t Optional, It’s Oxygen: If a trust administrator doesn’t carry fraud insurance, walk—don’t run. Insurers add oversight, background checks, and accountability.
• Split the Power: Follow the “Three Eyes” rule:
  • One person handles deposits.
  • Another track of disbursements.
  • A third reviews everything annually.
• Tech It Up: Use tools like:
  • Blockchain-based ledgers for transparency.
  • AI alerts for suspicious withdrawals. 
  • The tech exists—what’s missing is the will to use it.
• Diversify Like You Mean It: Govoni dumped everything into his business. Professionals should build portfolios with guardrails:
  • 40% stocks for growth
  • 30% bonds for stability
  • 20% real estate for inflation protection
  • 10% liquid for emergencies
• Communicate Like a Boss: No more “we’ll get back to you” emails. Families deserve:
  • Monthly updates with real numbers
  • Independent appraisals of non-cash assets
  • No spin, no fluff—just facts

Time to Regulate or Get Rolled

This scandal’s fallout is already sparking action:

• Florida Senate Bill 701 (set for 2026) would mandate trust insurance and surprise audits.
• AI tools like Trust Guardian now scan for Ponzi-style activity in real time.
• Federal attention is heating up—prosecutors aren’t playing anymore.

As U.S. Attorney Gregory Kehoe put it, “This fraud was unfathomable. And it will be prosecuted to the fullest extent of the law.”

Trust Ain’t Blind

This case should be a wake-up siren for every fiduciary, nonprofit board member, and family placing their hopes in a trust. Transparency isn’t a favor—it’s a duty. Controls aren’t a nuisance—they’re a necessity. And here’s the truth: the proof is in the pudding. Without audits, documentation, and tough questions, you’re just hoping the system works. And hope, as Govoni’s victims learned, doesn’t write checks when the money’s gone. Don’t let your name be the next headline. So, don't get left behind! Subscribe to MYCPE ONE for the latest updates.