Florida Men Indicted for $100 Million Nonprofit Embezzlement Scheme

Two individuals from Florida have been indicted for their alleged involvement in a scheme to embezzle over $100 million from a nonprofit organization that managed funds for people with disabilities and special needs. The defendants, Leo J. Govoni and John Witeck, are accused of using the nonprofit as a personal "slush fund" to enrich themselves over a period of 15 years.

The Center for Special Needs Trust Administration, cofounded by Govoni 25 years ago, was one of the nation’s largest administrators of special needs trusts. The organization managed over 2,000 accounts containing approximately $200 million for clients across the nation. Clients were assured that their funds would be protected and invested responsibly. However, prosecutors allege that Govoni and Witeck, an accountant who worked with Govoni, misused the funds for personal gain.

Govoni is accused of using the stolen money to fund a lavish lifestyle, including private jet travel, paying living expenses for friends and family, and enjoying luxury boxes at high-profile events such as Tampa Bay Buccaneers games and the Kentucky Derby. The defendants are charged with multiple counts, including mail fraud, wire fraud, and conspiracy to commit money laundering. If convicted on all counts, they face decades in prison.

The nonprofit filed for bankruptcy in 2024, revealing that over $100 million in client-beneficiary funds was missing from its trust accounts. Prosecutors accuse the men of concealing the fraud through complex financial transactions and sending fraudulent account statements with false balances to people with special needs and their families. The case was investigated by numerous federal agencies, including the FBI, the IRS, and the Social Security Administration.

The allegations highlight a significant breach of trust and financial misconduct, raising concerns about the oversight and management of charitable organizations and trust funds. The case underscores the importance of robust financial controls and transparency in non-profit entities, particularly those responsible for managing funds for vulnerable populations. The legal proceedings will likely focus on the extent of the financial misappropriation and the impact on the beneficiaries who were supposed to receive support from the trust fund.

The charges against Govoni and Witeck serve as a stark reminder of the potential for abuse within the non-profit sector. The case emphasizes the need for stringent financial oversight and accountability in organizations managing funds for charitable purposes. The legal process will determine the extent of the defendants' culpability and the measures that can be taken to prevent similar incidents in the future.