$100M gone: Did businessman accused of taking money from special needs trusts have help?

TAMPA, Fla. (WFLA) — As 8 On Your Side previously reported, $100 million has gone missing from a nonprofit in St. Petersburg, money that’s meant to help the disabled.

Businessman Leo Govoni stands accused of loaning that money to himself and not paying it back.

As of April 23, court records show Govoni owes the Center for Special Needs Trust Administration a total of $142,283,314. A new complaint alleges that Govoni controlled the flow of funds by putting people in place that would sign off on the deal.

Louis Capasso fears his daughter, Elena, won’t ever see her money. 8 On You Side Investigator spoke with him in March.

“I received a letter in the mail about four weeks ago,” said Capasso. “It’s her yearly statement investment. What she has in there, a week later, three weeks ago. I get a letter in the mail saying the account has been depleted. There’s nothing left in there.”

Elena was born with Down syndrome. A doctor made a mistake, and Elena and her family received enough money that was supposed to take care of her for the rest of her life. Money that was placed trust at the center.

Capasso said hundreds of thousands of dollars vanished.

“Nobody went and checked all this time, and the money is just gone,” he added. “Where did it go and how was he able to go in there and take it?”

The center said that between 2009 and 2020, numerous transfers totaling $100 million were made to Boston Finance Group, a company controlled by Govoni.

Michael Goldberg is the Chapter 11 trustee appointed to run the center. He is tasked with finding the missing money. He filed a complaint for damages and other relief against BFG and Govoni. The document accuses Govoni of taking control of the center’s finances through employees and outside entities.

Goldberg writes that Govoni relied on an employee, Tracey Gregory, who allowed the $100 million loan to be transferred. Court documents state that Gregory was employed by another Govoni-owned business called Boston Settlement Group, and also worked at the center on its Board of Directors, and as the accounting manager from 2008 until her resignation in 2020.

“In her position, Gregory had full access and control over the Debtor’s (Center’s) bank accounts and financial records,” the document said. “Govoni was able to prevent the Beneficiaries from becoming aware of the $100 million transfer and ensuing loan default by exercising control over the information and financial disclosures the Beneficiaries received.”

The complaint alleged that the center also used an accounting firm called Fiduciary Tax and Accounting Services, which is owned by Govoni. Court records show the center paid FTAS about $650,000 annually for its services. This company would provide all required annual trust accounting and the tax filing services for each trust.

The center also contracted its HR and IT needs with yet another Govoni-owned and operated company, Austin Colby. This company controlled the center’s payroll processing and had control over the payroll account. The complaint accuses Govoni of hiring and firing employees in key positions of authority, including Gregory and his own daughter, Caitlin Janicki.

As 8 On Your Side reported, following her resignation in April 2022, Janicki, the center’s vice president, left an unsigned letter on her desk, which caused everything to begin unraveling.

Goldberg included the loan documents in the complaint, painting a picture of how and when it all unfolded.

In June 2009, the center began a loan agreement with Boston Finance Group for $2.5 million. The document also said BFG executed and delivered a promissory note, which showed the addresses for both BFG and the center as the same listed address.

Over the years, that loan continued to increase until it reached $100 million in 2012. The loan was to be repaid back on Jan. 1, 2017. But as of April 2024, Goldberg said the center is owed a total of $142,283,314. The document said that includes $100,000,000 in principal and $42,283,314 in interest, together with interest which continues to accrue.

When reached for a statement, Govoni’s attorneys previously told 8 On Your Side no comment. We reached out the Department of Justice to see if a criminal investigation is underway. We were told that it does not confirm the existence or status of any investigative work.

Govoni, his companies and several other alleged key players are facing two class action lawsuits. Goldberg has filed a motion to enforce automatic state. He has asked the bankruptcy judge to freeze those civil suits while the bankruptcy involving those trust funds for the disabled are sorted out.

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