TAMPA, Fla. (WFLA) — A federal judge has ordered that a St. Petersburg non-profit, which lost millions of dollars meant to help disabled people, be shut down for good.
8 On Your Side has investigated the Center for Special Needs Trust Administration for the last 8 months.
Bankruptcy court records show the center’s founder, businessman Leo Govoni, loaned himself over $100 million from the non-profit’s accounts but never repaid the loan.
1,500 families relied on the center to safeguard money meant for their disabled loved ones, but Govoni’s loan drained most of their accounts, leaving some without a penny.
Judge Roberta Colton has ordered the center’s closure, and any remaining funds will be turned over to a new trust administrator named CPT Institute.
Chapter 11 Trustee Michael Goldberg, who oversees this case, said the judge’s order is an important step forward, and he can now focus on litigation and recovering some of that missing money for the families involved.
The center will close by Dec. 31, 2024. Families affected must select a new pooled trust, or successor trustee, depending on the type of trust you have. Here are frequently asked questions and answers to help you through this process.
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.
It is recommended families consult an attorney or legal aid resources, including:
- Special Needs Alliance: www.specialneedsalliance.org
- Academy of Special Needs Planners: https://specialneedsanswers.com/
- National Academy of Elder Law Attorneys: www.naela.org
- National Elder Law Foundation: www.nelf.org
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