Special Needs Trust Founder Sued for Stealing $100M, CSNT Files Bankruptcy
CSNT filed for bankruptcy amid $100M theft by co-founder Leo Govoni.
Why it matters: Trust and estate lawyers must track this major fraud case impacting over 1,500 disabled beneficiaries. It highlights risks in managing vulnerable clients' funds and sets precedent for recovery measures.
- CSNT filed Chapter 11 bankruptcy on Feb. 9, 2024, following a $100 million shortfall in special needs trust funds.
- Co-founder Leo Govoni took unauthorized $100 million loans via his company Boston Finance Group from 2009 to 2020.
- Federal indictment on June 23, 2025, charges Govoni and accountant John Witeck with conspiracy, wire and mail fraud for theft.
- Over 1,500 beneficiaries affected; bankruptcy court held Govoni liable for $120 million damages in Jan. 2025.
The Center for Special Needs Trust Administration (CSNT), a nonprofit in Florida, filed for Chapter 11 bankruptcy on February 9, 2024, after uncovering a massive $100 million shortfall in trust funds meant for disabled clients. This revelation came after an internal probe found that co-founder Leo Joseph Govoni had issued himself unauthorized loans totaling approximately $100 million between 2009 and 2020 through Boston Finance Group, an entity under his control, without board approval. Fox13 News.
Federal prosecutors indicted Govoni and accountant John Leo Witeck on June 23, 2025. The charges include conspiracy to commit wire and mail fraud, mail fraud, wire fraud, and conspiracy to commit money laundering. The indictment alleges the stolen funds were spent on real estate, private jet travel, a brewery investment, and personal debt repayment. Justice Department, Miami Herald.
A class action lawsuit filed on February 19, 2024, alleges the misappropriation affected more than 1,500 beneficiaries and involved over 100 million dollars of special needs trust assets over more than a decade. ClassAction.org.
In January 2025, a bankruptcy court found Govoni liable for over $120 million in damages related to the mismanagement. Meanwhile, Michael Goldberg, the bankruptcy trustee, is moving roughly 2,000 trust funds out of CSNT's control to safeguard beneficiaries’ interests. ElevenFlo, Tampa Bay Times.
CSNT spokesperson Beth Leytham emphasized efforts to recover funds, noting the organization is "working nearly round the clock" to return assets to beneficiaries. Justice Department officials condemned the defendants for using funds meant for society's most vulnerable as a personal piggy bank, marking this as a significant breach of trust and fiduciary duty. DOJ statement.
By the numbers:
- $100 million — stolen from CSNT trust funds over 11 years
- 1,500 — beneficiaries affected by trust fund misappropriation
- 2,000 — special needs trusts administered by CSNT
- $120 million — damages Govoni held liable for by bankruptcy court in January 2025
What's next: Litigators should watch for criminal trial developments for Govoni and Witeck and progress in the federal class action lawsuit.