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Judge to decide if Clearwater businessman faces criminal contempt in $100M trust fund case

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Updated  June 12, 2025 3:23pm EDT
Pinellas County
FOX 13 News
Leo Govoni could face criminal charges

Leo Govoni could face criminal charges

A judge will decide if a Clearwater businessman accused of stealing millions of dollars from the trust funds of people with special needs will be charged criminally. FOX 13's Aaron Mesmer reports.

The Brief

    • A hearing was held Thursday surrounding whether a federal judge will refer Clearwater businessman Leo Govoni for criminal contempt.
    • The judge listened to arguments and will issue a ruling at a later date.
    • Govoni is accused of taking more than $100 million from special needs trust funds.
    • Families relying on the trust money are still trying to recover their losses.

TAMPA, Fla. - A federal judge is expected to soon decide whether a long-running trust fund scandal will lead to criminal proceedings.

A hearing was held for Leo Govoni in a Tampa courtroom on Thursday, where Govoni had been ordered last month to produce financial records for himself and several of his companies. His attorney told the U.S. Bankruptcy Judge Roberta Colton that Govoni has produced hundreds of records, but acknowledged there are some that are still outstanding.

Attorneys for the court-appointed officials now in charge of the Center for Special Needs Trust Administration believe Govoni continues to purposefully frustrate their efforts to recoup money for the families of the victims in this case. They urged the judge to recommend a criminal contempt of court charge.

The judge heard arguments from both sides and said she'd issue a ruling in the coming days.

The backstory:

Govoni, a Clearwater businessman, is accused in federal court of taking more than $100 million from medical trust funds managed by the Center for Special Needs Trust Administration, which he founded. The money was intended to cover medical and living expenses for people with disabilities and serious injuries.

Pictured: Leo Govoni.

Pictured: Leo Govoni.

The trust center filed for bankruptcy in February 2024 after records showed the money was loaned to Govoni’s private company, Boston Finance Group, but never repaid. Bankruptcy estate attorneys say Govoni has failed to fully disclose what happened to the funds, including proceeds from roughly $5 million in real estate sales.

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U.S. Bankruptcy Judge Roberta Colton previously found Govoni in civil contempt in April for failing to turn over financial records. 

Court records show Govoni spent lavishly, using trust fund money on a $3.4 million private jet, trips to the Kentucky Derby, large political contributions, and real estate investments. The FBI, IRS, and SEC are also investigating.

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What they're saying:

Many families who relied on the trust funds have been left without critical financial support. 

"Our children are suffering without food, without medicine, without supplies," Theresa Schlosser, whose daughter's trust fund was among those impacted, told FOX 13 on Thursday.

Schlosser attended the hearing and is stunned Govoni has not yet faced any criminal charges.

"For him to walk away while [my daughter] lays in a bed unable to be [unconfined] from it is aggravating, humiliating, and disgusting," she said. "If I can just catch him for a moment to himself. He will not forget me and he will not want to look my way again."

No decision was made in court on Thursday. There's no definitive timeline for when a ruling could come down.

"He met my son, he came to our home," said Amparo Perales, whose son, Javier, had a $2 million trust fund invested with the Center. "I watched the court hearings, and all I see is somebody that is obviously not thinking what he did."

Perales said Govoni convinced her family her son's money would be safe. Now, however, she said there isn't a cent left in the account.

"It's like going through the grief process because we trusted them. We gave them everything," she said. "I'm hoping that it doesn't take years and years. And that's all I see every time that court is there. I see years before any of the victims see anything and I don't even know if we ever do see any money come back to the victims, if we get it all."

The other side:

FOX 13's Aaron Mesmer, who broke the story last year, asked Govoni a series of questions following the hearing, including whether he knows where the money is, if he has anything to say to the victims and if he's sorry or feels any remorse.

Govoni didn't respond to any of the questions.

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The Source: Details for this report were gathered from FOX 13's Aaron Mesmer, federal court records, public bankruptcy filings, and prior FOX 13 News reporting. 

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