Leo Govoni case: Emotions high for victims after Pinellas businessman arrested in $100M scheme
TAMPA, Fla. - The families who lost, in some cases, millions of dollars in an alleged fraud and money laundering scheme conducted by Leo Govoni told FOX 13 on Tuesday that they felt a range of emotions a day earlier after hearing about Govoni's arrest.
Dig deeper:
Rebekah Bowman's son received $800,000 following a medical lawsuit connected to an incident that left him disabled and in need of constant care. She said Govoni personally convinced her family in 2004 that their son's money was safe with the Center for Special Needs Trust Administration, the non-profit he founded in St. Petersburg.
"One of the things he said to me was 'entrust your money in me and I will help, I will protect that and grow that so that you don't have to worry about it,'" Bowman said.
The account belonging to Bowman's son, Kienan Freeman, was partially drained in what federal investigators said was a scheme by Govoni to steal $100 million from the Center during the course of about a decade. The Center filed for bankruptcy and reported the accounts of more than 1,500 clients had been fully or partially emptied.
Pictured: Leo Govoni.
RELATED: Pinellas businessman accused of stealing $100M from special needs trusts indicted on federal charges
"We have wondered for so long why, you know, people have done far less and gone to jail much more quickly," Bowman said.
Govoni's arrest
The backstory:
Federal authorities announced Monday they'd arrested Govoni and released a 15-count indictment. Govoni and his accountant, John Witeck, now face a series of charges including bank and wire fraud and money laundering.
U.S. Attorney Greg Kehoe said Govoni set up dozens of businesses and shell companies, creating a slush fund to enrich himself and others for more than a decade. One of the businesses was Big Storm Brewing in Clearwater, which is now run by court-appointed officials and recently filed for bankruptcy.
"Govoni used his victims' monies to fund his own various business ventures and those of his sons, finance a lavish lifestyle, including trips on private jets, pay for expensive vacations, and purchase real estate," Kehoe said.
Kehoe said Govoni and Witeck covered their tracks by sending annual false accounting statements to their victims. Investigators added Govoni continued the fraudulent activity into May of this year, even though he'd been under investigation for months.
Govoni will be ordered to forfeit more than a dozen businesses if he's convicted. The federal government had already seized more than 100 of his businesses and properties.
What they're saying:
Govoni's alleged victims were emotional when they heard about the arrest.
"That's the saddest part, that he took these people's trust funds and left them with nothing. We have people who have lost their cell phones, internet service can't pay for their rent," Bowman said, adding Govoni tried to talk with her after a court hearing last month. "He gave me a hug, and he said it's not what it seems. That just doesn't make any sense. If it's not what it seems, then where's the money? Why are you not telling people what it is?"
The other side:
FOX 13 has attempted to ask Govoni a series of questions prior to his hearings in federal bankruptcy court, but he has never answered any of them.
The Source: The information in this story was gathered by FOX 13's Aaron Mesmer.
WATCH FOX 13 NEWS:
STAY CONNECTED WITH FOX 13 TAMPA:
- Download the FOX Local app for your smart TV
- Download FOX Local mobile app: Apple | Android
- Download the FOX 13 News app for breaking news alerts, latest headlines
- Download the SkyTower Radar app
- Sign up for FOX 13’s daily newsletter